Financing the Deal: Why the Debt Service Coverage Ratio Matters
A typical commercial real estate lender receives dozens of new loan requests each month. As such, it is necessary to have a mechanism to filter through the deals to identify which ones have the best chance of being repaid. One of the ways that lenders do this is through the use of a metric called […]
Understanding the Capital Stack: Definition, Examples, & More
A typical commercial real estate asset is quite expensive, which means that most investors do not have the resources to purchase it with cash. While this may seem like a negative, it is actually an opportunity. In fact, one of the major benefits of a commercial real estate investment is the wide availability of debt […]
Commercial Real Estate Investment Analysis – Are the Numbers Real?
Every commercial real estate (“CRE”) transaction in the United States follows a similar lifecycle, a property is discovered, a significant amount of due diligence and underwriting is performed to ensure the asset is investable, an offer is made, and the transaction is closed. While each of these phases of the transaction is important, perhaps none […]
