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Cap Rate Calculator: Calculate Property Cap Rates

What is cap rate?

Cap Rate for Commercial Real Estate

Capitalization rates calculate the expected annual return on investment that commercial real estate properties will generate. Cap rates can show investors how much they might expect to receive from a particular property, and thereby provide a metric for evaluating the property.

Cap rates are often looked at by lenders when financing commercial property, this is one metric that … Read More

Debt Yield Calculator: Here’s How to Calculate Your Yield

Explanation on what debt yield in commercial real estate is

Debt yield hasn’t traditionally been a primary commercial real estate loan underwriting metric, but more lenders are incorporating it into their criteria. In the current real estate market, measuring debt yield ratios provides lenders with a stable assessment regardless of unusual or changing conditions.

What is Debt Yield?

Debt yield is a standardized way to measure net operating income (NOI) against total loan … Read More

Top Tax Benefits When Investing in Commercial Real Estate

Top 10 Commercial real estate tax benefits

Commercial real estate (CRE) is an attractive investment for investors for many reasons, but the tax benefits are a significant draw. Over the course of the life of an investment, these tangible benefits can lead to a substantial difference in returns.

Understanding the tax benefits associated with CRE is a tall order, but if you’re considering an investment, here are eight top commercial real estate … Read More

How Much Are Commercial Property Closing Costs?

Closing Costs for Commercial Real Estate

The closing costs on a commercial investment property are can become substantial, often reaching tens of thousands. If you’re purchasing an investment property, here’s a breakdown of the various commercial property closing costs you can expect.

Flat-Fee Commercial Property Closing Costs

The simplest commercial real estate closing costs are flat-fee expenses that remain relatively standard across all investment properties. These include title insurance, appraisals, environmental … Read More

How To Build a Personal Financial Statement For Commercial Loans

Personal Financial Statement Free Template

A personal financial statement is often among the required documentation when applying for a business loan. Even though business loans are distinct from personal loans, lenders might want to see the borrower’s personal financial situation for a variety of reasons.

If you’re applying for a business loan soon, here’s an explanation of what this document is and how to go about making a personal financial … Read More

Cost Segregation: Pay Less Taxes on CRE Investments

A Guide to Cost Segregation In Commercial Real Estate Investing

One of the biggest areas of focus for people investing in commercial real estate is how to handle the tax implications. If investors aren’t well-versed in how to legally reduce their tax burden, they could end up paying much more than they have to. That would make their great investment a reasonable one, at best. At worst, it could mean their investment would … Read More

The Difference in SBA 504 Commercial Real Estate Loan and SBA 7(A) Loans

Understanding SBA 504 and SBA 7(A) Loan in Commercial Real Estate lending

If you need a loan to invest in growing your small business, it is good to have options—and you do. For example, the U.S. Small Business Administration (SBA) offers its SBA 504 loan and its SBA 7(a) loan. Both have advantages.

But to benefit, you must choose the right loan for your project, your financial circumstances, and your timeframe. Let’s look first at the broadest differences … Read More