Series 3: Financing Different Types of Commercial Properties
The Commercial Real Estate Lending Decision Process and the courses in the curriculum are products of The Risk Management Association.
The purpose of this series is to help the student identify and define important credit risk considerations for major property groups and special properties. In addition students will identify and compare components used in reporting statements for various income properties, estimate rental income using various approaches and create pro forma operating statements.
Duration: Approximately 2.5 hours.
Audience: Commercial lenders and credit analysts who are not real estate specialists but who need to know more about assessing real estate risk.
Learning Objectives: After completing this course, students will be able to:
- Identify the key characteristics of and differences between the major types of commercial properties
- Identify the key terminology and underwriting considerations for each property type
- Identify the key characteristics of and differences among specialized properties
- Identify the key terminology, underwriting considerations, and documentation for each property type
- Identify and compare income and expense components for different types of commercial property
- Identify and compare operating statement formats that use varying methods of calculating and reporting on real estate projected income
- Calculate: NOI from Schedule E tax returns, monthly rent payment from percentage rents and CAMs, and effective rents from differing scenarios
- Calculate income property pro forma cash flow on as-is and as-stabilized basis from qualitative and quantitative information sources
The courses included in Series 3: Financing Different Types of Commercial Properties Curriculum are:
- CRE-LDP 3.1 – Understanding the Various Property Types
- CRE-LDP 3.2 – Understanding Property Cash Flows