|
Commercial Mortgages |
|
Knowledge Center Articles |
|
|
|
|
 |
Commercial Mortgage Articles
|
|
|
RUBS is a customized
system for allocating utility costs to residents
for most utilities, including: water, sewer,
electric, trash and gas. |
|
|
|
When underwriting a
commercial real estate loan, one of the most
important factors used to determine the
approvability of a commercial mortgage request
is the DSCR, commonly referred to as the debt
service. |
|
|
|
A Land Use Restrictive
Agreement (LURA) subjects the multifamily real
estate to a land use restriction agreement
(LURA), in which the owner gives up some of
their rights of the land use in exchange for the
promise of future tax credits. |
|
|
|
The debt service
coverage ratio is one of the least understood
underwriting requirements for new and even
seasoned commercial real estate investors.
Briefly, the debt service coverage ration simply
compares the subject property’s net operating
income to the proposed mortgage debt service (on
an annual basis). |
|
|
|
Commercial appraisals
are expensive, often exceeding $2,500. Luckily,
there are a few basic ratios that can be used to
help you get a good idea of the value of an
income producing commercial property. |
|
|
|
Non-recourse loans
have exceptions
within the loan
documents that
essentially transfer
personal liability
to the Sponsor for
certain “bad boy”
behaviors. Or more
specifically, there
are personal
guarantees required
with non-recourse
loans. |
|
|
|
Conduit loans have been
around since the late 1990s and are somewhat
unfamiliar to most commercial real estate
investors. |
|
|
|
Q1 2016 cap rates for
apartments hit historically low levels during
the first quarter of 2016. The mean cap rate
dropped 40 basis points to 5.6% in Q1. Not only
is this a record low, it’s the first time cap
rates for multifamily have dipped below 6%. |
|
|
|
Delinquency rates for
commercial and multifamily mortgage loans
continued to decline in the second quarter of
2014, according to the Mortgage Bankers
Association?s (MBA) Commercial/Multifamily
Delinquency Report. |
|
|
|
Treasury (U.S. bonds)
prices fell sharply in May sending yields
skyrocketing marking the worst month since
December 2010, as stronger than expected
economic data caused worry the Federal Reserve
might slow its bond purchases earlier than
expected. Commercial and multifamily rates
increase sharply as a result. |
|
|
|
It wasn’t long ago that
the loan process for the popular HUD Section 232
Lean healthcare (assisted living, skilled
nursing, hospital) program was suffering from
what can only be referred to as a true
‘bottleneck.’ |
|
|
|
Is your multifamily
property worth what you think? CAP rates
increase an average of 150 bps in major markets. |
|
|
|
Commercial real estate
loan debt coming due in the next three to five
years could could mean that as much as $200
billion in losses. |
|
|
|
A comprehensive summary
of the past weeks news from the commercial real
estate and commercial mortgage markets. |
|
|
|
The apartment and
multifamily real estate sectors see vacancies
increase, rents drop while CMBS delinquencies
sky rocket. |
|
|
|
Refinancing Your
commercial real estate loan could be difficult
due to steep drops in value, greater than 20%
since 4th Quarter 2007. |
|
|
|
CMBS Outlook Finds
Conditions Are Bad and Getting Worse for Office,
Retail and Hotel Sectors |
|
|
|
Analysts say Treasurys
may have a fast and furious decline this year
when investors decide the time has come to test
the stock market waters again. |
|
|
|
Delinquency rates
continued to tick up in the third quarter for
most commercial/multifamily mortgage investor
groups according the third quarter
Commercial/Multifamily Delinquency Report from
the Mortgage Bankers Association. |
|
|
|
Multifamily mortgage
finance has been shielded from the worst of the
banking and mortgage meltdown. What’s behind
this phenomenon? Simply put, Fannie Mae and
Freddie Mac. |
|
|
|
Would you like to close
your commercial real estate loan in a smooth and
timely manner – with fewer headaches?
Capital Assets’s underwriters tell you how! |
|
|
|
So you want to close
your commercial loan or apartment loan fast, in
under 30 days. Is it possible? It might be, but
its really up to you, not necessarily the
commercial lender. |
|
|
|
Are you applying for a
commercial real estate loan with Capital Assets,
or any other commercial lender? Would you like
to have your loan flow smoothly and close in a
timely manner? We help prepare you through a
little preparation. |
|
|
|
Learn the basics of
underwriting commercial loans. Commercial
mortgage lenders look at LTV, DSC, property
quality and other information when underwriting
a commercial real estate loan request. |
|
|
|
In this first
installment of an article about the factors that
effect the interest rate of an apartment loan or
multifamily loan, we provides an overview of the
different variables that impact the interest
rate either positively or negatively. |
|
|
|
When applying for a
commercial real estate loan in is helpful to
have an idea what the value of your commercial
income producing property is. The following is
the method of calculating a CAP rate… |
|
|
|
When underwriting a
commercial real estate loan, apartment loan, or
conduit loan, there are 3 main ratios commercial
lenders use to analyze the approvability of a
commercial loan request. The three ratios are: |
|
|
|
Most individuals have a
general understanding of what it takes to
qualify for a home loan, but few know what the
basic requirements commercial lender’s require
for commercial real estate loan |
|
|
|
A commercial mortgage
document spells out how you must maintain the underlying collateral
for a commercial real estate loan and
the remedies available to the commercial lender should you default
on the promissory note or fail to maintain the collateral in a satisfactory manner.
|
|
|
 |
This article
is protected under the copyright laws of the United
States (title
17 U.S. Code).
Any unauthorized use is strictly prohibited. If you
would like to reprint this article for use on a
commercial website, please
contact Capital Assets for more information.
Capital Assets
is a
commercial real estate finance company and financial
intermediary
providing
borrowers
with a
simplified
way to
obtain
commercial
financing
and
apartment
financing
through
standardization
and a
product
driven
online
platform.
|
|
|
|
