Commercial Real Estate Lending teaches your lenders how to use the Omega Performance Real Estate Lending Decision Strategy™ to thoroughly evaluate investment real estate financing opportunities.
Instruction begins with an eight-module eLearning course that focuses first on the simple and complex real estate ownership structures that lenders may encounter, and then on the types of properties that may serve as collateral in commercial real estate deals.
As they study primary and secondary repayment sources, participants also learn how to:
- Calculate existing and stabilized net operating income,
- Determine debt service coverage, debt yield, and maximum supportable loan amount,
- Determine value and loan-to-value based on market conditions and a property’s net operating income, and
- Conduct a global financial assessment of the borrower and related parties.
Once they’ve completed their study of loan analysis, participants learn how to properly document and manage a commercial real estate loan.
A final module specific to construction lending is also included.
Upon successful completion of the eLearning course, participants are eligible to attend Commercial Real Estate Lending: Skills Application Lab, a two-day, facilitated event where they evaluate loan opportunities involving two different types of commercial properties.
Day 1’s borrower plans to purchase an office-warehouse building in an industrial complex; Day 2’s borrower is hoping to take advantage of below-market pricing on a neighborhood shopping center where the major tenant has exercised a “go-dark” provision in its lease. Using rent rolls, appraisals, and current and projected financial information, participants determine whether each property’s projected net operating income is reasonable and sufficient to cover debt service and whether the loan-to-value is adequate.
Participants also must formulate and justify a recommended loan structure. On Day 2, as they prepare to present their structures, they are challenged with a last-minute “curve ball” (similar to the kind they’d encounter on the job) that could impact their proposals.
U.S. GAAP / USPAP