For many commercial real estate investors, securing financing is the biggest hurdle when it comes to purchasing a property. You may have an attractive property in mind and a solid long-term investment plan in place, but if you can't come up with funding in time, someone else is going to capitalize.
Every commercial real estate investor breathes a sigh of relief when they are approved for a loan, and while obtaining financing is the biggest hurdle for many, not every loan is a good one. Many investors make mistakes that place them in a precarious position down the road as they work to achieve their financial goals.
Commercial real estate financing can take many different forms. Some borrowers are looking for a permanent financing option as they look to execute their long-term investment strategy. Others need a more short-term solution in the form of a transitional, or “bridge” loan. Here is a quick rundown of this type of loan – perhaps it’s the idea solution for your current financial needs.
As with any sector or industry, the world of financing and commercial real estate has its own terminology. It can take some time to get up to speed on what these terms mean and how they affect a commercial real estate investor. But if you're serious about entering into this area of business, you need a firm understanding of real estate and investment terminology. Here is a brief explanation of some of the most common commercial real estate terms.
You may be thinking it's time to either create or improve your portfolio. If you're new to the world of business, and you're not sure what a portfolio is, it's simple. A portfolio is your range or "collection" of different opportunities that you've decided to invest in, hoping that they will generate a sizable return of profits to you.
Here are a few ways commercial real estate investments can help build your overall portfolio.
At the beginning of 2018, federal tax reforms came into effect that will have a beneficial impact for many commercial real estate owners. But if you want to take advantage of these tax reforms, it’s important to understand what they are and how you can use them to increase your profits and save money. Read on to learn about 3 instances where these tax reforms can make a serious impact for commercial real estate investors.
Here is some good news for commercial real estate investors: You’ve got options! Today’s market is comprised of a number of lending alternatives, from traditional banks to hard money lenders and everything in between.
These institutions offer a wide range of loans – to select the best option for you, it’s important to understand the different options available and their pros and cons.
To help you gain a basic understanding of today’s commercial lending environment, today we’re going to cover the four main types of commercial real estate loans available to investors.
There's a steep learning curve when you first get involved in commercial real estate investing, and one concept that might be new to you is the rent roll. If you're new to commercial property ownership, then you may have heard this term for the first time recently and have questions about it. Rent rolls are crucial when you're purchasing a property or applying for a multifamily building mortgage because rent rolls can tell you a great deal about the property’s income-generating potential.
One of the most important factors any lender will consider when you apply for a commercial mortgage is your credit score, so it can be nerve-racking to put in your application if you know your score could be better. The good news is that if you do currently have a less-than-stellar personal credit score, there are steps you can take to improve it that will help you secure the commercial financing you need to realize your real estate dreams.
Refinancing a commercial loan may seem like a headache that’s not worth the trouble, but there are many advantages to a commercial refinance that you may not be aware of. One of the chief reasons to refinance is that you can negotiate better terms and a better interest rate, and this could save you a great deal of money in the long run. However, there are also other benefits to refinancing, and today you'll find out what they are.
Investing in commercial real estate might be a great way to diversify your investment portfolio and plan for the future. However, people who are new to real estate investing often wonder what the pros and cons of commercial real estate are and whether it's better to invest in commercial or residential properties. The truth is that commercial real estate investing has both advantages and disadvantages, and today we'll talk a little more about what they are.
An operating budget for a multi-family property can help you track performance and profits, show you where you could cut costs, help you plan for capital improvements, identify potential problem areas, and give you a good reference point for future reviews. There's some great software out there that will make it easy for you to create your budget, but here's what you need to know to get started.
Investors looking to expand their portfolio have a number of options in today’s real estate market. While many investors are finding success with commercial real estate properties, such as retail strip centers and office buildings, the less-experienced investor may want to focus on an investment vehicle with fewer moving parts.
If you’re looking into single family rental properties as you plan your next investment, be sure to read these key points to bolster your knowledge and position yourself for success.
Your credit score is one of the primary factors lenders will consider as they review your commercial loan request. If you have experienced financial difficulties in the past -- such as a bankruptcy or foreclosure -- or you have simply fallen behind on making monthly payments, this aspect of the process could become a major hindrance as you work to secure mortgage financing.
When people talk about getting the best loans for commercial and real estate endeavors, they're often talking about finding the lowest rate commercial mortgage. However, while the interest rate is a significant consideration when applying for commercial loans, it isn't the only one, and there are even times when it’s better to opt for a loan with a slightly higher rate in order to realize other advantages.
A distressed commercial property can demand a sizable investment of time and money. But if you can purchase the property for way below the possible future value, there is a potential for a great investment opportunity. If you are considering rehabbing a distressed property, here are some tips to help you through the process.
Refinancing a commercial loan can be a great opportunity for real estate investors to secure a better rate and more favorable terms, avoid balloon payments, and even access equity that they have built up in their property. But the executing a refinance can be stressful – especially if you have never been through the process before. Here are a few tips to help you stay confident as you refinance your commercial investment property.