Small commercial loans these days can be frustrating for many borrowers to find and obtain.  With the recent downturn in the commercial real estate market, small commercial loans are taking a hit.
Many banks and institutions have tightened up their standards.  The debt coverage ratio required has gone up, and values have dropped as vacancies have […]

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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 […]

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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 […]

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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 […]

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