Category: CommLoan Academy
How to Find Out Who Owns a Commercial Property
The best commercial real estate opportunities often aren’t listed. They require research to find, and a key component of the research is finding out who owns the property. Rarely is this easy to do, but several strategies can be used to figure out who you should contact about potentially purchasing a commercial property.
Understanding Commercial Property Ownership
Finding who owns a commercial property is more … Read More
Credit Tenant Lease (CTL) Financing in Commercial Real Estate
Every landlord who’s held commercial real estate knows the value of a good tenant and understands that good tenants deserve incentives. One way that landlords can incentivize well-qualified tenants is with a credit tenant lease.
What is a Credit Tenant?
A credit tenant is a tenant that has a high credit rating, as determined by one of the major rating agencies (e.g. Moody’s or Standard … Read More
MSA: Metropolitan Statistical Area in Commercial Real Estate
A Metropolitan Statistical Area, also known as an MSA, is an important factor for those considering investment in commercial property. Understanding what they are and what factors contribute to their creation can influence lending decisions and opportunities.
What Is a Metropolitan Statistical Area (MSA)?
A metropolitan statistical area is a government-designated area for a specific urban region. The U.S. Office of Management and Budget (OMB) … Read More
How to Calculate MIRR: MIRR Formula and Examples
Commercial real estate investors need as much information as possible when deciding what to invest in and how to do so. Numerous types of financial data are available to allow for that, including modified internal rate of return (MIRR). This specific metric enables investors to determine if a property is a good investment or one that carries too much risk. Therefore, understanding this metric is … Read More
How to Become a Commercial Mortgage Broker
Commercial mortgage brokers hold a central role in commercial real estate, as almost every deal goes through them during the financing process. Brokers must understand investors’ and property owners’ needs, the lenders and financing programs available, and how to match the right borrower with the right lender.
If you have financial acumen and are interested in commercial real estate, this can be a promising way … Read More
What is a Sale Leaseback in Commercial Real Estate?
Owning commercial real estate can be a solid investment strategy, but it’s not right for every business or situation. Sometimes businesses find themselves owning a building, but wanting to focus on their core competencies. A sale leaseback may be advantageous in these situations, allowing businesses to focus on what they do while also freeing up capital. What is a Sale Leaseback?
A real estate sale … Read More
Capital Stack in Commercial Real Estate Investment
Investing frequently requires substantial capital, and it’s not uncommon to secure funds from multiple sources. Capital stack refers to the various layers of funding used to purchase, develop, and operate a commercial property. If you’re doing any of these things with commercial real estate, and especially if you’re purchasing, you must understand the property’s capital stack.
What is Capital Stack in Real Estate?
Capital stack … Read More
What is Earnout on Commercial Loans?
Various situations in commercial real estate may call for earnouts, an opportunity to pull additional money from a real estate asset when specific steps or strategies are completed. There are various situations where property owners may need to refinance their existing loan, but their business plan has not yet reached its expected goals. That is, they may put additional value into the property through … Read More
A Guide to Wholesaling Commercial Real Estate
Wholesaling commercial real estate lets knowledgeable investors leverage their expertise more than their capital. This is a proven and long-established commercial real estate investment strategy, one that can be especially useful for investors who don’t want to risk large amounts of capital.
What is Wholesaling in Commercial Real Estate?
A commercial real estate investor who wholesales essentially acts as a middleman (or person). They find … Read More
A Guide to Commercial Real Estate Asset Management
Commercial real estate asset management is the method used to determine how effective a project or property is in achieving the goals the investor sets. In short, it is one of the most important ways to gather information to make a decision about assets before purchase or, in some cases, in the decision to liquidate.
What is Asset Management in Commercial Real Estate?
Asset management … Read More