Where to Learn about Debt terminology and process in CRE
Any resources where someone who knows nothing about debt in CRE can learn about the terminology and things of that nature. Just started a few weeks ago and feels like folks are speaking a different language, especially with work from home.
Sounds like you already work at a debt firm? I would read term sheets / LOIs and Google every word you don’t know.
There isn’t a document out there titled “everything you need to know about RE debt”
What about for the process from term sheet to closing? Anything you'd recommend on that front?
In the case where you work at debt fund already, you would read the credit documents
Already working at a debt fund. I know there’s no document with that title, but there’s definitely reading material online that I may not have knowledge of that could assist. Was seeing if anyone had any recs.
Maybe checkout a closing checklist
This will hopefully prove helpful:
https://www.adventuresincre.com/glossary/
What kind of fund are you at
Top 10 REPE that does both equity and debt. Recently switched from the equity side to get debt exposure, but will switch back after year or two.
You sure they’re gonna let you switch back? 😬
If I were you, I’d read over a few recent deals your team has done. Take notes and create a list of questions on words, concepts or processes that you don’t understand. Next reach out to an experienced member of your team to grab lunch, coffee or even just a meeting so you can ask all your questions. When I joined my current role as a senior analyst, I had experience as an IS analyst but had zero debt experience. I spent the first week doing the mandatory on boarding while reviewing recent transactions and was able to setup an hour with team leader for our region’s debt team and was able to learn a lot from him.
Thank you for an actual helpful response
Mortgage bankers association website has educational information about the debt process and probably terminology. Trepp has a blog and podcast. Also, you can always buy a commercial real estate textbook or Dictionary of Real Estate Terms.
Maybe try to get in touch with someone who works at Meridian Capital? I would think they prob/hopefully have good resources for that Good luck! :)
Lol
I started at a debt fund with little to no knowledge in the field. We are a lean shop, so I had to get up to speed quickly. I recommend keeping a word document and researching terms you arent yet familiar with, and writing down the definitions. This helped me get my feet wet and allowed me to learn other things along the way (especially legal terms). There are not a ton of RE debt resources out there, so you have to make use with what you have. Read investment memos, and study the UW models to understand how the debt is structured.
It may seem like a lot at first, but just keep at it and it will come naturally
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