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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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sale-Leasebacks Provide Capital for Core Business Investment 

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

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

Understanding Today's Underwriting Criteria Makes Refinancing Easier 

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

Understand Lender Criteria to Finance Manufactured-Housing Communities 

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

A Taxing Situation 

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

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

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

Struggling Properties Can Exercise Workout Options to Improve Financial Health 

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

What's Your Exit Strategy? 

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.