Introduction to Commercial Real Estate Fundamentals

Length: 2 Days

The purpose of this course is to raise the level of commercial real estate underwriting knowledge and competence of the new analyst or underwriter involved in lending on income property. The session provides analytical and diagnostic tools useful in the following areas of commercial real property financing, including:

• General vocabulary terms used in the business of real estate finance
• The use of NOI, Debt Service Coverage Ratios and Loan to Value concepts in determining appropriate loan amounts for real property finance
• The importance of analyzing a rent roll and the cash flow characteristics generated by tenants of a particular property
• The use of capitalization rates in determining property values
• The use of appraisals in the loan approval process
• The real estate loan structure decision process, including the use of covenants and other protective features useful to the bank lender
• Practical application of the structural decision process to case study scenarios