Overview of Commercial Real Estate Financing Options
Commercial real estate assets are expensive with prices often running into the tens or hundreds of millions of dollars. As such, they are unlikely to be purchased with cash. Instead, investors often purchase real estate investments with equity (cash) and debt in a mix referred to as the “capital stack.” In this article, we are […]
What Commercial Real Estate Investors Need to Know About The Cash on Cash Return
There are many different metrics that can be used to measure a commercial property’s return. For example, the Internal Rate of Return (IRR) is used to measure a property’s compound annual return, the capitalization rate or “Cap Rate” is used to measure the annual return assuming an all cash purchase, or Net Operating Income can […]
An Introduction to Bridge Loans
When purchasing a commercial real estate asset, there are a number of options that can be used to finance the transaction. In the most traditional option, a borrower would obtain a fixed rate, commercial real estate loan with a term that matches their anticipated investment holding period and would continue to make the required payments […]
What is a Non-Recourse Loan?
One of the major benefits of a commercial real estate investment is that debt is widely available for most property types at terms that are generally favorable for the borrower. In addition, there are a number of different lending programs whose terms – like the interest rate, amortization period, or term – can be adjusted […]