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COMMERCIAL REAL ESTATE UNDERWRITING: BACK TO BASICS

October 25, 2018

While quantitative analysis is critical to prudent real estate underwriting, real estate math isn't a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments will feed into your estimates of property cash flow, debt/service coverage ratios, and a loan to value ratio that comes from quantitative analysis. Your analysis should be completed in the context of a qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will in turn jeopardize repayment prospects and bank portfolio quality.

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Multi Living Developments

Specialists in higher density construction, Multi Living Developments work with Investors and Developers to maximise the potential yields from their block. Using multi dwelling/ Class 2 construction, Multi Living Developments provides quality apartment and mixed-use developments to the Perth market.

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COMMERCIAL REAL ESTATE UNDERWRITING: BACK TO BASICS