CRE Appraisals 2:Nuts & Bolts: The Approaches to Value in a CRE Appraisal, Including Cap Rates
An important part of the commercial real estate (CRE) lending process is the review and interpretation of the property appraisal.
This series covers the major issues involved in reviewing and using CRE appraisals.
This session covers fundamental principles and features of CRE appraisals, as well as the primary analytical techniques, such as net operating income (NOI) for basic, income-producing properties.
This webinar pairs with Overview of CRE Appraisal Guidelines & the Review Process on December 12
- Types of appraisals by format (appraisal reports and restricted appraisal reports)
- What to look for within the assumptions and limiting conditions
- Ownership interests clarified (fee simple, leased fee, etc.)
- Highest and best use
- Approaches to value
- How the cost approach works and key information you can use in the underwriting process
- Net operating income (NOI) concepts and understanding key variables: vacancy, management fees and replacement reserves
- Capitalization (cap) rates explained from two approaches
- Sales comparables and how you must move beyond the residential mindset
- Reconciliation of value and value conclusion
CRE lenders, commercial lenders, credit analysts, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers, credit officers and CRE support personnel.
Richard Hamm has been training bankers for 25 years, specializing in all phases of commercial lending and credit, including portfolio and risk management, commercial real estate and appraisals, plus selling and negotiating skills. He has also been involved in director training, loan policy formation, bank formation and strategic planning. He owns/ operates Advantage Consulting &Training after a 22-year banking career including senior positions in lending and credit.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours/session
Member price: $275.00 | Non member price $550.00
Member price: $295.00 | Non member price $590.00
Online: Visit the CBA Webinar Catalog
Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)
- 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.