Commercial Real Estate Underwriting: Owner-Occupied Case Study

Assessing credit risk for owner-occupied commercial real estate requires a unique blend of corporate financial analysis and real estate valuation. Understanding how lenders evaluate these hybrid deals is essential for anyone entering commercial banking or real estate finance. This text-based course guides you through the core principles of commercial underwriting, transforming you from a beginner into an analyst capable of structuring and evaluating real-world deals. You will read through a realistic case study, analyzing both the operating business and the underlying real estate asset. What you'll learn: - Understand key commercial real estate and credit underwriting terminology. - Analyze financial statements of owner-occupied businesses to determine debt service capacity. - Calculate essential lending metrics including Debt Service Coverage Ratio (DSCR) and Loan-to-Value (LTV). - Evaluate real estate collateral quality, market conditions, and valuation methods. - Perform sensitivity analysis to stress-test the borrower's cash flow against modern economic shifts. - Structure a professional credit memo summarizing underwriting risks and mitigants. The course begins with foundational definitions of commercial lending and risk concepts before guiding you step-by-step through a practical case study. You will read detailed financial breakdowns, follow the underwriting logic, and learn how to make sound credit recommendations. Designed specifically for aspiring credit analysts, real estate professionals, and finance beginners, this course requires no prior underwriting experience. Start reading today to build your foundational commercial real estate underwriting skills.