Blogs

Currently, the index value of the commercial property price in the U.S. is 185.62, as reported by Statista. Over recent years, this cost has gradually risen due to factors like the state of the economy, increased demand for housing, and rising interest rates. On the other hand, construction costs for a particular property depend on several factors, including location, size,

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Fannie Mae and Freddie Mac, which are government-backed agencies, play an integral role in the American housing system. They buy mortgage loans from lenders, such as banks, package those loans into mortgage-backed securities, and then sell them to investors. Because Fannie Mae and Freddie Mac take on much of the risk, investors generally consider those securities to be safe. These

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Every year, at least 29% of startups fail due to cash flow problems, as reported by Statista. Those who opt for commercial loans to boost their financial strength survive longer than the rest. To determine commercial loan eligibility of a business, more than 80% of banks consider factors such as business liquidity, business age, owner experience, owner net worth, and

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For many business owners, knowing the process of preparing a commercial loan package can be one of the most resourceful tools. Although this process may seem overwhelming and even frustrating, it is very important to get right when considering your financial future. When preparing your commercial loan application, here is what you need to know about preparing a financial package.

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Commercial and residential real estate differ mainly by unit count and use. Residential real estate covers single-family homes and rental buildings with one to four units. Commercial real estate covers properties with five or more units plus buildings used for business, such as offices, retail, and hotels. That single distinction changes how a property is financed, valued, taxed, and managed.

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Millennials, those born between 1982 and 2004, entered the job market during one of the most difficult times that the nation experienced – the Great Recession. Loaded with student debt, no savings, big dreams, and skills learned while taking unpaid internships, millennials were trying to navigate the jobs market when large businesses were letting seasoned staff go. However, with their

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To sell a seller carry-back mortgage, the note holder transfers the right to collect future installment payments to a note investor in exchange for an upfront lump sum. The process has 5 stages: gather documentation, get the note valued, request quotes from multiple buyers, choose a full or partial sale, and close the assignment. A seller carry-back note typically sells

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A commercial property mortgage rate is built from two parts: a benchmark index plus a credit spread the lender sets for the risk of your deal. The index comes from public market rates the lender does not control. The spread, which across the commercial market typically runs 1.5% to 4%, is where pricing is won. Five factors move that spread,

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There’s no doubt that coronavirus has disrupted much of our daily lives. Just about every industry has been hit by the pandemic, and there’s no sure way of knowing the outcome. So far, residential prices have remained pretty steady, but many expert investors predict that will change. Similarly, the commercial real estate market has been significantly impacted by COVID-19-induced temporary

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