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Gross Lease vs Net Lease: What’s the Difference?

A variety of commercial leases are available. This helps ensure there is something available to fit any need and most challenges.

There are two main types of commercial leases. The first is a gross lease, and the second is a net lease. It is also sometimes called gross rent vs net rent. The type determines who pays for various expenses associated with the use of … Read More

What is a Commercial Property Appraisal? What Does it Cost?

Accurately assessing a commercial real estate property’s value is essential for multiple reasons. Buyers, sellers, lenders, and tax authorities all need to know how much a property is worth, so they can accurately price, underwrite and tax the property. Getting a commercial property appraisal is the industry-standard way to value commercial real estate properties.

What is a Commercial Property Appraisal?

The role of a commercial … Read More

FHA Loan Eligibility: FHA Loan Requirements Explained

What Is an FHA Loan?

An FHA loan is a type of government-based secured loan. It’s issued by the Federal Housing Administration (FHA). With this type of program, qualified borrowers can access a loan with potentially lower interest rates and with fewer restrictions. FHA loans are underwritten and administered by third-party lenders, though the federal government backs them.

Types of FHA Loans

To … Read More

What is a Mezzanine Loan in Real Estate, and How Does It Work?

Acquiring new commercial real estate is capital-intensive, and sometimes investors need more capital than they can obtain through primary loan programs. Investors may be able to raise more capital through dilution — or they might take on a mezzanine loan. Here’s what a mezzanine loan in real estate is.

What Are Mezzanine Loans in Real Estate?

Mezzanine loans provide subordinate financing for new real estate … Read More

How Much Do Property Managers Charge?

Taking care of investment properties requires a lot of work. Finding tenants, tracking down late payments, attending to maintenance and repairs, and evicting tenants if necessary all take time and effort. For many property investors, hiring a property manager is well worth the property management fees charged. It’s efficient to pay someone else who specializes in this work to take care of everything.

What Does … Read More

Guide To Commercial Multifamily Real Estate Loans

Multifamily commercial real estate loans give investors capital that can be used for acquiring, repairing, or improving multifamily residential properties.

Loans are available for virtually all types of multifamily housing, and many loan programs have specific features that make them well-suited for certain types of housing.

If you need capital for a property, make sure you choose whichever multifamily loan is best suited for your … Read More

Commercial Real Estate Loans: What You Need To Know

Commercial real estate loans grant property investors access to capital for the acquisition, repair, or improvement of real estate properties. Lenders offer many different types of commercial property loans, and each one has unique features that make it advantageous in certain situations.

Investors need to choose the right loan product for their property and purpose.

What is a Commercial Real Estate Loan?

Commercial real estate … Read More

Loan To Cost (LTC) Ratio – Understanding LTC vs LTV

Understanding loan to cost meaning is quite important to investors. This ratio is a valuable metric used in commercial real estate construction (and other areas) to determine whether a transaction may be profitable or beneficial to that investor. It compares the cost of financing a project (usually as a loan) to the cost of building the project. By utilizing this metric, lenders can better determine … Read More

Loan To Value (LTV) Ratio Overview & Formula

Loan to value ratio is a standard metric that lenders use to assess default risk and qualify commercial real estate loans. While it’s far from the only data point lenders consider, it’s one of the most basic and often checked early on during the loan application process.

What is a Loan to Value Ratio?

Loan to value (LTV) ratio is a straightforward way to measure … Read More

Guide to Business Credit Scores

Business credit scores can have a dramatic impact on the availability and cost of financing, and any impact is only magnified for commercial property financing where investors need to borrow large sums. For investors, developers and managers, understanding the role of a company’s financial score is essential.

What is a Business Credit Score?

The purpose of a business financial score is to help various … Read More