Purchasing or developing commercial real estate often requires significant capital, and traditional financing options may not cover the full cost. In such cases, investors might consider mezzanine financing as an alternative to equity dilution. So, what exactly is a...

Understanding FHA Loans An FHA loan is a government-backed mortgage product insured by the Federal Housing Administration. While private lenders issue these loans, they are protected by federal insurance, which helps lower the lending risk. FHA loans are attractive to...

Determining the market value of commercial real estate is a critical process for various stakeholders—including buyers, sellers, lenders, and tax authorities. It ensures accurate pricing, lending decisions, and taxation. A commercial property appraisal is the widely...

In commercial real estate, there are various lease structures available to accommodate different tenant and landlord needs. Two of the most widely used lease types are gross leases and net leases, which differ primarily in how property expenses are allocated between...

Triple net properties—commonly abbreviated as NNN—represent a particular structure within commercial real estate where tenants take on not only the base rent but also additional financial responsibilities, making this investment model unique and appealing for certain...

In commercial real estate investing, using a variety of performance metrics is crucial for gaining insights and making informed comparisons between potential investments. Two commonly used metrics—cash on cash return (CoC) and internal rate of return (IRR)—help...

Not sure why it was overlooked, but I’ve also backed it up on Dropbox. When financing commercial real estate, lenders typically apply several fees—one of the most common being the loan origination fee.   What Is a Loan Origination Fee? This fee is charged to cover the...

What Is Equity Multiple? Equity multiple is a key metric used to measure the overall return on an investment. It's particularly popular in private equity and commercial real estate because it offers a straightforward way to gauge performance. Few metrics offer such a...

When analyzing the financial health of commercial real estate properties, it's common to look at performance over specific timeframes—both past and projected. One of the most widely used retrospective periods, especially for multifamily properties, is the Trailing...

Commercial mortgage agreements often contain specific provisions to protect lenders’ financial interests. One such provision is a prepayment penalty known as yield maintenance. This penalty is designed to ensure that the lender receives the expected return on...

An Overview of Tenancy in Common Tenancy in Common (TIC) is a form of property ownership where multiple parties hold individual interests in the same commercial real estate asset. While it’s a fairly common structure, it carries both advantages and potential...

Estimating a commercial property’s potential income involves more than simply multiplying the monthly rent by twelve. This basic calculation overlooks additional income streams and potential costs, making it an incomplete reflection of the property’s true revenue...