During COVID, the red flag was that much of the business and real estate in the world shut down. In this lesson, trends or characteristics seen as red flags, tell tale signs that a workout is needed and lenders approaches when having a problem asset will be explored.
Lesson Learning Objective: By the end of this lesson, you will be able to examine loan red flags and lenders’ approaches to problem assets.
The COVID pandemic intensified the situation of hotels struggling to fill rooms and retail centers fighting to keep tenants afloat, in these real-world situations, a workout loan seems like the best possible scenario for owners/borrowers. In this lesson, you’ll continue the experience of receiving great information from industry experts. Topics discussed include the lender perspective, the real estate workout not always being a golden parachute, advice to borrowers, additional workout considerations for lenders and borrowers and the acquisition side of real estate.
Lesson Learning Objective: By the end of this lesson, you will be able to make sense of real estate workout potential pitfalls.
Photo by Mikita Yo/courtesy of Unsplash.com
The COVID-19 pandemic has wreaked havoc on the economy generally and with respect to many asset classes of real estate. The general consensus now is this unfortunate situation will not abate for some time in the future. Not surprisingly, with businesses closed, employees furloughed, and revenue streams severely challenged, many owners of real estate and their tenants are simply not making rent and debt service payments. When that happens, the value of the real estate is reset, leaving the equity and possibly some of the debt impaired.
Lesson Learning Objective: By the end of this lesson, you will be able to link the significance of tax consequences to distressed real estate workouts.
Predictably, many real estate asset classes were negatively impacted by the Covid-19 pandemic. The following lesson will give you some insight into the catalysts that made Real Estate Workouts particularly necessary for retail and hospitality property (owners/borrowers). Additionally, hear why the Covid-distressed multifamily sector is an interesting case study to monitor.
Lesson Learning Objective: By the end of this lesson, you will be able to identify the initiating catalysts of workout necessities.
In this lesson, Understanding the Process, methodology and progression of the workout is explored.
Lesson Learning Objective: By the end of this lesson, you will be able to comprehend the process, methodology and progression of the real estate workout.
In a post-COVID world, real estate lenders have become helpful creatives to borrowers by utilizing real estate workouts when borrowers are at risk of defaulting on loans.
In this lesson, Real Estate Workout Defined, you will learn the definition of a real estate workout and will gain knowledge of what a real estate workout is and what it is not.
Lesson Learning Objective: By the end of this lesson, you will be able to define a real estate workout.
You have successfully completed all the lessons in this course. Please verify your identity by entering in your State Recognized ID number or your full name to take the final exam.
Connect Classroom has created course content, which encourages ongoing conversations. You will enjoy learning from expert provided content on topics relevant to your work.
Mission Statement
Connect Commercial Real Estate is a commercial real estate marketing agency, as well as a provider of news, events and continuing education, with a client and community-centric approach. Our goal is to positively impact the commercial real estate community nationwide by better serving the people and places that we touch. Our innovative and integrated approach provides our clients with a platform to tell their stories and share their experiences and success through written, digital and creative channels, while educating the industry on market trends and deal flow.
Course Instructor
Daniel Ceniceros, Founder & CEO, Connect Commercial Real Estate
Instructor Response Time
At any point during your time within the course, should you have a question or comment, there is an Ask Your Instructor button you may utilize to contact your instructor. Response time is within 48 hours.
Course Description
This course is an overview of a Real Estate Workout. This course will define the real estate workout and how it should be utilized as well as the process, when the need for a workout arises, tax implications, potential pitfalls and lenders responses.
Course Prerequisites
None.
Criteria for Successful Course Completion
To receive full credit, you must read the text and, if applicable, watch all of the videos. Please do not skip any important information.
Once you have completed a lesson, you will be directed to an end of lesson quiz and after successful completion of the quiz, you will be directed to move on to the next lesson. Once all lessons are completed, you will be prompted to take the final exam to complete the continuing education credit requirements.
Exam Information
To receive full continuing education credit, you must complete the final exam. You will be able to take the exam twice and must have a 70% score to pass. Once you have successfully passed the course exam, you will be directed through the process to receive your certificate.
State or Jurisdiction Specific Requirements
None.
Course Progression and Navigation
The homepage of each course lesson exhibits a blue and white course progression card. On this interactive card you will find the Lesson Content category that lists the lesson’s topic(s), knowledge check and quiz. This information is found on the upper left corner of the card.
The course progression card also provides you with your lesson completion status in percentage as well as lesson steps completion. This information is found on the upper right corner of the card.
Below the course status card are navigation buttons. To the lower left is the Previous Lesson button. When clicked, this button takes you to the previous sequential lesson within the course. The button to the lower right is the Next Lesson button. When clicked, this button takes you to the next sequential lesson within the course.
In the middle of the Previous Lesson and Next Lesson buttons is the “Back to Course” text button. When clicked, this text button takes you back to the course’s homepage.
Please note that your ability to digress to a previous lesson or forward to a next lesson may be impaired due to lesson element completion requirements.
Equipment and System Requirements
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