Series 5: Loan Structure and Documentation Considerations


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 assess various borrowing structures, identify issues involving owner occupied lending, determine loan documentation and due diligence considerations and to identify key components of CRE Loan structure.


Duration: Approximately 3.5 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 strategic advantages and disadvantages of various forms of business ownership
  • Identify the primary tax returns used for each borrowing entity and the sections that provide valuable financial information for loan underwriting
  • Identify the ways cash moves among business entities
  • Identify the decision-making process for an owner-occupant when either purchasing or leasing a building
  • Identify repayment sources, their hierarchy, and their co-dependence for owner-occupied loans
  • Determine how to structure owner-occupant loans to address unique attributes such as holding company structure, property condition, and valuation issues
  • Identify key elements in the SBA 504 program to finance owner-occupied real estate
  • Identify the key instruments necessary to document a loan transaction and perfect a lien on collateral
  • Identify organizational documents required for various entity forms and execution requirements
  • Recognize key elements of due diligence to be submitted and reviewed prior to closing
  • Evaluate and interpret the findings of a title policy
  • Identify key components of CRE loan structure
  • Demonstrate the use of loan covenants and other techniques to protect property cash flow and property value
  • Identify how permanent market pricing and loan structure differs from and influences the traditional bank market


The courses included in Series 5: Loan Structure and Documentation Considerations Curriculum are:

  • CRE-LDP 5.1 – Borrowing Structures and Owner-Occupied Properties
  • CRE-LDP 5.2 – Documentation, Due Diligence, and Loan Structure