Name: Structuring a Construction Loan
Rating: 4.5 (2 reviews)

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Overview

Structuring a Construction Loan course overview

This Structuring a Construction Loan course dives into the factors that affect the structure of a loan for construction and real estate development. In this course, we break down the line items of a construction budget and proforma. We then look at how to calculate the interest expense and maximum loan amount on the construction loan by examining the timing of spend of different line items from the construction budget.

We also examine quantitative and qualitative terms in the term sheet and how they affect the structure of the construction loan. Finally, this course builds out different construction development scenarios and looks at how loan repayment works in all these scenarios.

Structuring a Construction Loan learning objectives

Upon completing this course, you will be able to:

Understand the line items in a developer’s budget and derive a risk-assessed loan-to-cost
Review development and construction cash flows to calculate interest and financing fee values and funding mechanisms
Determine how the price of debt ties into the budget and project evaluation
Appreciate how qualitative loan terms can impact loan-to-cost and interest rates
Calculate various take-out scenarios
Examine how mezzanine debt and promote structures may fit into the total project assessment

Structuring a Construction Loan is an elective course of CFI’s CBCA® program

CFI’s Certified Banking & Credit Analyst (CBCA)® Program offers skills including credit evaluation, documentation, and review procedures. For beginners to advanced users, the CBCA® program is designed to help you become a world-class credit analyst.

Who should take this CBCA® course?

This Structuring a Construction Loan course is designed for current and aspiring Commercial Banking professionals working in the construction and real estate development industry. This course is also a great resource for real estate analysts and commercial mortgage brokers who wish to deepen their understanding of how construction loans are structured. By diving deeper into the lender’s perspective when structuring a loan, this course provides valuable insights for lenders, as well as brokers and advisors.

Structuring a Construction Loan

Level 3

Approx 2.5h to complete

100% online and self-paced

What you'll learn

Lesson

Multimedia

Exams

Files

Introduction

Course Objectives Free Preview

Download Course Files

High Level Considerations

Terms and Definitions

Reaching Loan-to-Cost

Budget Free Preview

Land, Due Diligence, and Closing Costs

Sales, Marketing, and Lease-Up

Other

Contingency

Loan-to-Cost Roundup - Nuances in Line Items

Loan-to-Cost Roundup - Differences in Line Items

Loan-to-Cost Roundup - Other Concepts and Calculations

Loan-to-Cost Roundup - Loan Amount and Required Equity

Interactive Exercise 1

Calculating Interest Expense

Calculating Interest - Pre-Construction

Calculating Interest - Construction

Calculating Interest - Pre-Leasing, Lease-Up, Stabilization, and Sale

Maximum Loan Amount

Interactive Exercise 2

Quantitative Terms in the Term Sheet

Interest Rate Free Preview

Interest Payments

Interactive Exercise 3

Qualitative Terms in the Term Sheet

Loan-to-Cost, Interest Rates, and Tradeoffs

Key Qualitative Terms in the Term Sheet Free Preview

Interactive Exercise 4

Construction Loan Repayment

Development Scenarios Free Preview

Build-to-Sell Units

Sale of a Stabilized Operating Asset

Take-Out Loan

Interactive Exercise 5

Final Considerations

Capital Stack

Promote Structure

Conclusion

Summary

Qualified Assessments

Qualified Assessment

Share Your Feedback

Course Completion

What our students say

Superior course
Superior course, thank you!

Eid A.Mordy Moawad Mostafa

Good
Important construction loan concepts were covered

KEITH SPENCER

Frequently asked questions

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

How long do I have to complete the courses?

Depending on your enrollment type, you will either have two years, yearly, or monthly access to your courses. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.

Are CFI courses officially accredited?

CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, and by the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

Are there any additional fees or costs?

No! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.

What currency are your courses priced in?

All our online courses are priced in USD. We accept debit/credit cards (Visa, Mastercard, Amex), PayPal, and wire transfers for one-time course payments. If you wish to proceed with a wire transfer from your bank, please see instructions here.

How do I earn my certificates?

Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and help delve even deeper into the course concepts, please look into our free career resources library.

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function which allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

What is the price of the subscription?

All Access Subscription is priced for $497 per year as Self-Study plan or $897 per year as Full Immersion plan.

What is included in the subscription?

All Access Subscription includes all courses from Financial Modeling & Valuation Analyst (FMVA)® Certification, Commercial Banking & Credit Analyst (CBCA)™ Certification, Capital Markets & Securities Analyst (CMSA)® Certification, Business Intelligence & Data Analyst (BIDA)™ Certification, Commercial Real Estate Finance Specialization and Environmental, Social & Governance (ESG) Specialization.