Entries Categorized as 'Commercial Lending'

What is a Cap Rate, and How do You Calculate it?

Date June 6, 2008

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 […]

Commercial Lending - Evaluating Income on a Commercial Property

Date February 26, 2008

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 […]

Packaging Your Loan - Commercial Loans

Date February 1, 2008

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 […]