Commercial Real Estate Lending
Underwriting CRE Loans
Full Day: 8:30 am to 4:30 pm
s CRE lending seminar provides attendees an understanding of how commercial banks approach underwriting sound commercial real estate loans. We review the primary credit concerns that lenders face in underwriting commercial real estate loans.
Sector Operating Characteristics
Attendees profile the general background of the commercial office, retail, multifamily, hotel and industrial sectors. We review sample operating statements and identify;
The common financial/accounting terms associated with each sector’s operating statement.
The source and determining factors affecting rental income, ancillary revenue & operating expenses.
The unique nature of each sector with regard to property management & fees, rental income, tenant leases, and specific operating costs.
Lending to Homebuilders
Attendees review how to evaluate the unique risks in lending to a local home builder. We cover a process for analyzing a builder’s financial statements, monitoring construction & avoiding common lender mistakes.
Construction Contractor Evaluation
We review the key elements that determine the credit worthiness of construction contractor;
· We outline a checklist for evaluating a contractor.
· The warning signs that may indicate higher risk. Why contractors typically fail.
· How to interpret the key ratios used in analyzing a contractor’s financials.
Real Estate Developer/ADC Loans
Acquisition, Development & Construction (ADC) loans represent unique risks to a lender. In this training section attendees;
· Outline the key areas of risk for ADC loans.
· The basics for evaluating a real estate developer.
· Warning signs of a higher risk developer.
Negotiating CRE Loans
We review the concerns and issues typically confronting lenders when negotiating & structuring CRE loans. Attendees learn to anticipate and prepare for issues typically arising from the following areas;
Tax & Insurance Escrow Accounts
Reimbursement of Lender’s Costs
Personal Property Collateral
Lender Approval & Consents
Tenant Deposits & Letters of Credit
Events of Defaults.
Partial Release Provisions
Reviewing Tenant Leases & Other Agreements
Tenant leases are a crucial part of determining cash flow from a CRE investment property. In the seminar, attendees learn when a lender should closely review tenant leases. We cover the following regarding tenant leases and other agreements;
The most important questions that should be answered when reviewing CRE tenant leases
Concerns specific to anchor tenant leases
When a lender should require that tenants provide Estoppel Certificates to the bank
Anticipating and preparing for issues when using a Non-disturbance Agreement
How to review a Ground Lease
What to look for in a Property Management Contract
CRE Loans in Distress/Default
Monitoring a financially distressed CRE loan
Practical steps in preparing for a potential default
Improving the bank’s position when restructuring a financially distressed commercial real
Locations to be announced
8:30 am to 4:30 pm
$250 per attendee
1/26/21 - 1/ 28/21 (Registration Closed)
2/9/21 - 2/11/21 (Registration Closes 1/29)
2/16/21 - 2/18/21 (Registration Closes 2/5)
3/2/21 - 3/4/21 (Registration Closes 2/19)
3/9/21 - 3/11/21 (Registration Closes 2/26)