DESCRIPTION
Course Description
This course will review basic financing and fundamental calculations used to finance commercial real estate properties. Participants will calculate loan to value ratios, physical and economic vacancy rates, overall vacancy rate, and net operating income before debt service (N.O.I.) and capitalization rates on the asking price of a commercial property. Participants will correlate the results of their calculations with sample proformas.ย Sample proformas will be provided for the following types of commercial properties:ย apartment building, industrial, office building, vacant land and retail shopping center and participants will be asked to compare and contrast each type of proforma. A variety of financing mechanisms will be presented, including loans, contingencies, deed in lieu, and construction loans.