Mezzanine

Understanding CRE Loan Terminology

Understanding CRE Loan Terminology

If you have ever taken out a car loan or residential mortgage loan, chances are you are familiar with some of the basic loan terminology that is used. When it comes to commercial real estate (CRE) loans, the vocabulary opens up and even more terms are used that you may not be familiar with.

Considering an Industrial Property Loan?

Considering an Industrial Property Loan?

Industrial properties have seen some success in recent years. With property values increasing along with rents, an industrial property might make for a good investment right now. If you are considering your first industrial property investment, here are just a few things to consider.

What is a Personal Guarantee? (For Small Business Owners)

What is a Personal Guarantee? (For Small Business Owners)

A personal guarantee means you personally promise to pay back a business loan in the event your business is unable to cover repayment of the loan. If your business defaults, the lender can come after your personal assets and real estate.

Do You Have An Exit Strategy?

Do You Have An Exit Strategy?

Thinking of buying a commercial real estate property? Do you have an exit strategy already in mind? Planning an exit strategy is one of the most important things you can do before you buy a property. Here are some common exit strategies that investors use:

What Are Commercial Real Estate Loan Prepayment Penalties?

What Are Commercial Real Estate Loan Prepayment Penalties?

It is common to see prepayment penalties on commercial real estate loans, but what are they and what do they mean? Commercial real estate loans are expensive to originate, so lenders try to recoup these costs by charging upfront origination fees and interest revenue over the life of the loan.

What Commercial Real Estate Investments Are Recession Resistant?

What Commercial Real Estate Investments Are Recession Resistant?

Can your investments handle a recession? Certain types of real estate can be a hedge for a recession. Today we will discuss 3 examples of CRE that are historically recession resistant.

Hotel & Hospitality Financing

Hotel & Hospitality Financing

Hotel and hospitality financing can be quite daunting and complex for new and experienced investors and managers. Whether you are acquiring an existing asset, constructing from the ground up, rehabbing or repurposing a project, the capital structure can vary greatly.

What is Commercial Mezzanine Financing?

What is Commercial Mezzanine Financing?

There is an order or hierarchy to this type of financing. If you picture a pyramid or triangle, the bottom section represents the senior debt which provides the majority of the financing, the middle section is the mezzanine financing which is the financing that fills the gap between senior debt and equity, and the top of the pyramid is equity financing (the sponsor’s contribution).