Finance Fundamentals
- Introduction to Real Estate Finance
- Role of finance in real estate
- Sources of capital for real estate
- Debt versus equity financing
- Time Value of Money
- Present and future value concepts
- Discounting and compounding
- Application to real estate cash flows
- Financial Mathematics
- Loan amortization calculations
- Interest rate conversions
- Payment and balance computations
Debt Instruments
- Conventional Loans
- Fixed-rate mortgage structures
- Adjustable-rate mortgages
- Loan terms and conditions
- Commercial Loans
- Commercial mortgage characteristics
- Recourse versus non-recourse lending
- Loan covenants and requirements
- Alternative Financing
- Mezzanine financing basics
- Bridge and construction loans
- Islamic finance principles for real estate
Lending Process
- Loan Application
- Borrower qualification requirements
- Documentation and information gathering
- Pre-approval and commitment processes
- Underwriting Fundamentals
- Credit analysis basics
- Property analysis requirements
- Income and collateral verification
- Loan Closing
- Closing documentation
- Title and insurance requirements
- Disbursement procedures
Financial Analysis
- Income Analysis
- Net operating income calculation
- Cash flow projections
- Debt service coverage ratio
- Collateral Analysis
- Loan-to-value ratio fundamentals
- Appraisal requirements
- Collateral risk assessment
- Borrower Analysis
- Financial statement review
- Creditworthiness evaluation
- Guarantor requirements
Loan Structuring
- Loan Terms
- Interest rates and pricing
- Amortization periods
- Maturity and balloon payments
- Repayment Structures
- Fully amortizing loans
- Interest-only periods
- Prepayment provisions and penalties
- Security and Documentation
- Mortgage and deed of trust
- Personal guarantees
- Subordination and intercreditor basics
