- 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
- A Taxing Situation
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As markets conditions continue to squeeze both landlords and their tenants, renegotiating loan terms can be an effective strategy for property owners to reduce overhead. But beware — the financial implications aren’t as simple as they sound. Many property owners
- Understand Lender Criteria to Finance Manufactured-Housing Communities
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Manufactured housing is a niche that offers potentially strong returns for some investors. Once thought of as simply mobile home parks, today's manufactured home communities are split into two primary categories landlease communities where residents own their homes and lease
- 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
- 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
- FHA Facts
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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
- Debt Transfer
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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
- Construction Plans
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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
- Financing Fusion
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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,
- Fast Funding
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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?
- 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.
- Cover Your Assets
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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
- Understanding Today's Underwriting Criteria Makes Refinancing Easier
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With historically low interest rates still available, many property owners are seeking to refinance their loans. However, they should be aware that today's lenders underwrite real estate values far differently than in the past by using a relatively new set
- Loan Liaison
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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
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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
- Know Your REITs
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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
- Experience Pays
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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
- It's A Wrap
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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
- Looking for Leverage
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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
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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
- Consider the Options
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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
- More Money
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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
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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
- Master Plans
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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
- VRDN Value
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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