Real Estate Lending Academy
Real Estate Lending Academy provides a comprehensive discussion of issues encountered in commercial real estate (CRE) lending, with the role of the bank in shaping CRE loan performance as a central theme. The course introduces the "CRE underwriting framework" as a best practice for bank loan decisions, and examines how a bank can use loan structure, documentation, due diligence, and policy governance to help mitigate enterprise risk.
Participants should have completed RMA's introductory real estate course or have equivalent experience.
Who Will Benefit?
Commercial lenders and credit analysts who are not real estate specialists but who need to know more about assessing real estate risk.
Upon completion of this course, participants will be able to:
- Recognize and evaluate the various risk areas involved in CRE loans.
- Evaluate and underwrite CRE project cash flow and loan repayment sources.
- Apply a risk management framework to create and present a critical credit analysis for a specific project.
- Identify best practices for evaluation, structure, and monitoring of CRE loans.
Each module uses exercises and case studies to demonstrate the concepts presented throughout the course. The main case study is about William Firestone and Frank Verdun, who are applying to finance the purchase of a 30-unit apartment building. The purchase would be the second joint project for the two individuals, who created a new entity (Firedun, LLC) for the purchase of a small apartment building last year. In order to keep the investments separate, the borrowers will be creating a new LLC to take ownership: Firedun II, LLC. Relying on market data, property analysis, appraisal results, personal financial statements, tax reports, and borrower analysis, learners will develop a credit analysis and loan recommendation for the loan request.