GSB Monitoring & Updating Real Estate Values: Using Real Estate Cash Flow & Other Resources Beyond Initial Underwriting

$555 Tuesday, November 27, 2018 8:30 AM Register

The downturn in commercial real estate (CRE) a few years ago continues to challenge banks to strengthen their monitoring of existing CRE credits. While many renewal situations will require a new appraisal of the property’s value, bankers have other, equally effective tools to do the job more frequently and at less cost for CRE loans where renewal is not occurring – just as we do for loans with other types of collateral (think of updated, aged listings of accounts receivable, for instance). This program covers the important steps involved in effectively monitoring CRE loans and the tools needed to update values – not in lieu of a new appraisal, but as interim and necessary steps over the life of the loan.

Topics to be addressed in this program include:

  • Review of basic valuation technique (direct capitalization) and its variables and components
  • Discounted cash flow (another valuation technique) and residential subdivisions
  • Valuation sensitivity
  • Reviewing leases, various considerations 
  • Cash flow aspects
  • Legal and business issues
  • Lender issues
  • Extraordinary lease arrangements and four-step process to assess effect on CRE value
  • Loan structuring tools for protecting cash flow
  • Organizing your “game plan” for addressing the entire portfolio

Target Audience: Commercial lenders, credit analysts and support staff that deal directly with CRE loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the CRE lending process

Presenter: Richard Hamm, Advantage Consulting & Training

$555 Tuesday, November 27, 2018 8:30 AM Register