DeliverShockproof! Training Yourself, and upcoming events
Income
Producing Properties
Self-Study $300
Online Classroom (Webinar Instructor) $395
understanding
the appraisal report,
the investor, and
the deal
Target
Audience
This
course is for both relatively
new commercial real estate
analysts and lenders as
well as for experienced
analyst and lenders who
need to enhance their analytical
capabilities and fields
of awareness in reaching
a credit decision about
income producing properties.
Explore
the components, derivation,
and application of the
cap rate;
Understand
and appreciate the benefits
and limitations of the
sales comparison approach
to valuation;
Understand
and appreciate the benefits
and limitations of the
income capitalization
approach to valuation;
Examine
the use of break-even
analysis in understanding
the sensitivity of critical
net operating income drivers
to market events;
Apply
underwriting standards
to proposed financing
for an income producing
property;
Assess
the likely value of a
personal guarantee;
Fully
appreciate the equity
investor's rate of return
in assessing the underlying
reason for the investment
decision; and
Review
and examine several key
documents that are critical
in assessing the quality
of the subject property,
the lender's access to
the subject property in
the event of default,
and the lender's access
to the stream of income
from the subject property
in the event of default.
Course
Materials
Credit Refresher
on Cap Rates and Lending
Decisions
Commercial Real Estate
Terms and Concepts
Adobe Plaza Appraisal
Report
Assignment
of Rents
Commitment
Letter from Old San Jose
Bank & Trust
Environmental
Risk Questionnaire for
Adobe Plaza
Estoppel
Certificate
Excerpts
from Preliminary Title
Report
Rent
Roll for Adobe Plaza
Standard
Office Lease
Subordination,
Non Disturbance and Attornment
Agreement
2004
Personal Financial Statements
for Guarantor, Jeremiah
Zeltig
Exercise
Set (downloaded from Shockproof!
Training website)
Online
Review Quizzes
Solution Set (downloaded
from Shockproof!
Training
website)
Access
to the Shockproof!
Training
Resource Center
Inclusion in the Shockproof!
Training Discussion
Forum
Online Credit Skills
Proficiency Exam
Upon
Completion
Participants who successfully
complete the workshop will
be able to:
Understand
the form, structure, and
objective of the appraisal
report and the relevant
information sources and
expertise that are critical
to its ultimate value
for the lender in making
a lending decision;
Understand
the cap rate, its derivation,
and common pitfalls in
establishing its value
for application in the
market valuation process;
Understand
the benefits and limitations
of the sales comparison
and income capitalization
approaches to establishing
market value for and income-producing
property;
Understand
how to use break-even
analysis in assessing
the ability of an income-producing
property's net operating
income to withstand adverse
market pressures that
impact vacancy levels,
rental rates, and applicable
interest rates;
Understand
and apply loan-to-value
and debt service coverage
underwriting standards
in making a credit decision;
Understand
the importance and value
of properly assessing
the likely financial strength
of a guarantee in assessing
a secondary source of
repayment;
Estimate
the equity investors'
likely rate of return
from the subject property's
cash flow stream in the
process of understanding
the reasons behind the
investment decision; and
Fully
understand and appreciate
the information, evidence,
and documents necessary
to identify the quality
of the income-producing
property, the lender's
access to the income-producing
property in the event
of default, and the lender's
access to the stream of
revenue from the income-producing
property in the event
of default.
How
to Order
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