Analyze Real Estate Proformas and the Importance of Net Operating Income (NOI)
There are generally three reasons why individuals own real estate — cash flows, taxes, and appreciation. Expert speaker Vincent A. DiCara will explore all three of these reasons and provide information on how lenders and underwriters can distinguish between them by analyzing financial information provided by the borrower.
Vincent will also address issues of importance in commercial real estate lending. He will cover specific topics like financing income producing real estate businesses, understanding and evaluating collateral, the commercial real estate underwriting process, and evaluating appraisals and leases.
The analysis of commercial real estate projects differs from other small business financing projects. Vincent will explore the similarities between this and other types of financing and point out the differences, as well.
The particular emphasis will be on the development of proformas (projected financial information) for new projects, which are based on assumptions. These assumptions will be tested and techniques for doing so will be presented by the speaker in this audio session.
In addition, Vincent will shed light on the nature and importance of property appraisals, and will talk about three approaches for valuing real estate: The Cost, Income and Market Approach. He will also provide listing of important issues in analyzing commercial real estate.
Topics covered in the session:
- The Five C’s of credit and how they relate to real estate transactions
- Tax incentives for owning real estate
- Using appraisals and leases: what to look for
- Analyzing real estate proformas: the importance of Net Operating Income (NOI)
- Important financial ratios
Who should attend?
Commercial Loan Officers, Business Development Representatives, Branch Managers, Business Credit Analysts, Construction and Builders (Finance Departments)