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This weeks most popular article - Why You Should Join the Non-Recourse Loan Club?

Congratulations! If you are reading this and wanting to learn more about non-recourse financing – you have the opportunity to join one of the most exclusive groups in America – The Non-Recourse Loan Club.

There isn’t really a club. It is just that Non-Recourse Lending is one of the best-kept secrets that an elite group of mostly wealthy developers and investors of commercial real estate reap the benefits READ MORE

Commercial Loan Blog

17 Best Apartment Multifamily Loans 2019

By Terry Painter/Mortgage Banker

What are the best Apartment Multifamily loans in America? Which programs have the lowest rates and highest LTV’s?  What about interest only and prepayment penalties?  What does it take to qualify? Which programs require tax returns. Which apartment loan programs are assumable? Based on their rates, terms, and feedback from our clients these programs are ranked number 1–17.

The best Multifamily Loan Program based on rate and terms is HUD/FHA, featuring a fully amortizing 35 year non recourse fixed rate that is lower than most... more

THE SHOCKING TRUTH ABOUT CAP RATE

Cap Rate stands for capitalization rate and is used in commercial property valuations. Cap Rate is simply the net operating income (income minus expenses) divided by the purchase price or appraised value.

“There must be some mistake” Rick, my client said to me. “How can my property only be worth $5.25 Million when the exact same property 4 miles away sold for $5.6 million last year.” In fact, he was right on. He had gotten the blue prints to build his new 36 unit multifamily complex from his brother-in-law who had built and sold the exact same design last year. Rick’s apartment... more

DSCR: Debt Service Coverage Ratio

February 21, 2019

DSCR - most important factor for a prospective commercial lender to determine

Why is a DSCR - Debt Service Coverage Ratio needed?

DSCR stands for Debt Service Coverage Ratio and is the most important factor for a commercial lender to analyze the risk level of your business or investment property loan.  It is the DSCR that tells the lender that the net income  is more than adequate to support the loan payments.... more

Cap Rate Calculator

 

 

Use our Cap Rate Calculator to check your property

 

 

 

DON’T FALL INTO THE CAP RATE TRAP

“Are you kidding me?” my client asked.  “You’re telling me that the property taxes are going up by $19,500 when the county reassess the property I’m buying based on the purchase price after I own it?”

“Yes”, I answered.  “In California they do that.” 

“... more

Effective Gross Income - What is it?

February 24, 2018

Effective Gross Income is much simpler than it sounds, but also a lot more important than it may sound. It is the actual—and I mean actual—amount of money an investment real estate property has grossed in the past 12 months. Keep in mind that realtors when selling an investment or commercial property may brag that the property is fully rented and show you a pro forma or projection based on the... more

Recourse Loan Definition

February 19, 2018

So you're applying for a commercial real estate loan and you are told "this is a recourse loan." What is recourse?  Is this good or bad?  Does this matter?  Do you have a choice? Yes, it does matter. Often borrowers do not realize when they apply for an investment property or business loan, that if they default on the loan they can lose more than the real estate or equipment that is... more

Commercial Loans: How Do They Differ From Residential Loans?

February 15, 2018

Commercial real estate loans differ in so many ways from residential loans. It is a different world, or you could say "a different planet.” Here are some differences:

1. On a historical basis, commercial loans have been done with concern to the property first and foremost. And residential loans have been done with concern to the borrower. Since the recession though,... more

How do you Finance an Apartment/Multifamily Building?

February 9, 2018

To finance an apartment building you need to complete 7 tasks: analyze the income of the property, analyize market rents, estimate the appraised value, analyze the condition of the property, analyze your financial strength, research lenders, and apply for the best loan that you qualify for.

 

7 Basic Steps to Finance an Apartment Building/Complex

1. ... more

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