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Casual Articles - Commercial Real Estate Loan Myth Debunked!
Perhaps you are already aware of the fact that the data on your computer can be stored in many different ways, such as CD’s, removable disks or DVDs and so on. I may also agree with the fact that all machines reach a point where they crash, with or without any obvious reasons. Floods, fires or human mistakes can be among them, if you were looking for actual examples!Loss of data is one of the major negat
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wi
A friend in Atlanta sent me a private email directing me to a website he thought I ought to check out. He knew I was disillusioned with affiliate marketing and had all but chucked in the towel.And with good reason; I had never earned a dime for all my efforts spanning almost three years. But I’d spent money; money I’d accumulated from marketing my own produce, loads of money on this and that piece of soft
There is a metaphorical place in any business when the seeker of inside secrets reaches that signpost that says something like: “Beewair … Theyre bee Dragyns ahed.” Again, keep in mind I am being highly metaphorical, but I’ve been asked a number of times about a certain type of commercial real estate financing that makes me begin to suspect that someone is out there selling investment property “treasure maps” for $5.00 each! And you know just how much treasure you will find following such a map. So as a professional commercial real estate loan broker, I am here to set the record straight:
NO LENDER offers a 100% Loan to Value commercial real estate loan.
And I define “lender” to mean a source of capital that provides debt financing, secured by real property.
So for all of you seeking that 20% Seller Carry and the 80% purchase money loan on a property you think is worth three times the purchase price … please, join us back here in reality. If pigs had wings, they would fly. So, if a lender was willing to allow you to purchase a property on those terms, why would they need you? They would make a whole lot more money doing the transaction themselves!
Here is the reality concerning commercial real estate from a lender’s perspective: Commercial real estate is considered an investment, not a basic need, such as a roof over your head. Because investment real estate is “secondary” to a borrower’s personal residence, it is usually considered a higher risk loan.
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wi
Elliot wave theory has a huge and devoted following and is being described as advanced technical analysis and the key to un locking market behavior and predicting the future.Let’s look at it in more detail and why Elliot Himself could not make money from the theory.The theory was named after Elliott himself, who concluded in his book “nature’s law” something all traders would love to know.H
NO LENDER offers a 100% Loan to Value commercial real estate loan.
And I define “lender” to mean a source of capital that provides debt financing, secured by real property.
So for all of you seeking that 20% Seller Carry and the 80% purchase money loan on a property you think is worth three times the purchase price … please, join us back here in reality. If pigs had wings, they would fly. So, if a lender was willing to allow you to purchase a property on those terms, why would they need you? They would make a whole lot more money doing the transaction themselves!
Here is the reality concerning commercial real estate from a lender’s perspective: Commercial real estate is considered an investment, not a basic need, such as a roof over your head. Because investment real estate is “secondary” to a borrower’s personal residence, it is usually considered a higher risk loan.
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wi
If you have political ambitions or would like to work in Washington, DC and travel around the world and if you speak a foreign language then you might consider a career with the State Department. They are always hiring new people to travel around the world and represent the United States of America in foreign lands. Now more than ever it is important for our nation to be on good terms with other countries arou
And I define “lender” to mean a source of capital that provides debt financing, secured by real property.
So for all of you seeking that 20% Seller Carry and the 80% purchase money loan on a property you think is worth three times the purchase price … please, join us back here in reality. If pigs had wings, they would fly. So, if a lender was willing to allow you to purchase a property on those terms, why would they need you? They would make a whole lot more money doing the transaction themselves!
Here is the reality concerning commercial real estate from a lender’s perspective: Commercial real estate is considered an investment, not a basic need, such as a roof over your head. Because investment real estate is “secondary” to a borrower’s personal residence, it is usually considered a higher risk loan.
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wi
Do you think that there is really any factor which affects the value of hosted documents? Then let me tell you that YES! There are factors that affect the rankings of hosted documents.Before we start talking about those factors you should know that these factors in fact influence any web document on the search engines and that’s why they are an integral part of all SEO services.If you own any websi
Here is the reality concerning commercial real estate from a lender’s perspective: Commercial real estate is considered an investment, not a basic need, such as a roof over your head. Because investment real estate is “secondary” to a borrower’s personal residence, it is usually considered a higher risk loan.
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wi
A business plan presents an interpretation of differing perspectives. Three are critical to creating a business vision. These views form around typical worldviews. They are the future, past and present.The future is the most challenging view of the three. A business plan provides a blue print of our vision of the future. We look into our crystal ball and make many choices about what the world will be
Why?
If the fit hits the shan in a borrower’s personal life and money becomes tight, lender’s conventional wisdom says that the borrower will shift his resources to protect his personal residence ahead of his commercial investments. This may not seem immediately apparent when you look at the spread between home loan rates and Wall Street conduit rates (these commercial rates are actually lower than most residential ones). However, you need to check the terms to see the difference.
You can still by a primary residence with no money down and good credit. You can not purchase a commercial property without some form of equity investment. In most cases, the commercial lender wants to see a minimum of 15% equity in the deal, although you can find some that will allow 10% provided the property meets minimum debt service requirements. But good luck finding that situation in most good markets. Oh, and very few commercial loans go full term like residential loans (yes, I know that there are exceptions). Most are balloons at 10 years.
Yes, you can engage a mezzanine lender to fund almost all of the equity difference, but you are really going to pay for it either in points and rate or in some form of equity kicker … which takes us away from my definition of lender. And mezzanine lenders don’t make loans on the property itself … which is a whole other story.
Thus, it bears repeating: There are no 100% LT
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