- Fannie Mae and Freddie Mac Offer Options for Multifamily Investors
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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
- Deliver the Details
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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.
- Entrepreneurial Mezzanine Financing Sources Offer Flexible Equity
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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
- Institutional Lenders Offer Viable Financing Alternatives
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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
- Back to Basics
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How can commercial real estate borrowers obtain financing and survive the capital markets mess? Is there a secret handshake to get a loan application or a password for a term sheet? In reality, the answer is far simpler Bring in
- Borrower Beware(1)
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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
- Agency Programs Provide Financing for Seniors Housing
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Less available capital is the result of overbuilding and profitability woes in today's seniors housing market. However, several viable options remain, including government backed financing. Lenders Change As recently as two years ago, seniors housing developers, owners, and potential buyers
- Be Resourceful
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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
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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
- Cool Down Costs
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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
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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
- Creative Currency
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In today’s real estate climate, making your property more marketable requires creativity and an open mind. Owners need to expand the benefits their properties offer. Along with physical aspects and pricing, the structure of the transaction, and your capabilities and
- Companies Can Improve Cash Flow With These Strategies
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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 Advantage
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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
- Federal Historic Tax Credit Aids Adaptive Reuse Developers
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For adaptive reuse projects involving historic buildings, developers often tap into a federal tax incentive program known as the historic rehabilitation tax credit. This program generates a credit that directly reduces taxes rather than offering a tax deduction such as
- Before the Build-Out
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In today’s competitive leasing market, build outs or other capital improvements are good ways for property owners to retain current tenants or attract new ones. Creating more open floor plans or providing additional capacity for new technologies can adapt older
- Bridging the Gap
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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
- Affordable Money
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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
- Repayment Options
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When defeasance became standard call protection for average commercial mortgage backed securities loans in 1998, the timing could not have been worse for borrowers. Yields on government securities declined steadily in 2001 and 2002 making defeasance increasingly more expensive as
- Struggling Properties Can Exercise Workout Options to Improve Financial Health
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This year is shaping up to be the most active period for real estate workouts since the early 1990s, primarily due to the declining value and performance of commercial properties during the economic slowdown. Tightening capital markets have compounded the
- Wait and See
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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
- What's Your Exit Strategy?
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There are many factors to consider when entering into a fixed rate commercial real estate loan what’s often forgotten is how to get out. Negotiating a solid exit strategy should be a critical aspect of all fixed rate loan originations.
- Rising Rates
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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
- Redefining Debt
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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
- Sale-Leasebacks Provide Capital for Core Business Investment
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The market for sale leasebacks — transactions in which companies sell and then lease back real estate assets — is growing at an estimated $10 billion to $15 billion annually. Continued increases are expected due to today's difficult real estate