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Cover Your Assets 

Lenders holding commercial real estate secured loans want to ensure that, if a borrower goes bankrupt, the collateral property will not be consolidated with the borrower's other assets. To ease such fears, borrowers use "bankruptcy remote" single purpose entities, or

TI Tactics 

All variables being equal, prudent financial managers no doubt would borrow funds at 7 percent rather than 9 percent. So when it comes to the $200 billion financing market for tenant improvements, why do risk managers and corporate real estate

It's A Wrap 

While condominium demand outpaces supply in many markets, some lenders are starting to tighten their financing parameters in anticipation of a possible market slowdown. To maximize their opportunities in this changing environment, commercial real estate developers must carefully manage potential

Loan Liaison 

Appraisers and underwriters are involved in the commercial real estate financing process as objective sources to ensure that buyers and lenders do not let optimism for projects result in unfavorable transactions. However, sometimes these professionals base their assessments on data

IRA Investments 

Purchasing residential property using retirement funds has received a lot of press, but what's still new to many investors is the fact that commercial real estate also can be bought this way. In fact, the Internal Revenue Service allows individual

Looking for Leverage 

Small apartment properties can be an excellent way for first time investors to enter the commercial real estate market. Apartment properties with between five and 50 units are attractive investments because there is less competition for them. Buildings with five

Mobile Investments 

Investor demand for multifamily properties has driven up prices and lowered returns, causing many multifamily investors to seek niche product such as mobile home parks as an attractively priced alternative to traditional apartment buildings. These less familiar properties can offer

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,

Borrower Beware(1) 

Most commercial mortgage lenders charge application, due diligence, and loan commitment fees, but do your clients know what that money really is buying? Often, it is less than they think. The loan application process is becoming increasingly arduous as lenders

Be Resourceful 

While some commercial real estate investors secure financing through deals with their existing banks, most investors, developers, and owners derive the best terms when lenders compete for their business. Creating a competitive situation is the role of a commercial financing

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

Bridging the Gap 

The credit crisis has had a significant impact on commercial real estate and the availability of financing. Most lenders have reduced maximum loan to value thresholds to 65 percent and increased debt service coverage ratio minimums. Life insurance lenders are

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

Consider the Future When Negotiating Loan Document Details 

After the basic business terms have been agreed on, proper negotiation and execution of loan documents can make or break a commercial real estate deal. Whether acquiring an existing income producing property, developing a new property, or refinancing the debt

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

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

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.

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

Fast Funding 

Traditional financing is suitable for a multitude of commercial real estate transactions, which often allow several months of lead time to secure funds. But what happens when funding for a property transaction is required immediately or when borrowers are inexperienced?

Low Rates Help Insulate Commercial Markets from Unstable Economy 

Last year, the commercial real estate debt market slowed considerably from the double digit growth the industry experienced the past three years. Overall, at the end of second quarter 2002, the debt market had grown 3.7 percent from the end

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

Consider the Options 

When fully understood, properly prepared, and used correctly, real estate options are an excellent way for knowledgeable investors to conserve capital, create leverage, and reduce risks. Investors and clients who may be short on capital may find options a good

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

Construction Plans 

Sponsors and owners considering financing the construction of commercial real estate projects need to know how lenders evaluate a project's overall risk. Such understanding increases the likelihood that a developer's application for financing will be approved. Lenders view construction loans

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