As a commercial real estate investor, you've likely heard the phrase “loan-to-value ratio.” You likely also know that this ratio is important to your success in the loan application process. But what exactly is the loan-to-value ratio, and what do you need to know about this sum before entering into a loan agreement? We'll address these questions in this latest post, as we explain more about loan-to-value ratios.
Some people have the funds they need to start a business or make an investment, but others are going to have to find different means to achieve their goals. Many Americans need to borrow money to get their ventures off the ground, and that process starts with applying for a loan. So how do you go about doing this in a way that puts you in the great position to succeed?
If you are looking to invest in commercial real estate, you'll need to decide which type of commercial property you want to purchase. And in today’s market, you certainly have options.
Here is a list of some of the most popular types of commercial property and some reasons why they make sound investments.
If you have a mortgage on your commercial property, the thought of refinancing is always fairly top of mind. That’s because the relatively short term length of most commercial loans (5-7 years) makes refinancing a necessary part of your long-term financial strategy.
But investors don’t just refinance when their loan matures. There are numerous situations where securing a new loan can provide short and/or long-term benefits. Here are some of the most common reasons why a borrower might refinance their commercial property.
In the past, prospective commercial real estate investors had few options when it came to securing short-term, transitional loans for their properties.
Thankfully, private lenders and lending institutions have come up with some creative solutions to help investors, one of which is the commercial bridge loan. This loan provides more options for those in need of a temporary loan to help them prepare for more permanent financing.
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.