Introducing CRE Loan Underwriting

The only online course that walks you through how lenders underwrite and structure commercial real estate loans step-by-step with real-life case studies and done-for-you templates


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Since most commercial real estate projects are financed with debt, it’s critically important to understand how lenders underwrite and structure commercial real estate loans. And yet, unless you’ve gone through credit training inside of a bank, learning how commercial loan underwriting works is not an easy task.

Perhaps you are buying your first commercial real estate investment and don’t know where to start when it comes to getting a loan. Or maybe you are a seasoned development or other CRE professional and want to improve your ability to negotiate better loan terms.  You could even be a broker or other advisor who wants to better serve your clients seeking financing.

It could be that you’ve inherited a building and a commercial loan along with it, but you have no idea where to start. Or maybe you are a business owner buying an owner-occupied building and you want to do your homework before you approach a lender.

That’s why we created this course. To give you an inside look at how banks underwrite and structure commercial real estate loans. We walk you through the entire process step-by-step using real-life case studies and done-for-you templates.

What would mastering CRE Loan underwriting do for you?

  • Feel more at ease when working with clients, partners, and co-workers.
  • Gain confidence when making financing decisions and recommendations.
  • Understand the right questions to ask and what metrics really matter when getting a commercial loan.
  • Break into the CRE industry with a smooth transition.
  • Underwrite your own deals and approach the lender from a position of authority.
  • Assemble a winning loan package to enable a faster, smoother loan process

What is CRE Loan Underwriting?

CRE Loan Underwriting is an online, interactive, video-based course that teaches the foundations of commercial real estate lending to beginners who want a head start and/or industry professionals who want to plug the gaps in their education.

The training is delivered in 10 separate modules and consists of easy-to-follow videos, done-for-you templates, worksheets, and step-by-step real-life case studies. All of the training is online and contained in our private, member only site.

Over the course of 10 modules, the training covers:  key lender personnel and their role in the loan transaction, an overview of the loan origination lifecycle, the five “Cs” of credit, the basics of loan underwriting, and a series of case studies for popular loan types including multifamily, owner-occupied, construction, and builder lines of credit.

Plus, you’re a student for life. You can retake the program for free for as long as the program exists.

Who Should Take This Course?

  • Developers, brokers, and investors who want to improve their ability to secure financing
  • Beginners who want to learn the basics and avoid making any critical mistakes.
  • Seasoned commercial real estate professionals who want to brush up on their skills and plug the gaps in their education.
  • Career changers who want to break into the industry but don’t have a formal background in commercial real estate loans.
  • Students who want to ace their exams and job interviews.
  • Recent grads and young professionals who want to get ahead and stand out from the crowd.

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Your CRE Loan Underwriting Course Includes:



Module 1: Key Loan Personnel
  • Typical lender organizational chart with departmental divisions
  • Identification of roles involved in loan origination, including those with and without approval authority
  • Summary job descriptions and reporting lines
Module 2: Loan Origination Lifecycle
  • Overview of the six stages of the loan origination lifecycle
  • Identification of the key activities in each stage and the people who perform them
  • Discussion of the events that trigger a loan’s transition from one stage to the next
  • Summary of the potential outcomes at each stage, including how to manage and negotiate declines
  • Description of the Portfolio Management and “Loan Workout” processes
Module 3: Fundamental Credit Concepts
  • Identification of the five “Cs” of Credit and how they link to a loan request
  • Description of the data points evaluated for each “C” and why they’re important
  • Overview of the Credit Approval Memo and how analysis of the five “Cs” relates to it
Module 4: Loan Underwriting Basics
  • How the five “Cs” of Credit influence the evaluation of a loan
  • Identification of the critical sections of the Credit Memo and data points required in each section
  • In depth discussion of borrower analysis, guarantor analysis, collateral analysis, and repayment analysis
  • Overview of the financial analysis performed for each deal and the key metrics required
  • Discussion of a lender’s “Credit Policy” and how it influences loan decisions
  • Step by step instructions to calculate the Maximum Supportable Loan amount
  • Summary of potential guarantee structures and the differences between each
  • Review of the typical reporting and performance covenants in common loan structures
Case Study: Homebuilder Line of Credit
  • Real-life $2.5 million builder line of credit request for the acquisition of lots and construction of homes
  • Step by step walk through of the lender’s underwriting package and ultimate loan decision
  • Detailed borrower and guarantor analysis, collateral analysis, and repayment analysis
  • Overview of a Homebuilder Line of Credit and the defining characteristics
  • Review of interest rate floors, release prices, advance limits, sub-limits, and aging limits
  • Discussion on the importance of a homebuilder’s reputation
  • Summary of housing demand drivers and global cash analysis
Case Study: Office Building Acquisition Loan
  • Real-life $4.3 million loan request to purchase a 28,676 square foot class B office building
  • Step by step walk through of the lender’s underwriting package and ultimate loan decision
  • Detailed borrower and guarantor analysis, collateral analysis, and repayment analysis
  • Review of the split loan term/amortization structure and why lenders may structure a loan this way
  • When lease abstracts should be completed for each tenant
  • Application of a DSCR covenant and how its calculated
  • Definition of contingent liabilities and why they matter when analyzing a guarantor
  • Calculation of tenant rent roll concentrations why how they relate to a loan’s risk profile
  • Summary of lease expirations and how to estimate renewal probability
Case Study: Construction Loan
  • Real-life construction loan request for a 14,000 square foot Walgreens drug store
  • Step by step walk through of the lender’s underwriting package and ultimate loan decision
  • Detailed borrower and guarantor analysis, collateral analysis, and repayment analysis
  • Comparison of a closed vs. open ended line of credit
  • Review of the difference between an “as is” value vs. “as stabilized” value
  • Description of why a sponsor’s experience is critical in a construction project
  • Discussion on how to assemble a construction budget
  • Definition of interest reserve and how it’s calculated
  • Identification of the difference between a “regular” tenant and a “credit” tenant
  • How to analyze the potential for a permanent loan as a means of repayment
Case Study: Owner-Occupied Building Loan
  • Real-life $2.1 million loan request for an owner-occupied warehouse
  • Step by step walk through of the lender’s underwriting package and ultimate loan decision
  • Detailed borrower and guarantor analysis, collateral analysis, and repayment analysis
  • How to analyze a loan with multiple repayment streams
  • Review of what it means when loans are “cross-defaulted”
  • Overview of the relationship between the purchasing entity and the underlying business
  • Identification of the link between success of the underlying business and repayment of the loan
  • Summary of the sales comparison approach when analyzing collateral
  • Description of non-cash expenses and how they factor into repayment analysis
Case Study: Multifamily Loan
  • Real-life $3.5 million loan request to finance the acquisition of a 22-unit apartment complex
  • Step by step walk through of the lender’s underwriting package and ultimate loan decision
  • Detailed borrower and guarantor analysis, collateral analysis, and repayment analysis
  • Definition of a “declining guarantee” and demand provision
  • Summary of how to analyze a real estate portfolio and a partnership structure
  • Overview of property amenities and how they relate to collateral analysis
  • Calculation of the maximum supportable loan amount
  • Description of cap rate sensitivity analysis and how it relates to the loan structure
Bonus: Done-for-you Tools and Templates
  • Commercial rent roll template
  • Construction budget template
  • Global cash flow analysis template
  • Interest reserve estimator
  • Lease abstract template
  • Loan documentation checklists
  • Maximum supportable loan amount calculator
  • Multifamily rent roll template
  • Office proforma template
  • Personal financial statement template
  • Schedule of real estate owned template
  • And more!

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I am commercial real estate lender for a large regional bank and I recommend PropertyMetrics to everyone. Andrew Levin | Commercial Lender
I want you to know how much I appreciate PropertyMetrics. As a 30 year real estate attorney focusing primarily on commercial leasing and purchase and sale of commercial properties, it is extremely helpful to see the principles I have learned and used for so many years explained so clearly. Jon K. Ladd | Business and Real Estate Law Group

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