CRE Appraisals: Appraisal Components, Approaches to Value and Cap Rates
Course Number: Webinar
Course Code: n/a
Fundamental principles and features and CRE appraisals are covered.
-Types of appraisals by format
-What to look for within the assumptions and limiting conditions
-Property ownership interests clarified (fee simple, leased fee, etc.)
-Highest and best use of the property
-Approaches to value
Cost approach and information useful in the underwriting and loan structuring process
Income approach options of discounted cash flow (DCF) and direct capitalization, with the steps to building net operating income (NOI) and the cap rate used in direct capitalization
Comparables and the key issue to consider when selecting and evaluating comps
Reconciliation of value
Audience: CRE lenders, commercial lenders, credit analysts, portfolio managers, community bankers, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers, credit officers and CRE support personnel.