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Understanding Mortgage Basis Points in Commercial Real Estate

What are Mortgage Basis Points

In every financial transaction, the details determine the rate of return or profitability of any deal. One component of that process is mortgage basis points. Base points are used in a wide range of financial components of any commercial mortgage transaction. This includes spreads and fees.

Understanding Mortgage Basis Points

Sometimes called BPS, mortgage basis points help to measure financial instruments. Most often, each point … Read More

What are Rental Concessions, and When Should You Offer One?

What are Rental Concessions

Commercial property investors need to offer potential tenants attractive terms or else risk having the best tenants sign leases elsewhere. Rental concessions are one common way to entice tenants with more attractive terms. Here’s a look at what lease concessions are, their advantages and disadvantages, and when you might use them.

What is a Rent Concession?

A rental concession is a temporary or permanent modification of … Read More

Commercial Hard Money Loans: Everything You Need to Know

Commercial Hard Money Loans

Hard money commercial loans could be a viable option for some investors looking for a way to buy real estate outside the traditional methods. For those considering these loans, it is critical to learn their requirements and implications.

What Is a Commercial Hard Money Loan and How Does It Work?

Commercial hard money lenders have different rules and requirements for borrowers to follow. They also … Read More

What is an Anchor Tenant? (And How to Find Them)

Anchor Tenant

Commercial real estate not only requires a deep understanding of the market but also of different tenant types. One critical tenant of any successful commercial retail or office property is the anchor tenant. 

What Does an Anchor Tenant Mean?

An anchor tenant is a large and well-known business that occupies a significant amount of space in a commercial real estate property. This type of tenant … Read More

Real Estate Syndication: A Guide for Investors

Real Estate Syndications

Real estate syndication is a powerful investment strategy that allows multiple investors to pool their resources and purchase properties that they would not be able to afford individually. It’s a great way for individual investors to benefit from the economies of scale, shared expertise, and reduced risk that come from pooling resources with other like-minded individuals. Here’s a guide on why and how you might … Read More

Partially Amortized Loan vs Fully Amortized Commercial Loans

Partially Amortized Loan Vs Fully Amortized Commercial Loans

A partially amortizing loan is not an uncommon tool for commercial real estate investors because of the benefits it offers. All loans amortize in some way, no matter if they are commercial loans or not. There are two main options: fully amortizing and partially amortizing. Understanding the difference helps ensure investors make the best decisions about their specific needs.

What Is Amortization on a Commercial … Read More

What is Commercial Ground Rent and How Does it Work?

Commercial Ground Rent

Commercial ground rent is an important concept for property owners. When it comes to ownership ground rent situations vary somewhat, but their ultimate premise remains the same.

In these situations, the property owner owns the land but not necessarily the building on that land. The owner charges a fee for the use of the land. Here is what you need to know about these rents, … Read More

Operating Expense Ratio Calculator: How to Calculate OER?

Operating Expense Ratio in Commercial Real Estate

The operating expense ratio, sometimes called expense ratio or OER, is an important factor for all commercial real estate investors and property owners. It is a metric that compares the amount of income that a commercial property generates to the amount of money it costs to operate that property.

Why Does Operating Expense Ratio Matter?

The operating expense ratio helps show the cost to operate … Read More

What is a Rent Roll? How is it Used in Commercial Real Estate?

What is a Rent Roll in Commercial Real Estate

Any potential lender or investor needs to utilize commercial rent roll in the evaluation of any property. It provides insight into if the property is a good risk or not.

That is why commercial property rent roll tends to be one of the first things investors ask for when considering the investment into the property. It contains a significant amount of information about the tenants … Read More

Floor Area Ratio Calculator: How to Calculate FAR?

How to Calculate Floor Area Ratio for Commercial Projects

Understanding the floor area ratio is important for commercial real estate investors. The metric is specifically important for developers looking to make the most use out of the property their commercial building will occupy. Here are some insights into what it is, how the floor area ratio formula works, and when it is used.

What Is Floor Area Ratio (FAR)?

The floor area ratio, often … Read More