CRE Cash Flow Analyzing Income-Producing or Rental Real Estate


Oct 24, 2019

8425 Woodfield Crossing Blvd
Ste 155E
Indianapolis, IN 46240-7321

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Community banks continue to deal with commercial real estate (CRE) loans as a major portion of the loan portfolio.  Also, many borrowers continue to hold significant amounts of income-producing or rental real estate on their balance sheets.  Whether directly financing these assets or including the income stream(s) in your overall credit analysis, it is important to understand key analytical concepts in evaluating real estate cash flow.  And with real estate markets evolving, with some property types performing better than others, it is important to use the updated cash flow analysis as a part of ongoing loan monitoring and updating of collateral values – not in lieu of appraisals, but as interim and supplemental steps.

This program demonstrates (from case studies) the key variables and concepts for determining CRE cash flow, plus primary analytical techniques such as transaction-level stress-testing.  It also explores where to find information from existing sources, such as tax returns, and what additional information may be needed, such as customer rent rolls.