Real Estate Banking

Real Estate Banking


  • Commercial Real Estate Lending
Commercial Real Estate Lending
Course Overview This training provides a comprehensive view of underwriting when lending on income property. This session provides analytical and diagnostic tools useful for understanding:

  • Real estate finance vocabulary
  • Net operating income, debt service coverage ratios, debt yield and loan-to-value concepts in determining appropriate loan amounts 
  • Value in analyzing a rent roll and tenant credit risk characteristics 
  • Capitalization rates in determining property values
  • Appraisals used in the loan approval process
  • Real estate loan structure decision process, including the use of covenants and other protective features useful to the bank lender
  • Basics of construction lending
  • Importance of scheduling property visits and site inspections
Target Audience Entry level commercial real estate credit analyst, underwriter, or relationship manager
Duration 2 days

  • Analyzing Real Estate Sponsors & Guarantors
Analyzing Real Estate Sponsors & Guarantors
Course Overview The real estate investor/ deal sponsor is an important facet of making a successful real estate loan. This training covers techniques for understanding the true credit value of a real estate guarantor, and an evaluation of the sponsor’s overall integrity and creditworthiness.  Topics include:

  • Personal financial statements of the sponsor and their investments
  • “Peeling away” of different asset classes presented by the sponsor, with a detailed examination of true asset values and cash flow
  • Analysis of sponsor’s liabilities and contingent liabilities 
  • Testing of actual cash flow of sponsor investments, including a detailed examination of the “waterfall” often present in real property investments
  • Overall real estate portfolio evaluation
  • Comprehensive risk assessment of sponsor’s financial strength
Target Audience Entry level commercial real estate credit analyst, underwriter, or relationship manager 
Duration 1 day

  • Lending to Owner-Occupied Real Estate
Lending to Owner-Occupied Real Estate
Course Overview This training is designed to help participants make more informed underwriting decisions when underwriting owner-occupied real estate loans. The session emphasizes the need for sound underwriting of the owner occupant, and further emphasizes aspects of real property finance which must be considered when making an owner-occupied real property loan, including examination of the appraisal from the perspective of the bank lending officer. 

The real property underwriting concepts presented in the session include an explanation of net operating income (NOI) calculation, including replacement reserves and management fees, debt service coverage ratio and debt yield minimums, and loan-to-value parameters. 

While there is an emphasis on sound real property credit underwriting principles, equal weight is given to structuring and underwriting techniques designed to monitor existing loans secured by real property, particularly owner-occupied real property loans. Further analysis of scenarios where real property has inadvertently become the primary source of repayment will also be examined.

Target Audience Any credit analyst, underwriter, relationship manager or other lending staff involved with real estate as a secondary source of repayment
Duration 1 day 


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Paragon Hill

Paragon Hill. specializes in the development, design and instruction of training programs for lending professionals at domestic and international banks.