Attend the CRE Lending: Cash Flow, Cap Rates and Other Factors Seminar from the convenience of your own office or home via Live Streaming Video as it happens on Wednesday, June 23rd (9:00 am ‘ 4:00 pm Central Time), or at your own convenience with 6 months of OnDemand playback.
Banks continue to deal with commercial real estate (CRE) loans as a major portion of the loan portfolio. Also, many borrowers continue to hold significant amounts of income-producing or rental real estate on their balance sheets. Whether directly financing these assets or including the income stream(s) in your overall credit analysis, it is important to understand key analytical concepts in evaluating real estate cash flow and various non-financial factors. And with real estate markets evolving, with some property types performing better than others, it is important to use the updated cash flow analysis as a part of ongoing loan monitoring and updating of collateral values ‘ not in lieu of appraisals, but as interim and supplemental steps.
This program demonstrates the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing. It also explores where to find information from existing sources, such as tax returns, and what additional information may be needed, such as customer rent rolls.
CRE Lending: Cash Flow, Cap Rates and Other Factors Seminar OnDemand with Live Streaming has been submitted to ABA Professional Certifications for CE credit review and is pending approval. Once we receive notification of the credit approval, we will notify attendees.
- Net operating income (NOI) concepts
- Understanding key variables: vacancy, management fees and replacement reserves
- Capitalizing the NOI to estimate value (direct capitalization and cap rates)
- Using tax returns and customer rent rolls
- Unique characteristics of the major types of commercial real estate
- Stress-testing of debt service coverage (DSC) and determining break-even vacancy and interest rate
- How to use a simple worksheet to explore the major issues
- Recognizing other underwriting risks such as construction risk and lease overhang
- Tips for reviewing commercial leases and key items to look for
Who Should Attend?
Commercial lenders, private bankers, small business lenders, commercial lenders, credit analysts, consumer and mortgage lenders, loan review specialists, special assets officers, lending managers and credit officers.
Continuing Education (CE) Credits
This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.