3.4 CRE Finance: Loans, LTV, DSCR & Capital Stacks
- 9 Sections
- 35 Lessons
- 36 Quizzes
How Commercial Lending is Different
- Lesson 1.1: The Property Is the Borrower
- Quiz 1.1: The Property Is the Borrower
- Lesson 1.2: Recourse vs. Non-Recourse: What Happens When It Goes Wrong
- Quiz 1.2: Recourse vs. Non-Recourse: What Happens When It Goes Wrong
- Lesson 1.3: The Loan Sizing Equation: How Lenders Calculate the Maximum Loan
- Quiz 1.3: The Loan Sizing Equation: How Lenders Calculate the Maximum Loan
- Lesson 1.4: When the Rate Environment Changes Everything
- Quiz 1.4: When the Rate Environment Changes Everything
LTV, The Basics and Beyond
- Lesson 2.1: What LTV Actually Measures (and What "Value" Means to a Lender)
- Quiz 2.1: What LTV Actually Measures (and What "Value" Means to a Lender)
- Lesson 2.2: Typical LTV by Asset Class and Lender Type
- Quiz 2.2: Typical LTV by Asset Class and Lender Type
- Lesson 2.3: LTV Compression: When Markets Tighten
- Quiz 2.3: LTV Compression: When Markets Tighten
- Lesson 2.4: Blended LTV in a Capital Stack
- Quiz 2.4: Blended LTV in a Capital Stack
- Lesson 2.5: Back-Solving for Required Equity
- Quiz 2.5: Back-Solving for Required Equity
DSCR, The Number That Actually Limits Your Loan
- Lesson 3.1: The DSCR Formula: What Goes In, What Comes Out
- Quiz 3.1: The DSCR Formula: What Goes In, What Comes Out
- Lesson 3.2: Why DSCR, Not LTV, Is Usually the Binding Constraint
- Quiz 3.2: Why DSCR, Not LTV, Is Usually the Binding Constraint
- Lesson 3.3: DSCR Requirements by Lender Type
- Quiz 3.3: DSCR Requirements by Lender Type
- Lesson 3.4: The Global Cash Flow Test
- Quiz 3.4: The Global Cash Flow Test
- Lesson 3.5: Stress-Testing DSCR for Rate and Vacancy Scenarios
- Quiz 3.5: Stress-Testing DSCR for Rate and Vacancy Scenarios
Loan Types, Agency, CMBS, Bank, Bridge, Life Company
- Lesson 4.1: Agency Debt: The Best Rates in Multifamily
- Quiz 4.1: Agency Debt: The Best Rates in Multifamily
- Lesson 4.2: CMBS: Fixed, Non-Recourse, and Inflexible
- Quiz 4.2: CMBS: Fixed, Non-Recourse, and Inflexible
- Lesson 4.3: Bank/Portfolio Loans and Life Company Debt
- Quiz 4.3: Bank/Portfolio Loans and Life Company Debt
- Lesson 4.4: Matching the Loan to the Deal Thesis
- Quiz 4.4: Matching the Loan to the Deal Thesis
Bridge Financing, Value-Add Capital
- Lesson 5.1: When Bridge Is the Right Tool
- Quiz 5.1: When Bridge Is the Right Tool
- Lesson 5.2: Typical Bridge Loan Structure
- Quiz 5.2: Typical Bridge Loan Structure
- Lesson 5.3: Bridge Lender Types: Who's in the Market
- Quiz 5.3: Bridge Lender Types: Who's in the Market
- Lesson 5.4: The Bridge-to-Perm Refinance Plan
- Quiz 5.4: The Bridge-to-Perm Refinance Plan
- Lesson 5.5: Bridge Loan Covenants: Cash Management, Lockboxes, and Springing Sweeps
- Quiz 5.5: Bridge Loan Covenants: Cash Management, Lockboxes, and Springing Sweeps
Capital Stacks, Layering Debt and Equity
- Lesson 6.1: The Capital Stack: Bottom to Top
- Quiz 6.1: The Capital Stack: Bottom to Top
- Lesson 6.2: Return Expectations and Risk Profiles by Layer
- Quiz 6.2: Return Expectations and Risk Profiles by Layer
- Lesson 6.3: Mezz Debt vs. Preferred Equity: The Structural Differences
- Quiz 6.3: Mezz Debt vs. Preferred Equity: The Structural Differences
- Lesson 6.4: Waterfall Distributions: Who Gets Paid When
- Quiz 6.4: Waterfall Distributions: Who Gets Paid When
Loan Documents and Closing, What to Negotiate
- Lesson 7.1: Term Sheet vs. Commitment Letter: What's Actually Binding
- Quiz 7.1: Term Sheet vs. Commitment Letter: What's Actually Binding
- Lesson 7.2: Four Terms to Always Negotiate
- Quiz 7.2: Four Terms to Always Negotiate
- Lesson 7.3: Personal Guarantees: When They're Required and How to Limit Them
- Quiz 7.3: Personal Guarantees: When They're Required and How to Limit Them
- Lesson 7.4: The Closing Timeline and Lender Reserves
- Quiz 7.4: The Closing Timeline and Lender Reserves
Capstone, Finance a Value-Add Multifamily Deal
- Lesson 8.1: The Deal: Setup and Initial Numbers
- Quiz 8.1: The Deal: Setup and Initial Numbers
- Lesson 8.2: The Analysis: Bridge Loan, Equity, and Day 1 DSCR
- Quiz 8.2: The Analysis: Bridge Loan, Equity, and Day 1 DSCR
- Lesson 8.3: The Decision: Stress-Test and Permanent Loan Planning
- Quiz 8.3: The Decision: Stress-Test and Permanent Loan Planning
- Lesson 8.4: The Pro Lens: What a Sophisticated Investor Sees
- Quiz 8.4: The Pro Lens: What a Sophisticated Investor Sees
Final Exam
Financing decides whether a good deal pencils. Get the structure wrong and the asset cannot carry it.
You learn how commercial lending differs from residential, what LTV and DSCR cap, the loan types from agency to CMBS to bridge, and how to layer debt and equity into a capital stack. A module on loan documents covers what to negotiate before you sign.
Eight modules, 35 written lessons, 135 practice questions, and a graded final exam with a certificate. The capstone finances a value-add multifamily deal. Self-paced, 12 months of access included.
Structure the debt so a good deal pencils.
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