fundamentals-of-construction-lending-and-real-estate-credit-administration

Fundamentals of Construction Lending and Real Estate Credit Administration

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Live Webinar | CEU Approved

  • 60 minutes
  • 1 Day Left
     Jan 25, 2021
  •   01:00 PM - 02:00 PM ET
    10:00 AM - 11:00 AM PT

Repayment ability depends on successful completion of the construction before the project can generate cash flow from the sale of the finished property, from rental or lease of the real estate, or from permanent take-out refinancing 

During the construction period, the collateral is literally work-in-progress and often the guarantors do not have sufficient outside net worth or income to pay off the loan

Session Highlights:

  • Learn how to evaluate the developer’s ability to repay the construction loan:

  • Developer’s background and expertise

  • Contractor’s background and expertise

  • Developer’s legal structure

  • Owner’s minimum equity,

  • Repayment ability from project cash flow, collateral, guarantee

  • Develop an appropriate underwriting of the construction project to ensure the resulting structure ensures the bank will be repaid in full, on time, and as agreed: 

  • Sources and uses, cost review of hard costs & soft costs, appraisal review 

  • LTV, LTC, DCR 

  • Interest reserves 

  • Bonding 

  • Explain how to satisfactorily monitor and manage credit exposure and construction activity: 

  • Role of and activities performed by real estate construction administration (RECAD) 

  • Inspections and disbursements

  • Reallocations and change orders

  •  Retention, punch lists, charge-backs 

  • Causes of and cures for construction problems 

  • Problem asset management of construction loans

Why You Should Attend:

This webinar addresses how to mitigate the higher risk, and it offers advice and guidance in how to extend construction loans safely and profitably with appropriate analysis and underwriting and structuring—LTV, LTC, minimum equity, bonding, etc. Once the construction loan is extended, it must be administered by real estate credit administration (RECAD), so the session also addresses the role and activities of real estate construction administration (RECAD)—sources & uses, costs review, inspections, disbursements, retention, liens, construction problem mitigation. 

Who Should Attend:

  • Commercial real estate (CRE) bankers, lenders 

  • CRE credit approvers 

  • Credit analysts 

  • Loan review officers 

  • Construction administrators




Advanced Preparation: None 

Program Level: Intermediate

Prerequisites: None

Field of Study: Finance



*You may ask your Question directly to our expert during the Q&A session. 

** You can buy On-Demand and view it at your convenience.


Dev Strischek

Dev Strischek

A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Dev Strischek is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking, and private wealth management. He also spent three years as managing director and credit approver in SunTrust’s Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank’s Palm Beach market.

Besides stints at other banks in Florida, Kansas City, and Ohio, Dev’s experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii. Dev serves as an instructor in RMA’s Florida Commercial Lending School, the Stonier Graduate School of Banking, and as both an instructor and as a member of the American Bankers Association's (ABA) Commercial Lending and Graduate Banking School advisory board. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA.

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Edupliance is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

For more information regarding administrative policies such as complaint and refund, please contact our offices at 844- 810-1151.

PLEASE NOTE: To receive credit through the NASBA for this program you MUST attend the Live program in its entirety and complete the required progress checks.

Number of CPE Credits Awarded for This Course: 1 (Finance - 1.0)

Delivery Method: Group Internet Based

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