Commercial Real Estate Lending III: Global Cash Flow

Site Information:
Western State Bank-Admin Building
825 13th Ave E
West Fargo, ND  58078

Co-Sponsored by the North Central Chapter.

Event Date & Time:
Monday, May 20, 2024 8:30AM - 5:00PM CT

Understanding the risks inherent in real estate lending

Course Overview
Commercial Real Estate Lending III: Global Cash Flow teaches participants how to determine the probability of loan repayment on real estate transactions where the owner/investor has multiple investment real estate holdings, with varying degrees of ownership interest. Find out how to gather relevant sources of cash flow information, and how to assemble that information in a clear and organized fashion in an effort to effectively analyze global cash flow implications on CRE loan repayment. Through a mix of small group activities, case studies, and active discussions, participants are better prepared to apply the content learned when they return to their jobs.

OBJECTIVES
Upon completion of Commercial Real Estate Lending III: Global Cash Flow participants will be able to: 

Calculate projected cash flows and gauge potential real estate portfolio risk
Identify a global cash flow model appropriate for investment real estate
Identify income and expense components and relationships to create a cash flow for a CRE property
Identify how tax returns are used for a property analysis
Compare strengths and weakness of tax returns, operating statements, pro-formas and market data in determining cash flow sufficiency
Demonstrate how variances in real estate markets and leasing structures can threaten global portfolio cash flow
Construct an investor portfolio summary to measure overall performance and potential risks
Construct and evaluate global cash flow and debt service where minority ownerships are involved
Identify how interrelated cash flows may affect and distort CRE performance measurements
Commercial Real Estate Lending III: Global Cash Flow is designed primarily for small business and real estate lenders who lend to customers with investment portfolios of small to medium size non-owner occupied real estate properties. These holdings may also include properties that house their operating businesses. Lenders and analysts who need to evaluate the risks of borrowers with investment real estate portfolios as part of their lending or loan review process will benefit from this course.

It is expected that participants have a basic understanding of cash flow, federal income tax returns, and basic real estate underwriting terminology, practices, and concepts: e.g. ratios, investment property rent rolls, and lease agreements. Therefore, this course assumes that participants have completed the following RMA courses, or have the equivalent experience:
Global Cash Flow I: Foundations in Global Cash Flow Concepts
Analyzing Business Tax Returns
Analyzing Personal Financial Statement and Tax Returns
       and
Commercial Real Estate Lending I: Introduction
Commercial Real Estate Lending II: Underwriting
       or 
Real Estate Lending Academy