This series of three interactive, web-based courses examine the components and best practices of CRE underwriting.
Produced by the Risk Management Association
- Underwriting Basics
- Underwriting Different Types of Commercial Properties
- Underwriting Example Calculations
There are three courses included in the Commercial Real Estate Lending Decision Process (Underwriting Bundle). Approximate time to complete all courses and modules in the bundle is four to five hours.
What You’ll Learn
After completing this course, students will be able to:
- Determine best practices for CRE underwriting, explore the component parts of the underwriting process and construct a basic CRE Cash Flow Statement for an office property.
- Identify property characteristics and underwriting considerations, analyze key differences in income and expenses and explain gross vs. triple net rent structures.
- Complete NOI calculations, calculate the value based on the cap rate, calculate LTV, DSC, supportable loan amounts and complete stress testing and sensitivity analyses.