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...

A commercial cash-out refinance allows property investors to access the equity tied up in their real estate, which would otherwise remain illiquid. While selling the property is one way to unlock equity, refinancing offers an alternative with several potential...

When evaluating investment properties, understanding vacancy rates is essential. This metric reveals how frequently units remain unoccupied and for how long. It also offers insight into the property's management efficiency and overall desirability. For those...

Multifamily investors and developers utilizing Low-Income Housing Tax Credits (LIHTCs) must adhere to specific regulations regarding how they use the land or develop their projects. One key requirement of LIHTCs is compliance with rent limits for a designated period,...

Earnest money is not always required in commercial real estate transactions, but it is a common element in most agreements. This guide explores what earnest money is, how it functions, and whether it can be refunded.   What is Earnest Money? Earnest money is a deposit...

An assumable loan is a financing option that allows a buyer to take over the existing loan of a property from the current owner. This type of loan structure enables the new owner to step into the existing debt arrangement rather than securing a new loan upon...

For commercial real estate investors, particularly developers, understanding the floor area ratio (FAR) is crucial. This metric plays a key role in maximizing property usage while adhering to zoning regulations. Below is an overview of what FAR is, how it is...