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Debt Advisory

How Real Estate Loans Are Underwritten

A practical overview of property analysis, borrower strength, leverage, valuation, and lender credit committee expectations.

Article Snapshot

Read Time8 min read
TopicDebt Advisory
Sections3 key points

Key Takeaway

A practical overview of property analysis, borrower strength, leverage, valuation, and lender credit committee expectations.

01

Property Review

Underwriting begins with property type, location, occupancy, operating history, tenant quality, and market fundamentals.

02

Sponsor Strength

Lenders review borrower experience, liquidity, net worth, credit profile, and the ability to execute the business plan.

03

Capital Structure

Loan proceeds, leverage, DSCR, term, amortization, reserves, and exit strategy are evaluated together before a lender issues terms.

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