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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

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

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

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

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,

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

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

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

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

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?

FHA Facts 

In today’s tight credit market, multifamily owners and developers are challenged with finding financing that works now as well as in the uncertain future. In such turbulent times, the Federal Housing Administration loan programs serve as good, reliable sources of

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

Experience Pays 

Experience counts, particularly for commercial real estate professionals involved in ground lease development. In addition, experience counts &mdash and can pay off profitably &mdash when choosing a ground lease lender. If a lender with the right experience is selected, under

Financing Fusion 

Many areas of the U.S. have an oversupply of office and industrial property, tight access to capital, and fewer and shrinking local businesses to sustain property absorption. During this turbulent period, the ownership leasing hybrid approach may provide an attractive,

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

SBA Solutions 

In the hyper competitive commercial real estate marketplace, successful brokers and agents can utilize a relatively little known yet highly effective financing source to help clients secure the ideal property for their needs. The Small Business Administration 504 loan program

Master Plans 

Financing a commercial real estate project based on its rental stream presents many challenges for property owners. These challenges intensify when deficiencies arise from vacant space, scheduled lease expirations, tenant concessions such as free rent, or other lease attributes that

Know Your REITs 

Today's almost instantaneous access to financial information along with corporate governance improvements have dramatically altered the commercial real estate landscape for investors interested in diversifying through real estate investment trusts. This additional capital has put non exchange traded REITs on

More Money 

Commercial real estate developers often use federal, state, and local tax incentives, including historic rehabilitation credits, brownfield redevelopment programs, and tax increment financing, to reduce their projects' costs. However, the arsenal of tax incentives is much more extensive than many

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

VRDN Value 

Commercial paper is one of the primary capital sources in today's global financial markets. Fortune 500 companies and other large corporations regularly sell commercial paper to finance many types of expenditures. However, security registration requirements, high transaction costs, public disclosure

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