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2 Day Commercial Real Estate Seminar OnDemand with Live Streaming

This program demonstrates the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing.

Live Stream
June 23, 2021
June 24, 2021
Presented by Richard Hamm
7h total length
7 CEU Credits
$1,889.00 or 8 Tokens

Includes: Access the recording for 12 months.

  • Lending
  • Branch Manager
  • Commercial Lender
  • Consumer Lender/Retail Banker
  • Credit Analyst
  • Loan Closer
  • Loan Operations Manager/Specialist
  • Mortgage Lender
  • Private Banker
  • Small Business Lender

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Series Details

CRE Lending: Cash Flow, Cap Rates and Other Factors Seminar OnDemand with Live Streaming

This program demonstrates the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing.

  • Net operating income (NOI) concepts
  • Understanding key variables: vacancy, management fees and replacement reserves
  • Capitalizing the NOI to estimate value (direct capitalization and cap rates)
  • Using tax returns and customer rent rolls
  • Unique characteristics of the major types of commercial real estate
  • Stress-testing of debt service coverage (DSC) and determining break-even vacancy and interest rate
  • How to use a simple worksheet to explore the major issues
  • Recognizing other underwriting risks such as construction risk and lease overhang
  • Tips for reviewing commercial leases and key items to look for

CRE Appraisals: Reviewing & Interpreting Seminar OnDemand with Live Streaming

This program covers the major issues of the entire appraisal process, including a brief review of selecting and engaging a qualified appraiser, but focuses more on reviewing the report for integration into the overall credit analysis.

  • Why review appraisals? (Beyond regulatory requirements)
  • Types of reviews
    • Administrative/compliance
      • 14 review points from FIRREA
      • What is FIRREA? (and other current regulatory guidelines, including latest appraisal guidelines issued in 2010 and FAQs issued in 2018)
      • The five minimum standards (derived from FIRREA), and what they really mean
      • Partial exemptions, full exemptions and minimum standards for the report
      • A sample compliance review checklist
    • Technical/internal (and typical commercial appraisal sections)
      • Letter of transmittal
        • Appraiser qualifications
        • Types of appraisals by scope (2006 scope of work rule that revised old definitions of complete and limited)
        • Types of appraisals by format (2014 revisions to old definitions of self-contained, summary and restricted use)
      • Assumptions and limiting conditions
      • Property identification and ownership interest
        • Unique characteristics of the major types of real estate, and how these affect the appraisal
      • Approaches to value
        • How the cost approach works
        • The direct capitalization method for the income approach: net operating income (NOI) concepts and understanding key variables of vacancy, management fees, replacement reserves and capitalization (cap) rates
        • Direct sales comparison
      • Reconciliation of values and value conclusion
      • A sample technical review checklist
    • Outside/third party
      • How appraisers self-regulate via the Uniform Standards of Professional Appraisal Practice (USPAP) and state licensing
      • Getting another appraiser to do the review under USPAP 3 guidelines and sample review comments
  • Appraisal review outcomes: When to request revisions
  • Using your analysis to validate existing or older appraisals, with a suggested format for documenting your conclusions

Content

Day 1: CRE Lending: Cash Flow, Cap Rates and Other Factors Seminar - Wednesday, June 23rd

  • Net operating income (NOI) concepts
  • Understanding key variables: vacancy, management fees and replacement reserves
  • Capitalizing the NOI to estimate value (direct capitalization and cap rates)
  • Using tax returns and customer rent rolls
  • Unique characteristics of the major types of commercial real estate
  • Stress-testing of debt service coverage (DSC) and determining break-even vacancy and interest rate
  • How to use a simple worksheet to explore the major issues
  • Recognizing other underwriting risks such as construction risk and lease overhang
  • Tips for reviewing commercial leases and key items to look for

Day 2: CRE Appraisals: Reviewing & Interpreting Seminar - Thursday, June 24th

  • Why review appraisals? (Beyond regulatory requirements)
  • Types of reviews
    • Administrative/compliance
      • 14 review points from FIRREA
      • What is FIRREA? (and other current regulatory guidelines, including latest appraisal guidelines issued in 2010 and FAQs issued in 2018)
      • The five minimum standards (derived from FIRREA), and what they really mean
      • Partial exemptions, full exemptions and minimum standards for the report
      • A sample compliance review checklist
    • Technical/internal (and typical commercial appraisal sections)
      • Letter of transmittal
        • Appraiser qualifications
        • Types of appraisals by scope (2006 scope of work rule that revised old definitions of complete and limited)
        • Types of appraisals by format (2014 revisions to old definitions of self-contained, summary and restricted use)
      • Assumptions and limiting conditions
      • Property identification and ownership interest
        • Unique characteristics of the major types of real estate, and how these affect the appraisal
      • Approaches to value
        • How the cost approach works
        • The direct capitalization method for the income approach: net operating income (NOI) concepts and understanding key variables of vacancy, management fees, replacement reserves and capitalization (cap) rates
        • Direct sales comparison
      • Reconciliation of values and value conclusion
      • A sample technical review checklist
    • Outside/third party
      • How appraisers self-regulate via the Uniform Standards of Professional Appraisal Practice (USPAP) and state licensing
      • Getting another appraiser to do the review under USPAP 3 guidelines and sample review comments
  • Appraisal review outcomes: When to request revisions
  • Using your analysis to validate existing or older appraisals, with a suggested format for documenting your conclusions

Attend the Commercial Real Estate Seminar OnDemand with Live Streaming from the convenience of your own office or home via Live Streaming Video as it happens on Wednesday, June 23rd and Thursday, June 24th (9:00 am – 4:00 pm Central Time), or at your own convenience with 6 months of OnDemand playback.

Want to get a comprehensive look at CRE lending and appraisals in a two-day program? Here it is. The first day will cover key analytical concepts in evaluating real estate cash flow and related non-financial factors or risks. It also explores where to find information from existing sources, such as tax returns, and what additional information may be needed, such as customer rent rolls. We’ll demonstrate stress-testing of your cash flow results, plus how to use a capitalization (cap) rate along with those results to make an important estimate of current value. As a final step, we’ll cover key issues with commercial lease structures.

The second day is devoted to reviewing and interpreting property appraisal. Fundamental principles and features of commercial appraisals are covered, as well as the primary analytical techniques such as net operating income (NOI) for basic, income-producing properties. This class will also provide an overview of the 2010 Interagency Appraisal and Evaluation Guidelines and the 2018 Frequently Asked Questions on the Appraisal Regulations and the Interagency Appraisal and Evaluation Guidelines, with tips for integrating the Guidelines and FAQs into your existing policies, plus other practical issues that banks face, including a brief look at high volatility CRE (HVCRE).

The "Commercial Real Estate Seminar OnDemand with Live Streaming" has been approved for 7 CERP credits. Credits are redeemable for Live attendance only. Users must connect to the streaming individually and enter their name and email for reporting purposes. Accreditation is valid for one year from the date of the event. To receive a certificate, email Streaming@ttsTrain.com.

Who should attend

CRE lenders, commercial lenders, credit analysts, mortgage lenders, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers involved in the CRE lending process. Also intended for support personnel involved in the ordering and reviewing of commercial appraisals.


Richard Hamm

Instructor Bio

Richard Hamm has been training bankers for 28 years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training. He also conducts eight senior lender forums on a periodic basis in multiple states and one series at the national level.

He is based in Huntsville, AL and has owned/operated Advantage Consulting & Training for 14 years, after a 22-year banking career including senior positions in lending and credit, plus president of a community bank through formation and acquisition of an existing bank. He has BS and MBA degrees from the University of Alabama.


Credit Information

Recommended for 7 CEU Credit Hours. After attending this webinar, each attendee can receive a Certificate of Attendance for self-reporting of CEU Credits.