3 types of loan officers to avoid
Tuesday, October 02
Bankers usually aren’t nearly as bad as old timey movies make them out to be. Yes, a banker is often motivated by money. After all, their business is money.But the majority of bank employees, more specifically loan officers, are honest people doing the best they can at their job.There are some to...
How lenders underwrite single-tenant permanent loans
Tuesday, September 25
Commercial real estate lenders typically underwrite a potential loan against a property by considering the rent and other revenue that it can generate, the expenses required to run it, and the overall track record of the owner (borrower). It certainly is more nuanced than that in reality, but it’...
Will lenders follow real estate equity out to opportunity zones?
Thursday, August 16
If you’re keeping up with commercial real estate trends, you may have heard some recent buzz about Opportunity Zones. Introduced by the Tax Cuts and Jobs Act of 2017, these zones are depressed economic areas where the government would like to spur business, jobs, and revitalization through the us...
Down Payment amounts for Commercial Real Estate
Friday, August 10
The idea of a “down payment” on a piece of property is simple in residential real estate. You put down some amount of money, and borrow the rest from a lender. Your income, net worth, and potentially some non-financial factors will determine the down payment percentage required.In commercial real...
Typical Structure of a Commercial Mortgage Term Sheet
Wednesday, August 01
Commercial mortgages are loans against real estate either used for a business purpose, or as an investment. They also apply to housing properties of at least 5 units (in the US). While most home buyers and residential real estate investors are at least familiar with the structure of a residential...
How and why NNN construction loans go up to 100% LTC
Friday, June 29
A commercial mortgage for construction (construction loan) at 100% Loan-to-Cost (LTC) covers both hard and soft construction costs in full, meaning the developer doesn’t need to put any of their own capital to work. It’s a dream scenario for sponsors (borrowers) that do not have the capital to in...