Mortgage/Finance

Welcome Mortgage/Finance Professionals...
Performance Realty Solutions the leading provider of class-room based Commercial Real Estate Training will train your new or inexperienced commercial real estate finance personnel on all the fundamentals of the CRE industry.

We want to help you, Senior Management, take the time and hassle of training your new professionals off your shoulders, and allow you to concentrate on your busy everyday business of making deals. Read what some executives have to say.

Performance Realty Solutions will customize a program to fit your needs, you can choose from a variety of topics as listed below. We first meet with every client to find out what specific challenges they are facing and create a program suited to fulfilling their wants and needs.

Performance Realty Solutions has a library of commercial real estate documents, from actual leases and mortgage instruments to engineering and environmental reports. We use these documents as “real world” instruction tools. The actual documents are reviewed in the classroom based environment allowing for extensive Q&A. We also provide each participant with glossaries of both Commercial Real Estate terms and Mortgage industry definitions.

Why is it important to understand the basics of the industry?

We know lenders treat each loan as if it will default and they will eventually own the property. Therefore, your personnel need to understand the risk. We know the ultimate exit strategy will be disposing of the property...which is why your people need to be knowledgeable about commercial real estate. It’s not just about the numbers, rates, term, and the borrower’s credit. It’s about the underlying real estate (Physical Asset), and providing timely and efficient service, accurate underwriting, and the quality of the asset along with the condition of the respective market is what matters.

Learning & understanding the complicated world of Commercial Real Estate will create instant credibility for your personnel who will interface with the seasoned professionals in the industry on a daily basis. The faster your professionals become fluent in the Industry Fundamentals the sooner they are in full production, with less stress on management.

The knowledge gained through the training program will make your personnel more efficient and productive in their field of work and will help them and your company become superior service providers.

 

Whether they are working in the origination, underwriting or servicing aspect of commercial mortgage finance it is imperative that they understand the basics of...

1.The different commercial property types, from office and industrial buildings to free standing retail and shopping centers, and multi-family properties.

2. Market analytic...understanding the marketplace, the vacancy and absorption, the trends, anomalies within the market. Learning the distinct differences between Class A, B, & C office and multi-family properties, and what are the national standards.

3. The Construction and Development process and the physical elements of the various commercial buildings...what makes one building better than another? How to analyze a Tenant Workletter (TI) what are the elements and relative costs.
How is it financed or is it financed?
4. Leases and other related legal documents that are the drivers for each mortgage finance deal...how to read and understand the different commercial leases, learning the difference between office leases vs. industrial triple net leases. How to prepare lease abstracts; learn how to read a rent roll, income and expense statements, what are ordinary and customary operating expenses in the market, engineering and environmental reports, the differences between Phase 1 & 2 ESA’s. Learning about appraisals, what are the 3 methods of evaluation, how are they used, mortgage documents; learn about defeasance clauses, what are “carve-outs”, Etc. View Example

5. Learn the various Ownership structures; Partnerships, REITS, LLC, and Corporate.

6. Learn the different types of mortgage products and debt structures that are the most common in the commercial industry. Learn the basics about construction loans, mezzanine, and permanent mortgage financing. Understanding the CMBS world of securitized lending. What are the differences between a “Conduit” and just a CMBS lender? What’s the difference between a Life Insurance lender and a Pension Fund lender or Commercial Bank? Who are the lenders for the different loan structures, etc?

7. Learn how to inspect a property and ask the right questions, what to be on the look-out for, deferred maintenance, property records, mechanical & building systems, roof reports, etc.

8. Understanding how property management companies operate, are they third party providers, what is the role of the real estate broker.

9. Using information resources to analyze the market, it’s more than just statistics, learning about the demographics of the market and economic drivers.