Commercial Real Estate Lending: Risk, Return & Underwriting Fundamentals
A practical training program for lenders and credit analysts who evaluate, underwrite, and monitor CRE loans. Real-world scenarios. Financial metrics that matter. Risk management you can apply immediately.
Build Real CRE Underwriting Judgment
CRE lending is one of the highest-risk, highest-reward segments in commercial banking. But too often, analysts learn CRE on the job, picking up habits and blind spots along the way. This course gives your team a structured foundation.
From understanding property types and market dynamics to calculating NOI and DSCR, reviewing appraisals with a critical eye, and monitoring portfolios for early warning signs, every module is built around decisions your lenders face on real deals.
The course includes a midterm and final case study, both reviewed live with our subject matter experts. No auto-grading. Real feedback on real analysis.
Property Analysis
Evaluate office, retail, industrial, multifamily, and special use
Financial Metrics
NOI, DSCR, EGI, cap rates, LTV, LTC
Appraisal Review
Income, cost, and sales comparison approaches
Risk Assessment
Market, tenant, construction, environmental risk
Loan Structures
Amortization, balloon, fixed vs. floating, covenants
Portfolio Monitoring
Watchlists, early warnings, workout strategies
What You'll Learn
9 instructional modules covering the full CRE lending lifecycle, plus supplemental podcasts and materials, a midterm case study, and a final case study.
Introduction to CRE Lending
CRE property types (office, retail, industrial, multifamily, special use), key players and roles, loan types (acquisition, refinance, construction, bridge, mini-perm, permanent), and the CRE lending lifecycle.
Property Types and Markets
Characteristics and risks of each property type. Location and market analysis. Supply and demand indicators: vacancy rates, absorption, rental rates, demographics, construction starts. CRE cycles and economic sensitivity.
Loan Structures and Terms
Amortization schedules, interest-only periods, balloon payments. Fixed vs. floating rates. LTV and LTC ratios. Regulatory requirements and supervisory LTV restrictions (FIRREA). Common covenants and conditions.
Income and Cash Flow Analysis
Analyzing rent rolls and lease agreements. Tenant expense options (NNN, gross, CAM). Calculating EGI, NOI, and DSCR. Operating expenses, repairs, maintenance, replacement reserves, and management fees.
Valuation and Appraisal Review
Income, cost, and sales comparison approaches. As-is, as-complete, and as-stabilized values. Cap rate analysis and sensitivity. Appraisal review process. Internal vs. external valuation perspectives. Appraisal vs. evaluation.
Risk Assessment and Mitigation
Market risk, interest rate risk, tenant risk, construction risk. Environmental risk (Phase I/II assessments). Projection analysis and stress testing. Risk rating systems and internal loan grading.
Monitoring and Portfolio Management
Ongoing borrower and property monitoring. Covenant compliance tracking. Tenant turnover and lease impacts. Watchlist indicators and early warning signs. Workout and resolution strategies. CRE concentration limits and the 100/300 rule.
Workouts
Loan workouts and resolution strategies. Forbearance, foreclosure, mortgagee-in-possession. Regulatory considerations for troubled CRE credits.
Loan Documentation and Title Insurance
Loan documentation (mortgage/DOT, assignment of rents, SNDA, construction agreements). Doc review process. Title insurance: title commitment, title search, ALTA, endorsements.
CRE Podcasts and Supplemental Materials
CRE-specific podcast episodes covering default drivers, loan review best practices, valuations, appraisals, forbearance, and how to treat real estate owned by an LLC. Optional additional learning.
NOI, DSCR, and Valuation
After Module 5, work with a sample tax return and template to calculate NOI, DSCR, and property valuation based on cash flow and an assumed cap rate. Then review and discuss your work live with one of our subject matter experts.
Apartment Acquisition Analysis
A realistic, open-ended scenario: the purchase and renovation of an apartment complex. Receive detailed information, analyze the opportunity, and provide a recommendation. Then discuss it live with a LOT trainer. This ties everything together.
Built for Lending Professionals in CRE
Credit Analysts
Involved in evaluating and underwriting CRE loans
Portfolio Managers
Monitoring CRE exposure and managing risk
Credit Leaders
Chief Credit Officers and Credit Managers overseeing CRE policy
Commercial Lenders
Responsible for CRE origination and risk decisions
Joe Davis
Senior Credit Trainer, Lenders Online Training
Joe brings over 25 years of banking experience with a deep focus on commercial credit and lending. Most recently, he served as Chief Credit Officer at a $1.2 billion community bank, where he led credit policy, underwriting, and portfolio management. As a lifelong learner with a passion for training and development, Joe built this course to give CRE lenders the structured, practical foundation he wishes more analysts had when they started.
Get Started
Take the CRE course on its own, or bundle it with our comprehensive Tax Return & Financial Statement Analysis training for the best value.
Ready to Strengthen Your CRE Lending?
Talk to our team about enrolling your lenders, or get started today.
Questions? Call 360-455-1569 or email info@lendersonlinetraining.com