Commercial Real Estate Lending: Cash Flow Analysis & Cap Rates

Dec 11, 2017 02:30pm -
Dec 11, 2017 04:30pm
(GMT-5)

Event Description

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 utilized in evaluating CRE cash flow.

This program covers the key variables and concepts for determining CRE cash flow and transaction-level stress-testing. 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 the updated cash flow to help update the underlying collateral as part of ongoing loan monitoring. Making the connection between updated cash flow and an updated value estimate involves a capitalization (cap) rate.

Covered Topics:

  • Cash flow or 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, demonstrated with a case example

Who Should Attend?

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.

REGISTRATION OPTIONS

If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.


Event Type:Webinar &/or On-Demand Link/CD
Early registration ends on Nov 03, 2017.
Regular registration starts on Nov 04, 2017 and ends on Dec 14, 2017.
Late registration starts on Dec 15, 2017.
(GMT-05:00) Eastern Time (US & Canada)

 

Registration Fees
Fee TypeEarlyRegularLate
 Live Webinar
Member Fee: $265.00$265.00$290.00
Non-Member Fee: $400.00$400.00$425.00
 Additional Hookups
Member Fee: $175.00$175.00$175.00
Non-Member Fee: $260.00$260.00$260.00
 On Demand Link & "FREE" CD Rom
Member Fee: $345.00$345.00$345.00
Non-Member Fee: $490.00$490.00$490.00
 Both Live & On Demand Link (Includes CD Rom)
Member Fee: $395.00$395.00$420.00
Non-Member Fee: $600.00$600.00$625.00