How COVID-19 Affected Commercial Real Estate Values and Loan Defaults
Although it might look like the worst of the pandemic is over, commercial real estate continues to feel lingering effects. Prior to the pandemic, commercial real estate investment was a reliable venture, with businesses always in need of a physical space to operate. Unfortunately, the pandemic changed everything. The swift pivot to remote work, mandated […]
Understanding Capital Stack in Commercial Real Estate
It’s crucial that investors looking to evaluate the risks of direct real estate investments are familiar with more than just the capital stack definition. In commercial real estate, the capital stack refers to the various layers of financing. These layers contribute to funding the acquisition and improvement of a property. Each layer represents a different […]
A Guide On Avoiding Construction Delays With Hard Money Loans
Do you have an ongoing construction project but need hard money loans to complete it? The construction niche often requires a significant amount of capital irrespective of the type of project. It is common for realtors to fall short of the required startup or continuation cost, and need loans to continue the project. These construction […]
Is It Difficult to Secure a Commercial Real Estate Loan?
Conventional lenders have rigorous lending processes, making securing a commercial real estate loan hard and time-consuming. They will typically request every financial detail and assess your creditworthiness and income or business financial stability. If you do meet all the conventional lender’s requirements, the process will be fairly easy for you, but how easy is it […]
Are Appraisals Important for Hard Money Lenders in Commercial Real Estate?
Appraisals are like the backbone of the lending process, which is why conventional banks and traditional commercial real estate lenders require it. They involve a thorough evaluation process that provides the lender with valuable information regarding a property, including its market value and condition. Appraisals help hard money lenders in determining the loan-to-value ratio, which […]
Commercial Real Estate Funding for Controversial Enterprise and Religious Institutions
A unique challenge often arises when financing properties for controversial enterprises and religious institutions. A 2023 Pew Research Center survey found that 72% of Americans believe the country is becoming more divided along religious and social lines, which can influence how lenders perceive the risk associated with financing these properties (1). What’s more, this perception […]
Is a Commercial Real Estate Investment a Good Idea?
With the commercial real estate (CRE) market in the United States projected to balloon to a staggering $25.37 trillion by 2024, it’s no wonder this asset class continues to entice investors. The promise of steady income streams, fueled by a national economy that added a remarkable 2.8 million jobs in the CRE sector alone in […]
The Commercial Loan Refinance Wave and Its Economic Impact
As the U.S. government strives to contain the turmoil in the financial market, the $1.5 trillion mortgage due in a couple of years poses a significant challenge for the real estate industry. There could be substantial downturns as real estate lenders anticipate a potential need for commercial loan refinance options. Unfortunately, this could mean higher interest […]
Your Detailed Guide to Commercial Real Estate Loans for Businesses
Most businesses struggle to get commercial real estate loans because they don’t understand the purchasing or refinancing processes. Some don’t get funding because they can’t meet the regulatory requirements. Due to the different uncertainties business owners have about commercial real estate business loans, we’ve decided to create a detailed guide. Overview of Commercial Real Estate […]