Day 3

          Advance Financial Analysis

Our last day of the series provides participants a unique opportunity to acquire more advanced credit skills that are essential for a credit analyst/lender in today’s business environment.  

 

Key Topics

  • Signs of a Financially Distressed Business
  • Grading Loans in Today's Regulatory Environment
  • The Types of CRE Loans
  • Analyzing the Projected Cash Flow of a CRE Property
  • How to Review a CRE Appraisal
  • Analyzing Liquidity & Contingencies of a Guarantor
  • Determining the Global Cash Flow of a Guarantor
  • Reviewing a Partnership 1065 Federal Tax Return
  • Requirements for a Financially Responsible Guarantor

 

Credit Management

Attendees learn how to recognize the early signs of a financially distressed business. We outline how examiners grade commercial loans in today’s regulatory environment.

  

CRE Lending

We review the fundamentals of CRE lending.

  • Types of CRE loans: ADC, Construction, Balloon & Bullet, Mini-Perm and Permanent.
  • Typical CRE Loan Documentation
  • Understanding CRE Appraisals
  • Guidelines for Reviewing Appraisals
  • Construction Budget & Draw Requirements

   

Case Study: CRE Loan
We study how a lender performs a grade review of a loan to a partnership that owns an office building.  We scrutinize the property’s projected cash flow and the guarantor’s tax return. Attendees develop a global cash flow that reconciles the following.

   

The guarantor is the majority owner in a Sub-Chapter S Corporation.  He receives a salary and distribution from the S Corp.  The S Corp also owns investment real estate.

 

The guarantor has an investment in a real estate partnership that also owns an equipment parts business both of which are profitable.  However, it has an investment in another real estate partnership that is having cash flow problems. 

 

He has an investment in a partnership that owns an equipment parts business.  The partnership rents out equipment and owns an interest in another business.  All operations are profitable. 

 

The guarantor owns a commercial rental property in his own name. The property is leased to a local company.

 

He is receiving payments on a promissory note resulting from the sale of real estate 2 years ago.  Lastly, the guarantor has significant contingencies related to his investments.

 

Case Study Topics

  • Scrutinizing the operating statement of a CRE property
  • Reviewing a rent roll and leases
  • Establishing the credit profile of tenants
  • Obtaining information on physical condition of property
  • What factors must be considered when projecting CRE cash flow
  • Global Cash Flow of a guarantor
  • Analyzing the liquidity & contingencies of a guarantor
  • Partnership ordinary income, separately stated items, contributions, distributions & guaranteed payment
  • Establishing a Financially Responsible Guarantor
Seminar meets from 9:00 am to 5:00 pm  (Central Time)
Session Advance Financial Analysis
CFA 2405 3/7/24
CFA 2407 4/4/24
CFA 2408 4/18/24

Commercial Financial Analysis

 

2024 Thru April

 

CFA 2405  3/5 - 3/7

CFA 2406  Cancelled

CFA 2407  4/2 - 4/4

CFA 2408  4/16 - 4/18

 

CFA Training Fee

$675 per Attendee

Writing Credit

Presentations

 

WCP 2401  2/27

(Session Closed)

 

WCP 2402  2/29

 

$275 per Attendee

C & I 

Working Capital Financing

 

WCF 2401    3/27


$275 per Attendee

 

CRE Lending 

Coach

 

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On-Site Training