Federal Reserve’s Reaction to Inflation, Unemployment, and Effect on Interest Rates
Major highlights from last week’s Federal Reserve call include 1) Inflation is currently at 5%, which is above the Fed’s traditional 2% target; 2) The Federal Reserve is looking to pull back some of the quantitative easing it has deployed since the start of COVID; and 3) Before any plans to increase interest rates, the Federal Reserve will be looking to taper off government … Read More
Top Tax Benefits When Investing in Commercial Real Estate
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 commercial real estate … Read More
How Much Are Commercial Property Closing Costs?
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 real estate closing costs are flat-fee expenses that remain relatively standard across all investment properties. These include title insurance, appraisals, environmental … Read More
How To Build a Personal Financial Statement For Commercial Loans
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 financial … Read More
How To Build a Schedule Of Real Estate Owned (SREO) Form
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.
Types of Prepayment Penalties in Commercial Real Estate Financing
Step-Down, Fixed Fee, Yield Maintenance, or Defeasance. The most common form of prepayment penalties. This guide will teach you the difference.
Cost Segregation: Pay Less Taxes on CRE Investments
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
A Simple Guide to 1031 Exchange In Commercial Real Estate
Learn how to potentially save money on capital gain when selling your commercial property through a 1031 exchange program.
The Difference in SBA 504 Commercial Real Estate Loan and SBA 7(A) Loans
If you need a loan to invest in growing your small business, it is good to have options—and you do. For example, the U.S. Small Business Administration (SBA) offers its SBA 504 loan and its SBA 7(a) loan. Both have advantages.
But to benefit, you must choose the right loan for your project, your financial circumstances, and your timeframe. Let’s look first at the broadest differences … Read More
Non Recourse Versus Recourse in Commercial Real Estate Finance
As a commercial real estate investor seeking a loan, you have lots of choices of loan terms. That is a good problem to have but at first, it can be a bit overwhelming. Just find the right commercial real estate lender, and they will work with you to craft a loan that comfortably fits your individual situation.
One of the first and most important choices … Read More