Question

Terry Jones, a loan officer with First National Bank, is working on a new loan request from Bill Smith, CEO of Retail Properties, LLC (RPL). RPL purchases, manages, and sells small retail centers, typically with 6-8 tenants each. Currently, Terry is co acquisition of two centers that RPL has under contract for purchase. Terry spent the morning reviewing the centers' current and historical rent rolls, as well as leases in place for each center. His goal has been to estimate a loan amount that is supportable by the probable level of cash flow from each property. What step in the commercial real estate lending process does this represent? Loan documentation and management Opportunity assessment Repayment Assessment Borrower/Management assessment

Answer 1

It's (C) Repayment Assessment,as he's reviewing the cash flow generation based on which loan can be granted.

Loan documentation and management is basically the paperwork involved in the process,Borrower/Management Assessment is basically checking borrower details viz. personal details,employer details,bank details,address details and all. Opportunity Assessment is an marketing terminology to assess whether to act on an opportunity or to wait for another.