The capitalization rate, or cap rate, is used to compare an income property with other properties that are similar to the subject.  It can also be used to value a property based on the income it generates.
The cap rate explained simply is the projected return for one year if the property was purchased with no […]

Posted in Broker Resources, Commercial Lending, Terms & Definitions Comments Off

In commercial lending, it is important to understand and know how to evaluate the income of a commercial property.  Today I am going to go over some basics on evaluating income on a commercial property.
There are two basic foundations for evaluating a commercial properties income.  You have contract rent and market rent.  Contract rent is […]

Posted in Broker Resources, Commercial Lending, Terms & Definitions 1 Comment »

With the tightening money in the residential sector, a number of brokers are entering the commercial loan market for the first time.  While it is a great market to be in, there is a learning curve, and packaging requirements are different than for a residential transaction.  Below I will outline a general commercial loan package […]

Posted in Broker Resources, Commercial Lending Comments Off

If you’re a broker in today’s market, you know that money has tightened up dramatically.  Hard money has become the new subprime, and many brokers are finding themselves placing hard money loans for the first time.  To make things more difficult, hard money lenders are inundated with loan requests.  If you don’t already have relationships […]

Posted in Broker Resources Comments Off