A brief history of the savings and loan industry progresses into present commercial real estate financing practices.  The different types of financing available to commercial properties and their characteristics are explained in detail.  Investment evaluation methods including property comparison, appraisal, capitalization rates, and the time value of money are also covered.

TIME	CONTENT		LEARNING OBJECTIVES After this segment, the student will be able to:
20 min	Savings and loans		Review the history of the savings and loan industry and analyze some regulations that affect savings and loans.
10 min	Commercial loans		Examine some features of commercial loans, including capital requirements, loan to value ratios (LTV's) and non-depository sources of commercial loans.
10 min	Primary and secondary markets for commercial loans		Distinguish between the primary mortgage market and the secondary mortgage market.
10 min	Loan brokers		Explain the role of the loan broker in commercial real estate financing.
20 min	Types of financing arrangements available for commercial loans		Compare and contrast some different financing arrangements, including participation loans, co-lender agreements, fully amortized loans and balloon loans.
10 min	Second lien loans		Assess the problem associated with obtaining a second lien loan for a commercial real estate deal and evaluate some solutions to this problem.
30 min	Construction loans		Examine the features of construction loans.
10 min	Sale and leaseback arrangements		Illustrate how a sale and leaseback arrangement works.
20 min	Ground leases		Compare and contrast subordinated ground leases and unsubordinated ground leases.
20 min	Commercial loan procedures		Summarize the commercial loan procedures from application through loan closing.
20 min	Uniform Commercial Code		Outline the provisions of the Uniform Commercial Code and analyze the implications of this law.
40 min	Ratios		Calculate the following types of financial ratios: Current (liquidity) ratios, debt ratios, profitability ratios, growth ratios, valuation ratios, and cash on cash ratios.
15 min	Financial statements		Differentiate between informal and formal financial statements.
15 min	Comparisons of properties		Understand three types of comparisons used for properties: Per unit values, per square foot valuation, and gross rent multipliers.
40 min	Appraisal approaches		Determine the value of a property utilizing the three common appraisal approaches: Market date, cost and income.
15 min	Capitalization rate		Analyze the elements that go into determining a capitalization rate.
40 min	Time value of money		Complete mathematical calculations utilizing some common measures of the time value of money, including compound interest, present value and internal rate of return.
15 min	Compute advances in commercial real estate		Illustrate how computer advances in commercial real estate will affect the future.