RMA’s Commercial Real Estate Lending Decision Process is a series of 3 interactive, web-based courses and an optional accounting refresher course that provides a comprehensive study of commercial real estate (CRE) lending, beginning with a description of CRE loan types and progressing to an understanding of the underwriting process, leases, appraisals, loan structures, and related risks.
Prerequisites: Assumes a basic knowledge of financial accounting and credit analysis. (An accounting refresher course is offered with this series to assist trainees in re-familiarizing themselves with the necessary skills.)
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.
Q & A / Feedback throughout the course. Mastery assessment at the end of the course.
Methodology: Unlike many courses on commercial credit and lending currently available, RMA’s Commercial Real Estate Lending Decision Process, offers:
• Scenario/application-based learning
• Active decision-making as opposed to passive learning
• Adaptability to the needs/skill level of each user
• Modular courses for flexibility in how/when users complete each course
- Underwriting – Basics
- Identify best practices for CRE underwriting
- Explore the component parts of the underwriting process
- Construct a basic CRE Cash Flow Statement for an office property
- Underwriting – Different Types of Commercial Properties
- Identify property characteristics and underwriting considerations
- Analyze key differences in income and expenses
- Explain gross vs. triple net rent structures
- Underwriting – Example Calculations
- Complete NOI calculations
- Calculate the value based on the cap rate
- Calculate LTV, DSC and supportable loan amounts
- Complete stress testing and sensitivity analyses