Course Overview

Commercial Real Estate Lending I: Introduction provides credit analysts and commercial lenders with a basic understanding of commercial real estate lending concepts and techniques for income-producing properties. Topics include key loan repayment sources, formulating conclusions with respect to a property’s success, net operating income (NOI) and its components, the role of appraisals and environmental assessments, and characteristics or key elements of various property types.

     

Duration

7.5 hours

Delivery

Instructor-Led Online

Program Level

Foundational

 

Prerequisites

This course has no prerequisites and is part of a series of courses focused on Commercial Real Estate (CRE) lending.

 

 

Who Will Benefit?

Individuals new to the commercial real estate lending process, including commercial and industrial (C&I) lenders, commercial real estate (CRE) lenders, commercial loan portfolio managers, commercial loan review officers, credit analysts, bank regulators.

   

Learning Objectives

Upon completion of this course, participants will be able to:

• Identify general characteristics attributable to basic types of commercial real estate loans.
• Evaluate various risk components associated with commercial real estate lending.
• Construct a cash flow analysis framework that leads to an accurate assessment of a commercial real estate project’s loan repayment ability.
• Identify basic steps required to comply with real estate appraisal and environmental site assessment requirements.
• Identify types of commercial real estate properties and key underwriting characteristics specific to each.
• Analyze a specific commercial real estate loan request using a “best practices” approach.

Methodology:

Through a mix of lecture, small group activities, and case studies, participants are better prepared to apply the content learned when they return to their jobs. The following cases are described in Commercial Real Estate Lending I: Introduction:

• Medical Associates. Inc. is a practice specializing in plastic and reconstructive surgery with a $800,000 loan request to fund construction of a surgical center. Dr. Patrick will also ask for a $50,000 increase in his personal line of credit and he estimates the need to purchase another $100,000 in equipment.
• Action Legal Clinic Case is a new arm of a large regional law firm, requesting a $2.1 million office building loan. The assignment is to complete an income property cash flow worksheet including a sensitivity analysis component.