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
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
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