Last Updated: July 9, 2025
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Overview
This module delivers institutional-grade analysis of loan structures and covenant terms impacting real estate financing risk. It evaluates debt agreements, repayment schedules, covenants, and flexibility provisions to identify potential constraints and risk factors.
The RISI Framework Breakdown for Loan Structure and Covenant Assessment
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional loan and covenant analyst. |
| I | Insight | Analyzes loan terms, covenants, repayment conditions, and potential financing constraints. |
| S | Strategy | Simulates institutional risk evaluation and mitigation strategies based on loan structure. |
| I | Impact | Provides actionable insights on debt flexibility, covenant risks, and refinancing options. |
How to Use the Loan Structure and Covenant Assessment Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target property or market:
- Role Prompt:
Activate ProFinRisk Mode for Real Estate Institutional Level Analysis - Loan Terms Prompt:
Summarize key loan terms and covenant provisions for financing related to [TARGET]. Highlight potential risk factors and flexibility constraints. Limit output to one paragraph. - Covenant Analysis Prompt:
Analyze covenant compliance risks and potential breaches in financing agreements for [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional risk assessment and management strategies regarding loan structures and covenants for [TARGET]. Outline expected mitigation behaviors. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize investment implications from loan structure and covenant analysis. Should a risk-aware investor anticipate refinancing challenges or covenant negotiations? Provide one clear, actionable paragraph grounded in institutional behavior.
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