Commercial Real Estate Financing: Current Trends & Opportunities
1 hour 30 minutes
Understand the uses and limitations of seven different sources of financing for real estate projects.
The COVID-19 pandemic has made financing commercial real estate projects difficult. It is hard to find the right lender with the right loan package, and failure to obtain appropriate financing can be the death of a project. This material will help you identify the various types of financing which are available, from conventional bank financing to specialty financing such as SBA loans and IRS Section 42 tax credit financing. It will also review alternatives to third-party financing, such as joint ventures with landowners.
Learn what lenders look for in evaluating a borrower and a project, such as credit strength of borrowers and guarantors, loan-to-value ratios, and debt-service coverage ratios. This material will review the documents and procedures typically used in commercial real estate financings and their functions. You will also obtain an overview of the current real estate market, from declining segments to emerging opportunities.
• You will be able to define concepts lenders use to evaluate real estate projects, such as loan-to-value ratios and debt service coverage ratios.
• You will be able to describe the procedure for a typical real estate financing, including due diligence procedures and closing documents.
• You will be able to identify at least seven different sources of financing for real estate projects, their uses, and limitations.
• You will be able to recognize the segments of the U.S. real estate market which are currently declining and the areas which are emerging and profitable.