commercial real estate: Adding Value in a Down Market
- 01/27/09 06:28 AM
Over at Peter Pays Paul I posted on how a commercial mortgage lender can add value in the current market. Here is a snippet of whaty I wrote:
In the current market brokers are having more difficulty providing these items of value. LTVs have decreased, rates have gone up, and many banks are only lending to existing customers. How does a broker survive and add value in this market?
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commercial real estate: Affect of Vacancy and Rental Rates on Commercial Real Estate Value
- 11/18/08 09:40 AM
Imagine that little retail center near your house.You know the one. It has your favorite coffee shop, the weird home decor shop, a woman’s clothing boutique, the nail shop, and the national auto parts store. Over the years you’ve seen the stores change. Different shop owners have come and gone. The coffee shop has been there for a while. The woman’s clothing store is only a year old. As you drive by you notice a “Going Out of Business” sale going on in the home decor shop. You’ve talked with the owner of the woman’s boutique and she is … (0 comments)
commercial real estate: How to Find Distressed Properties
- 07/08/08 05:20 AM
This the third post in a series I am writing on finding distressed properties. Posts 1 & 2 can be found here. Marketing Marketing to owners of distressed property is the third method of finding distressed property. Marketing Costs For purposes of this post we will define marketing as the process of informing owners of distressed property, that you are interested in purchasing their property. Almost all forms of marketing will have an out of pocket cost, before you see a return on the marketing investment. These costs may include printing, postage, design, or mass media expenses. Marketing Budget It is … (2 comments)
commercial real estate: How to Write an Executive Summary for a Commercial Mortgage
- 05/19/08 08:07 AM
When I am reviewing a loan file one of the first things I look at and look for is the executive summary or loan summary. A well written executive summary speaks to the quality of the borrower and the value of the project. The goal of well written loan summary is to give the underwriter enough information to understand the commercial loan and to determine if the loan will fit within the lender’s lending guidelines. Below are items that should be included in a well written and complete executive summary. Salient Facts Lenders want to know the details of the commercial … (4 comments)
commercial real estate: Commercial Income Property Valuation
- 10/30/07 07:57 AM
Commercial real estate is a great addition to the savvy real estate investor’s portfolio. One of my previous employers said that he would only invest in commercial real estate and not in residential. He reasoned that commercial real estate that housed a business would always be better maintained than a leased residential unit. “A business must keep up its workplace or their customer’s will stop patronizing the business.” Commercial real estate is financed more stringently than residential real estate. Often more capital is required to invest in a commercial property than in a residential property. Most banks and institutions require a … (1 comments)
commercial real estate: Underwriting a Commercial Loan
- 10/23/07 07:00 AM
How Commercial Mortgages are Underwritten Commercial mortgages are underwritten differently than residential loans, hence the loan package needs to be assembled in a different fashion. When dealing with improved commercial real estate the property's net income is the most important factor in underwriting the loan. Debt Service Ratio The property's net income determines its ability to pay the monthly mortgage payment. This is commonly referred to as the debt service coverage ratio (DSCR) or the debt service ratio (DSR). For this reason a borrower's income is less important than the commercial property's net income. Some lenders will take into account … (3 comments)
commercial real estate: Commercial Hard Money Loans an Explanation
- 10/19/07 11:36 AM
Most commercial real estate agents don't consider the need to have a source for hard money. Owners and investors in commercial real estate are often well capitalized and have a bank relationship that allows them to finance commercial property with ease. Because of this,commercial REALTORS® do not have a consistent need to provide there client with a referral. For experienced commercial agents this is rarely something they need. Use of Commercial Hard Money Lenders Where do hard money lenders, like Owens Financial Group - California hard money lender, come into play? Speed A commercial hard money lender is best used … (1 comments)
Over at Peter Pays Paul I posted on how a commercial mortgage lender can add value in the current market.
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