What Does Triple Net (NNN) Property Mean? What to Look For?
Triple net properties, sometimes called NNN, are a form of commercial real estate. Those considering the investment in these properties should understand what this term means and how it applies to their situation.
What Does Triple Net Mean in Commercial Real Estate?
A triple net lease is a type of commercial lease that includes a provision that the lease remains responsible for covering some of … Read More
Gross Lease vs Net Lease: What’s the Difference?
A variety of commercial leases are available. This helps ensure there is something available to fit any need and most challenges.
There are two main types of commercial leases. The first is a gross lease, and the second is a net lease. It is also sometimes called gross rent vs net rent. The type determines who pays for various expenses associated with the use of … 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 Cost (LTC) Ratio – Understanding LTC vs LTV
Understanding loan to cost meaning is quite important to investors. This ratio is a valuable metric used in commercial real estate construction (and other areas) to determine whether a transaction may be profitable or beneficial to that investor. It compares the cost of financing a project (usually as a loan) to the cost of building the project. By utilizing this metric, lenders can better determine … 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
Guide to Business Credit Scores
Business credit scores can have a dramatic impact on the availability and cost of financing, and any impact is only magnified for commercial property financing where investors need to borrow large sums. For investors, developers and managers, understanding the role of a company’s financial score is essential.
What Is A Business Credit Score?
The purpose of a business financial score is to help various parties assess … Read More
Net Operating Income (NOI) Calculator: Determine Your NOI
Real estate investors need information. The more information they have, the better the decisions they can make. There are a lot of tools to provide this information, but one of the most important is net operating income (NOI). Understanding what this calculation is and how to use it can help investors make decisions quickly regarding any property an investor is considering.
What Is Net Operating … Read More