Webinar

Advanced Cash Flow Analysis: Part 1 – Commercial Real Estate Cash Flow: More than EBITDA and DSC

This program introduces (from case studies) the key variables and concepts for determining real estate cash flow and transaction-level stress-testing.

Banks continue to deal with commercial real estate (CRE) loans as a major portion of their loan portfolios. Also, many borrowers still have large holdings of income-producing or rental real estate. 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 commercial real estate cash flow. We’ll learn that CRE cash flow involves more than earnings before interest, taxes, depreciation and amortization (EBITDA) for a debt service coverage (DSC), and that we should be using it to help update underlying collateral value.

Highlights

  • Net operating income (NOI) concepts
  • Understanding key variables:  vacancy, management fees and replacement reserves
  • The missing link: Using NOI along with a cap rate to estimate current property value
  • Moving from NOI to cash flow available for debt service (CFADS) and DSC
  • Stress-testing of debt service coverage (DSC) and loan-to-value (LTV) at transaction level
  • How to use a sample worksheet to explore the major issues, including stress-testing

Audience

Commercial lenders, credit analysts and small business lenders; consumer lenders, mortgage bankers and private bankers; loan review specialists, special assets officers, lending managers and credit officers.

Speaker

Richard Hamm, Advantage Consulting &Training

Credit Information

Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours/session CLBB

Pricing

Live Webinar:

Member price: $265.00 | Non member price $530.00

On-Demand Webinar

Member price: $280.00 | Non member price $560.00

Registration

Online: Visit the CBA Webinar Catalog

Mail: Click here and mail completed form with check payable to ConferenceEdge to: (Mail at least 10 days prior to event)

ConferenceEdge
1516 Xavier St., Ste 500, Denver, CO 80204

Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)

Please Note:

  • Preferred Payment Method: Online
  • Please register online or by phone when paying with a credit card
  • Payment Must Accompany Registration – Invoices are Not Provided

Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.

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