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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.
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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.
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| 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 analytics...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.
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