COMMERCIAL REAL ESTATE FINANCING - Stringham Tools/Financing Commercial...COMMERCIAL REAL ESTATE FINANCING I. COMMERCIAL REAL ESTATE LENDERS ... United States Small Business Administration-SBA 3.

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  • 2012 Stringham Schools

    COMMERCIAL REAL ESTATE FINANCING

    I. COMMERCIAL REAL ESTATE LENDERS

    To include a discussion regarding the various sources of financing, the benefits,

    disadvantages, general conditions of use and cost associated with each alternative.

    1. Commercial Banks 2. Mortgage Brokers 3. Mortgage Bankers 4. Insurance Companies 5. Sellers 6. Private Investors

    II. TYPES OF COMMERCIAL REAL ESTATE LOANS

    This segment will address the different type commercial property lending

    alternatives and the unique structures associated with each and the difference in

    pricing.

    1. Raw Land 2. Acquisition & Development 3. Construction 4. Permanent

    III. BORROWER CONCERNS AND ISSUES

    In this session we will address the process required to develop a loan request

    package that adequately addresses the various issues of concern to the lender;

    including risk, risk mitigation, strength of the borrower and the project.

    1. Borrower Entity 2. Principal(s) 3. Risk Mitigation 4. Financial Information 5. Business Plan

    IV. UNDERWRITING POLICIES & PROCEDURES

    This session will address those risk assessment and credit underwriting criteria,

    which enables the lender to evaluate the borrower and the probability of default

    associated with the transaction.

    1. Loan amount by property type 2. Loan terms 3. Pricing structure 4. LTV by property type 5. Feasibility study 6. Minimum requirement for borrowers initial investment 7. Minimum standard for borrowers net worth, cash flow & debt coverage ratio

  • 2012 Stringham Schools

    V. PROPERTY CONCERNS AND ISSUES

    To include a review of the different characteristics of commercial real estate and

    how these differences impact the lenders perception of risk the availability of

    financing.

    1. Location 2. Size 3. Features 4. Prior use 5. Intended use 6. Cost 7. Value 8. Surrounding area

    VI. GOVERNMENT PROGRAMS

    To include a brief discussion of the various government credit enhancement

    programs to include a review of the cost and benefits of each program.

    1. Industrial Development Bonds-IDA 2. United States Small Business Administration-SBA 3. Rural Development Agency-USDA

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