Introduction to financial literacy in real estate finance

Understanding the financial drivers behind a transaction is essential for any lawyer involved in property finance. This webinar will demystify the key financial concepts that shape lending decisions and negotiations, helping you to better understand the commercial priorities of both lenders and borrowers. By developing confidence with financial metrics, valuations, cash flow and covenant structures, you will be better equipped to negotiate effectively, anticipate issues, and add greater value to your clients.

This webinar will cover the following:

• Key Financial Metrics in Property Finance – loan-to-value (LTV), debt service coverage ratio (DSCR), interest cover ratio (ICR), and yield
• Understanding Valuations and Cash Flow – how property value and rental income drive lending decisions and risk appetite
• Pricing the Deal – margins, fees, and how lenders assess risk-based pricing vs. borrower cost sensitivity
• Covenants and Financial Testing – how covenants are structured, tested, and reset (LTV, ICR/DSCR), and why they matter
• Interpreting Financial Models – reading basic financial models and stress testing assumptions used by lenders and borrowers
• What Drives Each Party’s Position – lender focus on downside protection vs. borrower focus on flexibility and growth
• Negotiating Financial Terms (Lender Perspective) – tightening covenants, preserving triggers, and protecting enforcement rights
• Negotiating Financial Terms (Borrower Perspective) – covenant headroom, cure rights (equity cures), holidays, and flexibility