Cap Rate for Commercial Real Estate
Capitalization rates calculate the expected annual return on investment that commercial real estate properties will generate. Cap rates can show investors how much they might expect to receive from a particular property, and thereby provide a metric for evaluating the property.
Debt yield hasn’t traditionally been a primary commercial real estate loan underwriting metric, but more lenders are incorporating it into their criteria. In the current real estate market, measuring debt yield ratios provides lenders with a stable assessment regardless of unusual or changing conditions.
What is Debt Yield?
Debt yield is a standardized way to measure net operating income (NOI) against total … Read More
Commercial real estate (CRE) is an attractive investment for investors for many reasons, but the tax benefits are a significant draw. Over the course of the life of an investment, these tangible benefits can lead to a substantial difference in returns.
Understanding the tax benefits associated with CRE is a tall order, but if you’re considering an investment, here are eight top … Read More
The closing costs on a commercial investment property are can become substantial, often reaching tens of thousands. If you’re purchasing an investment property, here’s a breakdown of the various commercial property closing costs you can expect.
Flat-Fee Commercial Property Closing Costs
The simplest commercial property closing costs are flat-fee expenses that remain relatively standard across all investment properties. These include title insurance, … Read More
A personal financial statement is often among the required documentation when applying for a business loan. Even though business loans are distinct from personal loans, lenders might want to see the borrower’s personal financial situation for a variety of reasons. If you’re applying for a business loan soon, here’s an explanation of what this document is and how to go about making a personal … Read More
One of the first steps in applying for a commercial mortgage loan is creating a Schedule Of Real Estate Form. Learn all about it and access a free excel template.
Step-Down, Fixed Fee, Yield Maintenance, or Defeasance. The most common form of prepayment penalties. This guide will teach you the difference.
Did you know that Freddie Mac’s total mortgage portfolio grew at a 22.4% annualized rate in December 2020? If you’re a commercial real estate investor, then you might be interested in how you can use Freddie Mac Multifamily Loan products to find a loan for your acquisition or refinance. You might also be asking yourself questions such as:
What … Read More
One of the biggest areas of focus for people investing in commercial real estate is how to handle the tax implications. If investors aren’t well-versed in how to legally reduce their tax burden, they could end up paying much more than they have to. That would make their great investment a reasonable one, at best. At worst, it could mean their investment would … Read More
Learn how to potentially save money on capital gain when selling your commercial property through a 1031 exchange program.