Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package

Book description

A practical guide to commercial real estate finance and commercial mortgages.

Table of contents

  1. Contents (1/2)
  2. Contents (2/2)
  3. Acknowlegments
  4. Introduction (1/3)
  5. Introduction (2/3)
  6. Introduction (3/3)
  7. Chapter 1: An Introduction to Commercial Real Estate Loans
    1. What Is a Commercial Mortgage?
      1. “Mortgage” Defined
      2. “Commercial” Defined
    2. Types of Commercial Properties
      1. Non-Income-Producing Properties
      2. Income-Producing Properties
      3. Single-Tenant Properties
      4. Multitenant Properties
    3. Types of Commercial Real Estate Lenders
      1. Banks
      2. Life Insurance Companies
      3. Conduit Lenders
      4. Agency Lenders
      5. Credit Companies
      6. Mortgage Bankers
      7. Private Lenders
      8. Commercial Mortgage Terms
      9. Maturity Period
      10. Amortization Period
      11. Loan-to-Value Ratios
      12. Interest Rates
      13. Prepayment Penalty
      14. Recourse vs. Nonrecourse Loans
    4. Commercial Mortgage Underwriting
      1. Sponsorship
      2. Property Underwriting (1/2)
      3. Property Underwriting (2/2)
      4. Final Underwriting Analysis
  8. Chapter 2: Preparing the Loan Request Package
    1. Executive Summary
      1. Purpose of Loan Request
      2. Sources and Uses
      3. Property Description and Location
      4. Financial Summary
      5. Borrower
    2. Property Description
    3. Location and Demographics
    4. Property Economics
      1. Financial Statements
      2. Financial Analysis
      3. Schedule of Income
      4. Historical Cash Flow
      5. Loan Analysis (1/2)
      6. Loan Analysis (2/2)
      7. Supporting Documents
    5. Market and Submarket Data
    6. Sponsorship
  9. Chapter 3: Financial Strength and Creditworthiness
    1. Net Worth and Liquidity
      1. Assets
      2. Non–Real Estate Assets
      3. Real Estate Assets, Cash Equity, and Market Equity
      4. Cost vs. Market Value
      5. Pre-Funding Liquidity
      6. Post-Funding Liquidity
      7. Lender’s Calculation of Net Worth and Pre-Funding and Post-Funding Liquidity (1/2)
      8. Lender’s Calculation of Net Worth and Pre-Funding and Post-Funding Liquidity (2/2)
    2. Credit Score and History
      1. Five Adverse Conditions Unacceptable to a Commercial Lender (1/2)
      2. Five Adverse Conditions Unacceptable to a Commercial Lender (2/2)
    3. Personal Income and Cash Flow
      1. Gross Income
      2. Self-Employment Income
      3. Net Cash Flow and Taxable Net Cash Flow from Rental Income
      4. Cash Flow Statement
    4. Banking and Credit References
  10. Chapter 4: Real Estate Experience
    1. Ownership and Management Experience
      1. Ownership Experience
      2. Management Experience (1/2)
      3. Management Experience (2/2)
  11. Chapter 5: Real Estate Assets
    1. The REO Schedule
    2. The REO Schedule and the Balance Sheet (1/2)
    3. The REO Schedule and the Balance Sheet (2/2)
    4. Anatomy of an REO Schedule
    5. Property Value Section
      1. Property Name
      2. Property Description
      3. Property Address
      4. Date of Acquisition
      5. Original Cost of the Property
      6. Name and Address of Lender
      7. Loan Number
      8. Ownership Percentage
      9. Market Value of the Property
      10. Balance of Mortgages
      11. Total Equity
      12. Net Ownership Equity
    6. Cash Flow Section
      1. Monthly Rental Income
      2. Monthly Operating Expenses
      3. Monthly Loan Payments
      4. Monthly Cash Flow
      5. Net Ownership Cash Flow
  12. Chapter 6: Forms of Ownership
    1. Borrowers and Borrowing Entities
    2. Types of Borrowers and Borrowing Entities
      1. Individual Ownership
      2. Co-Tenancy and Joint Ownership
      3. Partnerships (1/2)
      4. Partnerships (2/2)
      5. Limited Liability Companies
      6. Corporations
      7. Trusts
  13. Index
    1. A
    2. B
    3. C
    4. D
    5. E
    6. F
    7. G
    8. H
    9. I
    10. J
    11. K
    12. L
    13. M
    14. N
    15. O
    16. P
    17. R
    18. S
    19. T
    20. U
    21. V
    22. W
    23. Y

Product information

  • Title: Commercial Mortgages 101: Everything You Need to Know to Create a Winning Loan Request Package
  • Author(s): Michael Reinhard
  • Release date: May 2010
  • Publisher(s): AMACOM
  • ISBN: 9780814415078