Research

Whether buying and operating or building from the ground up, hotel financing revolved around the process of securing commercial real estate and developing a solid business model. This is often dependent on access to funding.

What is Hotel Financing?

Hotel financing refers to any type of lending related to the purchase, development, upgrading, or renovations of a hotel. These loans can help investors to meet … Read More

Any successful real estate investment requires understanding the profitability of said investment. While profitability can be ascertained several ways in real estate, yield is one of the most important ones if holding rental properties. A percentage-based figure, yield is one way to calculate a property’s returns against its value.

What is Rental Yield?

Rental yield shows the annual return a property generates through rent, as … Read More

Businesses in the hospitality industry derive the bulk of their revenue from room sales. One of the key metrics used to understand room revenues is the average daily rate (ADR). If you’re investing in a hotel, motel, bed and breakfast or other lodging, it’s vitally important that you understand how to calculate ADR.

What is the Average Daily Rate or ADR?

The average daily rate … Read More

There are some situations where purchasing the property that your business occupies can be lucrative in the long term. Other times, changing market conditions, a lack of due diligence, or unknown factors can make the investment a bad one. For a business owner, the inability to pay back their loan is a concern, and SBA loan default is not ideal. There are some ways to … Read More

The investment in self-storage could be beneficial to some investors. With a wide range of potential storage facility opportunities in many areas, it is valuable to explore this investment avenue to determine how profitable it could be.

What is Self Storage?

Self-storage is an opportunity to piece out and rent space to those who need to store items offsite. These are typically buildings that have … Read More

The commercial mortgage backed securities (CMBS) rate has been fluctuating in recent years, and sometimes has spiked as the commercial real estate landscape adjusts to new work  habits. Because CMBS are borrowed by real estate investors and purchased by securities investors, delinquency rates can affect both parties. Here’s a guide to CMBS delinquency.

Understanding Delinquency Rates

At its core, a delinquency rate quantifies the proportion … Read More

Every real estate investor needs to find at least one way, and preferably several, to gain an advantage in the market. One of the largest potential advantages is an opportunity zone (OZ). If you’re unfamiliar with this particular benefit, here’s why you might want your next property to be in this particular type of zone.

What is an Opportunity Zone?

Created by the Tax Cuts … Read More

For real estate investors, understanding all of the numbers in any transaction is critical to determining if a transaction is worthwhile. Often, the focus is on determining if the return on investment is worthwhile, and that is often the case when costs are in line with earning potential. One specific area of focus is the cost of debt service. Mortgage constant is one of the … Read More

Securing financing is a process for any business that needs to borrow funds, but it’s especially challenging when going through bankruptcy. For businesses and firms that are facing bankruptcy, there’s debtor-in-possession financing (DIP financing).

What is DIP Financing?

DIP financing is a specific type of financing that may be available to businesses going through Chapter 11 bankruptcy proceedings. The term “debtor in possession” refers to … Read More

For investors considering the purchase of real estate, the goal is to keep costs as low as possible. A component of that is obtaining a low-interest rate, but it may also be important to minimize cash flow loss. An interest-only loan may offer some assistance in that area.

What is an Interest-Only Loan?

In its simplest terms, An interest-only commercial mortgage is a loan in … Read More