- 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
- 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
- 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
- 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
- Exporting Capital
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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,
- Financing Still Available for Well- Structured Technology Ventures
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Less than a year ago, landlords and lenders were trading warrants for security deposits and leasing space at exorbitant rents to technology tenants. Currently, with the Nasdaq below 2000 and capital spending for technology at a halt, corporate credit has
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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?
- 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
- 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
- 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
- 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