--- title: How To Underwrite Commercial Loans - Part 1 description: If you want to learn the commercial loan business, here are the first ten lessons of my commercial loan underwriting manual. image: https://info.c-loans.com/hubfs/Wiretap.png --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [How To Underwrite Commercial Loans - Part 1](https://info.c-loans.com/how-to-underwrite-commercial-loans-part-1) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Fri, Sep 28, 2018 - [Tweet](https://twitter.com/share) If you want to get into the commercial loan brokerage business, you first need to learn how to underwrite commercial loans.  It is a surprisingly straight-forward process.  You'll need to learn about a dozen ratios and about 200 ***terms of art*** specific to commercial real estate finance; but you can master most of these in a single, very long day.   [![Nine-Hour Video Training Course How to Broker Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f)   ![Wiretap](https://info.c-loans.com/hs-fs/hubfs/Wiretap.png?width=411&name=Wiretap.png)   One of the tools that I use when I teach brokers the commercial loan business is my [Commercial Mortgage Underwriting Manual](https://www.c-loans.com/mortgage-brokers/learn-to-underwrite-commercial-mortgage-loans-only-199).  We are in the process right now of adding our entire commercial loan training manual to the free Knowledge Base section our flagship website, [C-Loans.com](http://www.c-loans.com).   [![Earn 11% to 12% Interest Since 1980](https://no-cache.hubspot.com/cta/default/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457)   ![Offensive line](https://info.c-loans.com/hs-fs/hubfs/Offensive%20line.jpg?width=480&name=Offensive%20line.jpg)   Today I am going to give you links to the first ten pages of our commercial loan underwriting manual, so you can begin your study today.   [![Free List of 3,159 Commercial Lenders Sort By Your Own Criteria](https://no-cache.hubspot.com/cta/default/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24)   ![rats](https://info.c-loans.com/hs-fs/hubfs/rats.jpg?width=425&name=rats.jpg)   1. The [Table of Contents](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans) lists which lessons have so far been published. 2. We start with a short [introduction](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/introduction). 3. Much of the underwriting of commercial loans can be boiled down to the results of [three main ratios](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/three-ratios). 4. First we discuss the [Loan-to-Value Ratio](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/the-loan-to-value-ratio), as it pertains to commercial loans. 5. Next we talk about the [Debt Ratios](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/debt-ratios) of the particular borrowers. 6. We finish with a discussion of the [Debt Service Coverage Ratio](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/debt-service-coverage-ratio-dscr), perhaps the single most important ratio in all of commercial real estate finance. 7. What is a [Loan Constant](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/loan-constants)?  Without knowing the loan constant, the Debt Service Coverage Ratio calculation is meaningless. 8. The big question for the borrower is, "[How large of a commercial loan can I get?](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/how-many-dollars-can-i-get)" 9. The purpose of the [Operating Expense Ratio](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/operating-expense-ratio) is to catch cheaters trying to get a commercial loan larger than they deserve. 10. You need to understand the [different types of commercial leases](https://www.c-loans.com/knowledge-base/how-to-underwrite-commercial-loans/net-leases-versus-full-service-leases).   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a)         [![Free Commercial Loan Placement Kit](https://no-cache.hubspot.com/cta/default/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a)   [![Subscribe to the Commercial Loans and Fun Blog](https://no-cache.hubspot.com/cta/default/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc)     Topics: [commercial loan officer training](https://info.c-loans.com/topic/commercial-loan-officer-training) ### George Blackburne III Owner of C-Loans, Inc. ![george blackburne photo](https://info.c-loans.com/hs-fs/images/george-blackburne-photo.jpg?width=156&height=217&name=george-blackburne-photo.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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