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.
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.
We review the fundamentals of CRE lending.
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
|Seminar meets from 9:00 am to 5:00 pm||(Central Time)|
|Session||Advance Financial Analysis|