Presenter: Richard Hamm, Advantage Consulting and Training
This 90-minute program will be presented live on: April 11, 2023 – 1:00-2:30 p.m. CT
Recording available through: July 11, 2023
Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. This program provides an overview of the key issues involved in analyzing and underwriting commercial construction loans and assessing the risk involved.
In a sense, the underwriting is a mix of (a) CRE project viability, (b) sponsor analysis and (c) construction feasibility. Further, the underwriting is difficult due to several unknowns. First, usually there is no historical operating information. Second, the developer/sponsor may have a number of other projects under construction or in the pipeline. Third, many property types do not get significant pre-leasing prior to or during construction. Finally, the developer may not have selected or engaged a contractor, or other key steps in the construction process may not have been finalized prior to bank underwriting.
Topics to be covered:
Target Audience: Commercial lenders, credit analysts and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the construction lending process