Resources for underwriting CRE loans
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[{"id": "gaa3dnc", "text": "Bump", "replies": [], "depth": 1}, {"id": "gaa4ai1", "text": "Adventures in CRE has sample models and video tutorials", "replies": [{"id": "gaaapci", "text": "Seems to be more geared to acquisition and development rather than commercial lending.", "replies": [{"id": "gaamhw9", "text": "Probably because lending is on the finance side. And, bc banks keep their information close to the chest. Most banks will have some sort of internal model that is then used to underwrite and the analyst is more or less plugging in numbers. They may look at specific streams of income and they may model out distributions for funds, etc. \n\nBc real estate varies so greatly with every deal, if you can get a solid foundation and be able to build out a model like the ones on A.CRE, you should be able to handle whatever a bank throws at you.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gaab2rb", "text": "A.CRE, PropertyMetrics, REFM, are a few organizations/companies that provide some great insights, and training modules", "replies": [], "depth": 1}, {"id": "gaapcyl", "text": "If anything I\u2019ve seen that banking spreadsheets are simpler, less complex than acquisition models!", "replies": [], "depth": 1}, {"id": "gac1v03", "text": "What types of loans are you looking to underwrite and what are you looking to do with the resources? I'm a commercial underwriter for a credit union. We have done about $23MM in commercial loans (including commercial vehicle lending but excluding a lot of church loans we do). I could potentially look at seeing what some of our templates that we have could be shared with any sort of identifiers removed. Pretty much everything we do is in excel.", "replies": [], "depth": 1}, {"id": "gae0z11", "text": "If it's multifamily there are some basic instructions and templates available from HUD.", "replies": [], "depth": 1}, {"id": "gajy1w8", "text": "The biggest issue that lenders have is that they don't understand how to see through the shoes of a developer (and the same is true vice-versa).  If you're going to look up books on underwriting, I would actually steer you to development books instead.  Understand how to be a developer and you really unlock how to get the best deals the loans they need and you won't miss what many other lenders that just check boxes miss...\n\nHaving said that, a couple suggestions (both developer and non-developer): \n\n1. Christian Redfearn - Underwriting Commercial Real Estate in a Dynamic Market\\_ Case Studies-Academic Press (2019)\n2. McNellis - Making It in Real Estate\\_ Starting Out as a Developer\n3. S. P. Peca-Real Estate Development and Investment\\_ A Comprehensive Approach (2009)\n4. Richard Peiser\\_ David Hamilton - Professional Real Estate Development\\_ The ULI Guide to the Business-Urban Land Institute (2012)\n5. (Banking money and international finance 15.) Bezzecchi, Alessia\\_ Scardovi, Claudio - Banking, lending and real estate-Routledge (2020)\n6. (Wiley finance) Cyril Demaria - Introduction to private equity, debt and real assets \\_ from venture capital to LBO, senior to distressed debt, immaterial to fixed assets (2020)\n\nI have many many other books as well on the subjects, split between architecture, development, construction, and general business....let me know any questions you might have.", "replies": [], "depth": 1}]