Property Finance And Funding Level 1 Flashcards
How do you source, collate and present information to secure the financing of the purchase of property?
How do you structure an investment in terms of senior debt to be acceptable to lenders?
Within a financing documentation, what is an inter-creditor agreement used for?
Describe various ways of financing a property investment.
How do you assess the true cost of finance?
Does the property market impact on financing or is it the other way around?
Describe the methods and tools to secure financing in a property investment.
Describe the financing conditions in the UK and explain the reasons behind their evolution during the past three years.
What are current LTV ratios / interest coverage ratios / debt service coverage ratios / spread?
How can you hedge against interest rate risk and currency risk?
Explain recent trends in the property financing market.
What information does your client need to provide to secure a property loan?
What are the main terms of a loan agreement in your experience?
Talk me through the types of senior debt providers, and their expectations in terms of pricing and security.
What is the impact of gearing on equity returns?
How do you demonstrate this gearing numerically?
How can mezzanine and equity finance be priced?
Talk me through how the financing process works.
How do you use financial information such as audited report and accounts?
What financial information relevant to property finance and funding do you look for in an audited report?
What are the main risks a bank wants protection from when granting a property loan?
Why is commercial property financed?
How can this be used to increase investment returns?
Explain what you understand by debt and equity finance.
Why would each be used?
What are the pros and cons of each?
What is a non-traditional lender?
Why might you use a non-traditional lender over a traditional bank for lending?
What is a RCF?
How do RCFs work in practice?
Who might have a RCF?
What is a lending platform?
What is a charge?
What does recourse mean?
What is a commercial mortgage?
How are commercial mortgage rates set?
What is an unsecured loan?
What is this supported by?
Why is this risky and how does this affect the interest rate?
What is secured debt?
What security or collateral may be used?
What is a floating charge?
What is a security?
What is a lien?
Does a floating charge affect a business’ ability to use the underlying asset as normal?
How does property development finance work?
How do property development interest rates compare to commercial mortgage rates?
What is bridging finance and who is it typically used by?
How do bridging rates account for risk?
How long is bridging finance typically used for?
What is mezzanine finance?
How is this priced?
When is it typically used?
What is portfolio finance?
What is Sharia finance?
What principles is this based on?
How can a project be financed using a JV?
What is securitisation?
Explain what a bond is.
What risk factors affect the pricing of finance?
Explain how due diligence works during the financing process.
What is loan underwriting and how does it work?
What 3 types of due diligence are likely to be carried out?
What will each consider specifically?
What is a loan agreement and a letter of undertaking?
What is the impact of each?
What must a loan agreement include?
What enforcement provisions may be included?
What corporate documents are you aware of?
What are the 3 types of lien? What are they used to ensure?
What is a mortgage deed?
What is a trust deed?
What is a trust deed?
What are step-in rights?
What are guarantees and indemnities used for?
What are miscellaneous charges used for?
What does redemption mean?
When and why may a penalty be placed on redemption?
What is a deed of release?
How are charges registered?
What is a covenant?
What are the 2 types of loan covenant?
Explain refinancing strategies you are aware of.
Why is refinancing important?
What reasons are there for refinancing?
How can a lender hedge risk in the capital markets?
What is a swap?
How can you model the effects of debt and equity?
What is the replacement for LIBOR and what is the reason for the transition?
What is bridging finance?
What typical terms might be agreed for bridging finance?
