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Exporting Capital 

As economies throughout the world continue to expand, the flood of real estate investment capital headed overseas has swelled to record levels. This unprecedented growth is expected to continue throughout the year and well into 2006. Despite a weak dollar,

Entrepreneurial Mezzanine Financing Sources Offer Flexible Equity 

In recent years, mezzanine debt and equity financing has been growing steadily into a major source of funding for all types of commercial real estate projects. On a marketwide basis, the real estate mezzanine financing sector represents 10 percent of

Financing Still Available for Well- Structured Technology Ventures 

Less than a year ago, landlords and lenders were trading warrants for security deposits and leasing space at exorbitant rents to technology tenants. Currently, with the Nasdaq below 2000 and capital spending for technology at a halt, corporate credit has

Fannie Mae and Freddie Mac Offer Options for Multifamily Investors 

Property owners with large multifamily portfolios may be aware of the benefits of obtaining financing from the Federal National Mortgage Association, known as Fannie Mae, and the Federal Home Mortgage Corp., dubbed Freddie Mac. Generally, these two organizations can handle

Institutional Lenders Offer Viable Financing Alternatives 

Institutional lenders such as life insurance companies and Wall Street conduit lenders offer various financing options for commercial real estate ventures. In tight economic circumstances, commercial real estate professionals carefully should study the available options to make wise decisions for

Redefining Debt 

Downsized operations and scarcity of tenants have temporarily left many business owners and developers with too much real estate and too much debt. Refinancing often is the solution of choice, but doing so isn&rsquo t always viable. Owners or developers

Pre-Underwriting Helps to Sell Properties 

Residential homebuyers often get pre qualified to facilitate their negotiating and purchasing process. Commercial property brokers can use a less common but similar process for their income property listings — although it's the property that gets pre qualified, or pre

Private Mortgage Loans Provide a Short-Term Financing Alternative 

Private mortgage loans are made by private lenders instead of traditional financing sources such as banks, lending institutions, or government agencies. They usually are short term (6 months to 3 years) hard money or asset based loans, and the decision

Rising Rates 

Recent commercial real estate capital market demand has caused capitalization rates to decline significantly, which has inflated real estate values despite poor fundamentals. Yet most experts believe that cap rates soon will climb. Investors should assess their properties to ensure

Wait and See 

Last year, the commercial real estate debt market again decreased considerably from the last decade's double digit growth rates. This slower growth indicates a lower level of transactional activity —buying, selling, and refinancing — taking place as the industry awaits

Affordable Money 

With the ever increasing need for more affordable housing, both nonprofit and for profit developers must consider every available below market rate financing program to make such projects economically feasible. Viable sources may be 501(c)(3) bonds for nonprofit developers

Debt Transfer 

While new money is difficult to find in the current economic climate, loan assumptions may provide the prospective debt commercial real estate buyers need to close deals. A loan assumption is exactly that A property buyer assumes a mortgage loan

Separation Anxiety 

In February the White House published a report to Congress mandated by the Dodd Frank Financial Reform Bill. The white paper indicated a significantly reduced role for the government sponsored entities Fannie Mae and Freddie Mac, winding down their conventional

Loan to Own 

Given the current credit market constraints, seller financing may be a way to bridge the financing gap facing buyers and sellers in today&rsquo s commercial real estate market. Seller financing is a transaction in which the seller makes a secured

Making It Work 

Investors soon may feel the effects of a cooling real estate market through subtle and not so subtle shifts in the way lenders view commercial real estate loans. The industry experienced strong surface growth last year National overall vacancy rates

Lenders Talk TICs 

Tenancy in common transactions involve a number of unique features. While currently there are no clear cut guidelines on how TIC deals must be structured, lenders that finance such projects are careful to impose certain requirements that usually are not

Loan Language 

Commercial real estate finance remains in a state of flux. Lenders are re entering the market with new policies and underwriting criteria. Many lenders have toughened the terms of their form loan documents. It is important for borrowers to understand

Multifamily Property Owners Benefit From Competitive Financing 

The current low interest rates present a double edged sword for many property owners The rates offer increased cash flow opportunities, but they also allow tenants to qualify for higher loan amounts and motivate them to move out of apartments

New Funding for Affordable Housing Encourages Public/Private Partnerships 

Affordable housing is a critical socioeconomic issue in many regions, and demand is rising nationwide. Yet financing and developing affordable housing can be challenging. Many affordable housing projects involve more planning and entail greater risks than similar market rate projects

Mind the GAAP 

GAAP is widely used. It is required for public companies such as publicly traded real estate investment trusts, and often it is demanded of private real estate companies by institutional investor partners. But GAAP is not the only choice for

Cool Down Costs 

While occupancy, maintenance, and zoning matters consume a great deal of property owners and managers’ time, these professionals also must consider other important business components, such as energy costs, to remain competitive. When left unmonitored, energy costs can become a

Companies Can Improve Cash Flow With These Strategies 

Corporate real estate professionals always look for creative ways to help their companies manage costs while growing their core businesses. In today's cooler economic climate, finding them is not a luxury — it's a necessity. Myriad corporate financing strategies are

Cost-Segregation Solutions 

Cost segregation is an accepted Internal Revenue Service method of allocating the purchase price paid for real estate property. Generally, cost segregation enables owners to increase the depreciation deductions from their properties, providing substantial present value benefits by reducing income

Cost-Segregation Advantage 

On Feb. 13, President Bush signed the Economic Stimulus Act of 2008 into law. The legislation is intended to encourage spending by providing advance refund rebates to individual taxpayers along with business tax breaks in the form of accelerated depreciation

Deliver the Details 

In many markets commercial real estate professionals rely on small properties as the backbone of their business. Unfortunately these properties sometimes fail to qualify for the maximum amount of financing required, which may prevent owners from selling at optimal prices.