David Luke
Yield Maintenance Calculator: Calculate Your Prepayment Fees
Commercial mortgages have numerous stipulations that help to protect the lender’s investment. One of those is a prepayment penalty called yield maintenance. Commercial lenders may use this type of penalty as a way to ensure they receive a profit from lending to the borrower.
What Is Yield Maintenance?
In commercial mortgages, yield maintenance is a type of fee paid by the borrower to the lender … Read More
What is a Trailing Twelve Months Period?
The financial performance of commercial real estate property is reported over various periods, including both back-looking and forward-looking periods. One of the most common periods used when evaluating multifamily properties is the trailing 12-month period.
What Is A Trailing 12-Month Period?
The trailing 12-month period is the most recent 12 months. The last full month constitutes the final month in the period, and the one … Read More
Are Commercial Loan Origination Fees Negotiable?
Lenders charge a variety of fees when underwriting commercial real estate loans. One of the most common commercial loan fees and charges is the loan origination fee.
What Are Loan Origination Fees?
Loan origination fees are charged to cover the overhead associated with actually originating a loan.
Origination encompasses the entire process of entering into a loan agreement, from initial application to final signing. The … Read More
Cash on Cash Return vs IRR: Understanding the Difference
For commercial real estate investors, having access to as many metrics as possible to provide insight and comparison opportunities is critical. There are various metrics available, including cash on cash return and internal rate of return, both of which enable investors to create a more even comparison between properties when trying to decide which to choose for investment.
Most investors set their own threshold of … Read More
Top 20 Property Management Companies of 2024
The best property managers efficiently run large multifamily investment properties, maintaining efficiencies and maximizing returns. If you have student housing, senior housing, income-based apartments, or any other type of multifamily investment property, these are the top 20 property management companies according to the National Multifamily Housing Council. The NMHC has ranked these companies for 2023 in the following order, and included … Read More
What is a Commercial Property Appraisal? What Does it Cost?
Accurately assessing a commercial real estate property’s value is essential for multiple reasons. Buyers, sellers, lenders, and tax authorities all need to know how much a property is worth, so they can accurately price, underwrite and tax the property. Getting a commercial property appraisal is the industry-standard way to value commercial real estate properties.
What is a Commercial Property Appraisal?
The role of a commercial … Read More
FHA Loan Eligibility: FHA Loan Requirements Explained
What Is an FHA Loan?
An FHA loan is a type of government-based secured loan. It’s issued by the Federal Housing Administration (FHA). With this type of program, qualified borrowers can access a loan with potentially lower interest rates and with fewer restrictions. FHA loans are underwritten and administered by third-party lenders, though the federal government backs them.
Types of FHA Loans
To determine eligibility … Read More
What is a Mezzanine Loan in Real Estate, and How Does It Work?
Acquiring new commercial real estate is capital-intensive, and sometimes investors need more capital than they can obtain through primary loan programs. Investors may be able to raise more capital through dilution — or they might take on a mezzanine loan. Here’s what a mezzanine loan in real estate is.
What Are Mezzanine Loans in Real Estate?
Mezzanine loans provide subordinate financing for new real estate … Read More
How Much Do Property Managers Charge?
Taking care of investment properties requires a lot of work. Finding tenants, tracking down late payments, attending to maintenance and repairs, and evicting tenants if necessary all take time and effort. For many property investors, hiring a property manager is well worth the property management fees charged. It’s efficient to pay someone else who specializes in this work to take care of everything.
What Does … Read More
Loan to Value Ratio Calculator: What’s Your LTV Ratio?
Loan to Value Ratio Calculator: What’s Your LTV Ratio?
Loan to value ratio is a standard metric that lenders use to assess default risk and qualify commercial real estate loans. While it’s far from the only data point lenders consider, it’s one of the most basic and often checked early on during the loan application process.
What is a Loan to Value Ratio?
Loan to … Read More