FAQ
There are many types of mortgages, and the more you know
about them before you start, the better. Most people use a fixed-rate mortgage.
In a
fixed-rate mortgage, your interest rate stays the same for the term of the
mortgage,
which normally is 30 years.
The advantage of a fixed-rate mortgage is
that you
always know exactly how much your mortgage payment will be, and you can plan for
it.
Another kind of mortgage is an adjustable rate mortgage (ARM). With this kind of
mortgage, your interest rate and monthly payments usually start lower than a
fixed-rate mortgage.
Your rate and payment can change either up or down,
as often as
twice per year. The adjustment is tied to a financial index, such as the U.S.
Treasury Securities index. The advantage of an ARM is that you might be able to
afford a more expensive home because your initial interest rate will be
lower.
There
are several government mortgage programs that might interest you, too. Most
people
have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it
insures
loans so that if buyers default for some reason, the lenders will get their
money.
This encourages lenders to give mortgages to people who might not otherwise
qualify
for a loan. Talk to your real estate broker about the various kinds of loans,
before
you begin shopping for a mortgage.
* Consult your tax advisor.
An investment property loan is a type of mortgage or financing specifically designed for
purchasing or refinancing a property that will be used for investment purposes rather
than as a primary residence. It is used by individuals or entities looking to generate
rental income or profit from property appreciation.
The main difference is the intended use of the property. A traditional mortgage is used
for purchasing a primary residence, while an investment property loan is used for
properties that will be rented out or used for investment purposes. Lenders typically
have different eligibility criteria, interest rates, and down payment requirements for
investment property loans.
The eligibility requirements can vary depending on the lender and the type of loan.
Generally, lenders consider factors such as credit score, income, debt-to-income ratio,
and the property's potential rental income. They may also require a larger down
payment compared to a traditional mortgage.
Investment property loans can be used to finance various types of properties, including
single-family homes, multi-unit residential properties (duplex, triplex, or apartment
buildings), condominiums, townhouses, and commercial properties.
Down payment requirements for investment property loans are typically higher than for
traditional mortgages. They can range from 15% to 25% or more of the property's
purchase price. The specific percentage will depend on factors such as the borrower's
creditworthiness, the type of property, and the lender's policies.
Interest rates for investment property loans are generally higher than for traditional
mortgages due to the increased risk associated with investment properties. The exact
interest rate you qualify for will depend on factors such as your credit score, loan term,
down payment, and the current market conditions.
Yes, rental income can be used to qualify for an investment property loan. Lenders
typically consider a portion of the rental income to help offset the mortgage payment
and calculate the borrower's debt-to-income ratio. However, not all of the rental income
may be considered, and lenders may require a history of rental income or a signed
lease agreement.
Yes, there can be tax implications when it comes to investment property loans. The
interest paid on the loan may be tax-deductible, and you may be eligible for deductions
on expenses related to the property, such as property taxes, insurance, and
maintenance costs. It's advisable to consult with a tax professional to understand the
specific tax implications for your situation.
Yes, it is possible to refinance an investment property loan. Refinancing may be
beneficial if you want to lower your interest rate, change the loan term, access equity for
other investments, or consolidate debt. The availability of refinancing options and the
terms will depend on your financial situation, the property's value, and the lender's
policies.
Yes, investment property loans can be used to purchase properties outside your local
area. However, lenders may have specific guidelines or restrictions when it comes to
financing properties in different regions or states. It's important to discuss your plans
with potential lenders and ensure they are willing to finance properties in the desired
location.
Bridge Loan FAQ
A bridge loan is a short-term financing option used to bridge the gap between the
purchase of a new property and the sale of an existing property. It provides funds to
cover the down payment on the new property until the existing property is sold.
When you apply for a bridge loan, the lender evaluates the value of your current
property and the potential proceeds from its sale. They then provide a loan based on a percentage of that estimated value. You use these funds to make a down payment on
the new property. Once your existing property is sold, you use the proceeds to pay off
the bridge loan.
Bridge loans are usually short-term loans with terms ranging from a few months to a
year. The interest rates are generally higher than traditional mortgage rates, and there
may be origination fees involved. The loan amount is typically based on a percentage of
the equity in your current property.
It can be more challenging to obtain a bridge loan with poor credit, as lenders typically
consider creditworthiness when evaluating loan applications. However, some lenders
may be willing to work with borrowers with less-than-perfect credit, although the terms
and interest rates may be less favorable.
In many cases, bridge loans are structured with interest-only payments during the loan
term. This means you only have to pay the interest charges each month and repay the
principal in a lump sum when the loan matures or when your existing property is sold.
Bridge loans are commonly used for residential properties, but they can also be used for
commercial properties or real estate investments. The eligibility criteria may vary
depending on the lender and the specific property type.
Yes, bridge loans can be used for property renovations or rehabilitation projects. These
loans, often referred to as rehab loans, provide funds to purchase a property and
finance its renovation. The loan amount is based on the anticipated after-repair value of
the property..
The time it takes to secure a bridge loan can vary depending on the lender and the
complexity of the transaction. The application and approval process typically take a few
weeks, but it can be expedited in certain cases. It's advisable to start the process early
to allow for any unexpected delays.
If you're unable to sell your existing property within the agreed-upon bridge loan term,
you may need to explore alternative options. This could involve refinancing the bridge
loan, negotiating an extension with the lender, or finding other sources of financing to
repay the loan.
Yes, there are alternatives to bridge loans, such as home equity loans, personal loans,
or lines of credit. Each option has its own advantages and disadvantages, so it's
important to evaluate them based on your specific financial situation and needs.
Consulting with a financial advisor or mortgage professional can help you determine the
best option for you.
Commercial Loan FAQ
A commercial loan is a type of financing specifically designed for businesses or
commercial purposes. It provides funds for various business needs, such as purchasing
real estate, expanding operations, buying equipment, refinancing debt, or funding
working capital.
Commercial loans can be used to finance a wide range of properties, including office
buildings, retail spaces, warehouses, industrial properties, hotels, multifamily residential
buildings, and mixed-use properties. The eligibility and terms may vary depending on
the type of property and its intended use.
Lenders evaluate commercial loan applications based on several factors, including the
borrower's creditworthiness, financial statements, business plan, industry and market
conditions, the property's cash flow potential, and the borrower's ability to repay the
loan. Collateral and personal guarantees may also be considered.
Interest rates for commercial loans can vary depending on factors such as the
borrower's creditworthiness, the loan term, the type of property, market conditions, and
the lender's policies. Commercial loan interest rates may be fixed or variable and are
often higher than residential mortgage rates due to the higher risk associated with
commercial properties.
The down payment requirement for a commercial loan can vary widely depending on
factors such as the type of property, the borrower's creditworthiness, and the lender's
policies. In general, commercial loans often require a larger down payment compared to
residential mortgages. It can range from 10% to 30% or more of the property's purchase
price.
Lenders typically consider factors such as the borrower's credit score, business
financials (such as revenue, profit/loss statements, and cash flow), industry experience,
collateral value, and the property's cash flow potential. Each lender may have its own
specific eligibility criteria, so it's advisable to inquire with different lenders to find the best
fit for your needs.
Yes, commercial loans can be used to start a new business or finance the expansion of
an existing one. However, lenders may have specific requirements and evaluate the
viability and potential profitability of the business before approving the loan.
Yes, commercial loans can be refinanced just like residential mortgages. Refinancing a
commercial loan can be beneficial if you want to secure a lower interest rate, change
the loan term, consolidate debt, or access equity in the property. The availability and
terms of refinancing will depend on various factors, including the property's value, the
borrower's financial situation, and market conditions.
The timeline for processing a commercial loan application can vary depending on
factors such as the complexity of the loan, the lender's internal processes, and the
availability of required documentation. It can range from a few weeks to several months.
Starting the application process early and being prepared with all necessary documents
can help expedite the process.
Common documents required for a commercial loan application include business
financial statements (profit/loss statements, balance sheets), personal and business tax
returns, bank statements, business licenses, a business plan, property appraisal
reports, and lease agreements (if applicable). The specific documentation requirements
may vary depending on the lender and the purpose of the loan.
DSCR Loan FAQ
A DSCR (Debt Service Coverage Ratio) loan is a type of loan commonly used in
commercial real estate financing. It focuses on the property's cash flow to determine the
borrower's ability to cover the loan's debt service obligations.
The DSCR is a financial ratio that compares a property's net operating income (NOI) to
its debt service (loan payment). The DSCR is calculated by dividing the property's NOI
by the annual debt service. Lenders typically have specific DSCR requirements, and a
higher DSCR indicates a stronger ability to cover the loan payments.
A good DSCR typically varies depending on the lender and the specific loan
requirements. Generally, a DSCR of 1.25 or higher is considered favorable, as it
indicates that the property's income is 25% greater than the debt service obligations.
However, different lenders may have different minimum DSCR requirements.
DSCR loans are primarily used for commercial properties, such as office buildings, retail
centers, hotels, or multifamily residential properties. They are less commonly used for
financing individual residential properties.
The DSCR is calculated by dividing the net operating income (NOI) of the property by its
annual debt service. The formula is DSCR = NOI / Debt Service. The NOI is typically
calculated by subtracting operating expenses from the property's gross income.
Lenders consider several factors when evaluating DSCR loans, including the property's
historical and projected income, operating expenses, vacancy rates, lease terms,
property location, market conditions, the borrower's creditworthiness, and the property's
value. These factors help determine the property's ability to generate sufficient cash
flow to cover the debt service.
While personal finances are generally not the primary focus in DSCR loans, lenders
may consider the borrower's personal financial strength and creditworthiness as part of
the overall evaluation. This can include factors such as personal credit scores, personal
income, and personal guarantees provided by the borrower.
Yes, DSCR loans can be refinanced. Refinancing a DSCR loan can be beneficial if the
borrower wants to secure better loan terms, lower interest rates, extend the loan term,
or access equity in the property. The availability and terms of refinancing will depend on
various factors, including the property's value, the borrower's financial situation, and
market conditions.
Yes, DSCR loans are commonly used for property acquisitions. The DSCR calculation
helps determine whether the property's income will be sufficient to cover the loan
payments, providing lenders with an understanding of the property's cash flow potential.
DSCR loans are typically used for property acquisitions rather than property
improvements or renovations. However, it's advisable to discuss specific financing
options with lenders, as some may offer specialized loan products that allow for
property improvement financing based on the property's DSCR and projected income.
New Construction Loan FAQ
A new construction loan is a type of financing specifically designed for individuals or
businesses looking to build a new residential or commercial property. It provides funds
to cover the costs associated with constructing the property, such as materials, labor,
permits, and other construction-related expenses.
New construction loans work differently from traditional mortgages. Rather than
providing a lump sum payment upfront, the loan is disbursed in installments or "draws"
throughout the construction process. Typically, the lender releases funds in stages
based on the completion of pre-determined milestones or phases of construction.
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and standalone construction loans. A construction-to-permanent loan combines the
construction financing and the permanent mortgage into a single loan. A standalone
construction loan is a short-term loan that is typically refinanced into a permanent
mortgage once construction is complete.
Eligibility requirements for new construction loans can vary among lenders. Common
criteria include a detailed construction plan, a qualified builder or contractor, sufficient
income or cash reserves to cover loan payments during construction, a good credit
score, and a low debt-to-income ratio.
Lenders typically determine the loan amount for a new construction loan based on the
appraised value of the property upon completion. The loan amount is usually a
percentage (e.g., 80%) of the appraised value minus the borrower's down payment or
equity contribution.
The interest rate for a new construction loan can vary depending on factors such as the
borrower's creditworthiness, the loan term, market conditions, and the lender's policies.
Typically, the interest rate for a construction loan is higher than that of a traditional
mortgage. Some lenders offer interest-only payments during the construction phase.
The funds in a new construction loan are disbursed in draws or installments based on
the completion of specific construction milestones. A qualified inspector or appraiser
usually verifies the completion of each stage before the lender releases the funds for
the next draw.
Some lenders may require borrowers to use a qualified and licensed contractor or
builder to ensure the construction is done professionally and meets building codes.
However, it's important to check with individual lenders as their requirements may vary.
The repayment timeline for a new construction loan varies depending on the loan type.
Standalone construction loans typically have shorter terms, usually around one year,
and must be refinanced into a permanent mortgage. Construction-to-permanent loans
automatically convert to a permanent mortgage once construction is complete, and the
repayment term will depend on the terms of the permanent loan.
Yes, there can be additional costs associated with new construction loans. These may
include fees for appraisals, inspections, architectural plans, permits, and any necessary
closing costs. It's important to review and understand the loan terms and associated
costs before proceeding with a new construction loan.
Commercial Mortgage Terms
| Term | Definition |
|---|---|
| Adjustable-Rate Mortgage (ARM) | A mortgage with an interest rate that changes periodically based on a predetermined index. |
| Amortization | The process of paying off a debt through regular payments over a specified period. |
| Appraisal | An estimate of a property's value, as determined by a qualified professional appraiser. |
| Bridge Loan | A short-term loan used to cover a gap in financing, typically until a more permanent financing solution is secured. |
| Closing Costs | Expenses, over and above the price of the property, incurred by buyers and sellers when transferring ownership of a property. |
| Debt Service Coverage Ratio (DSCR) | A financial metric used to measure a property's ability to cover its debt obligations, calculated by dividing net operating income by total debt service. |
| Due Diligence | An investigation or audit of a potential investment to confirm all material facts and assess the property's financial performance and risks. |
| Equity | The difference between the market value of a property and the outstanding mortgage balance, representing an owner's ownership stake in the property. |
| Fixed-Rate Mortgage | A mortgage with an interest rate that remains constant for the entire term of the loan. |
| Loan-to-Value Ratio (LTV) | A financial metric used by lenders to assess the risk of a loan, calculated by dividing the loan amount by the appraised value of the property. |
| Maturity | The date when a loan's principal balance becomes due and payable. |
| Mezzanine Loan | A type of subordinate financing that combines elements of debt and equity financing, typically secured by a pledge of the borrower's ownership interests. |
| Mortgage | A legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt. |
| Net Operating Income (NOI) | The income generated by a property after deducting operating expenses but before accounting for debt service and taxes. |
| Prepayment Penalty | A fee charged by a lender if a borrower pays off a loan before its scheduled maturity date. |
| Principal | The original amount of a loan, not including interest or fees. |
| Refinancing | The process of replacing an existing loan with a new loan, typically with different terms or a lower interest rate. |
| Term | The length of time over which a loan is scheduled to be repaid. |
| Underwriting | The process of evaluating a borrower's creditworthiness and the risk associated with a loan, typically performed by the lender. |
| Working Capital | The amount of liquid assets a business has available to cover day-to-day expenses and operational costs. |
| Balloon Payment | A large payment due at the end of a loan term to repay the remaining principal balance. |
| Capitalization Rate (Cap Rate) | The rate of return on a real estate investment property based on the income the property is expected to generate. |
| Cash Flow | The net amount of cash and cash equivalents moving into and out of a business, property, or investment. |
| Collateral | Assets pledged by a borrower to secure a loan, subject to seizure by the lender in the event of default. |
| Commercial Mortgage-Backed Security (CMBS) | A type of mortgage-backed security that is secured by mortgages on commercial properties, such as office buildings, retail centers, and apartment buildings. |
| Commitment Letter | A document from a lender to a borrower outlining the terms and conditions of a loan. |
| Construction Loan | A short-term loan used to finance the construction of a new building or development project. |
| Covenant | A promise or agreement in a legal contract, such as a loan agreement, specifying certain conditions or actions the borrower must meet or avoid. |
| Debt Yield | A financial metric used to assess the risk of a loan, calculated by dividing the property's net operating income by the loan amount. |
| Default | The failure to meet the legal obligations of a loan, such as missing payments or violating loan terms. |
| Discount Rate | The interest rate used to determine the present value of future cash flows in discounted cash flow (DCF) analysis. |
| Escrow | A financial arrangement where a third party holds and manages funds or documents on behalf of the parties involved in a transaction, such as a real estate purchase or loan. |
| Foreclosure | The legal process by which a lender takes possession of a property when a borrower fails to meet the obligations of a loan. |
| Gross Rent Multiplier (GRM) | A valuation metric used to estimate the value of income-producing properties, calculated by dividing the property's price by its potential gross annual income. |
| Guarantor | An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original borrower or party fails to meet their obligations. |
| Interest-Only Loan | A loan in which the borrower only pays the interest for a specified period, usually at the beginning of the loan term, with the principal balance remaining unchanged. |
| Joint Venture | A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project, such as a real estate development. |
| Lease | A contractual agreement between a property owner (lessor) and a tenant (lessee) that grants the tenant the right to use and occupy the property for a specified period in exchange for periodic rent payments. |
| Lien | A legal claim against a property that must be satisfied when the property is sold, usually to secure the payment of a debt or the performance of an obligation. |
| Loan Origination | The process of creating a new loan, including the evaluation of a potential borrower's creditworthiness, the negotiation of loan terms, and the preparation of loan documentation. |
| Loan Servicing | The ongoing administration of a loan, including the collection of payments, the management of escrow accounts, and the monitoring of loan performance. |
| Lockout Period | A period during which a borrower is prohibited from prepaying a loan or making principal reductions, typically included in loan terms to protect the lender's yield. |
| Market Value | The estimated price at which a property would sell in the current market, considering factors such as location, property condition, and current economic conditions. |
| Non-Recourse Loan | A loan that limits the lender's ability to recover losses in the event of default to the value of the collateral, without any personal liability on the part of the borrower. |
| Origination Fee | A fee charged by a lender for processing and originating a new loan, usually expressed as a percentage of the loan amount. |
| Partial Release Clause | A provision in a loan agreement that allows the borrower to release a portion of the collateral, typically in exchange for a corresponding reduction in the loan balance. |
| Points | Fees paid to a lender at closing to reduce the interest rate on a loan, with one point typically equal to one percent of the loan amount. |
| Pre-Approval | A preliminary evaluation by a lender of a borrower's creditworthiness and ability to qualify for a loan, usually based on the borrower's income, assets, and credit history. |
| Recourse Loan | A loan that allows the lender to recover losses in the event of default from both the collateral and the borrower's personal assets. |
| Subordination | The process by which a lender agrees to accept a lower priority claim on a borrower's assets, allowing another lender to have a higher priority claim. |
| Acceleration Clause | A contract provision that allows a lender to require a borrower to repay all or part of a loan if the borrower fails to meet certain conditions, such as missing payments or violating loan terms. |
| Blanket Mortgage | A mortgage that covers multiple properties or parcels of land, typically used by developers or investors. |
| Break-Even Ratio (BER) | A financial metric used to assess a property's ability to cover its debt obligations and operating expenses, calculated by dividing the property's total operating expenses and debt service by its gross operating income. |
| Building Code | A set of rules and regulations that specify the minimum standards for construction, alteration, and maintenance of buildings, intended to protect public health, safety, and welfare. |
| Capital Expenditure (CapEx) | Funds used by a company or property owner to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. |
| Capital Gains | The profit from the sale of an investment or property, calculated as the difference between the sale price and the purchase price. |
| Capital Improvement | A significant, long-lasting improvement or addition to a property that increases its value or extends its useful life. |
| Capital Stack | The composition of the various sources of capital used to finance a real estate project, including debt, equity, and mezzanine financing. |
| Common Area Maintenance (CAM) Fees | Fees paid by tenants to cover the costs of maintaining and operating shared spaces in a commercial property, such as lobbies, parking lots, and landscaping. |
| Conduit Lender | A financial institution that originates and services commercial mortgage loans, then pools and securitizes them into commercial mortgage-backed securities (CMBS) for sale to investors. |
| Deed | A legal document that transfers ownership of a property from one party to another. |
| Deed of Trust | A legal document that conveys the title of a property to a trustee, who holds it as security for a loan between a borrower and a lender. |
| Environmental Impact Assessment (EIA) | A study that evaluates the potential environmental effects of a proposed project or development, typically required as part of the permitting and approval process. |
| Equity Multiple | A financial metric used to measure the return on investment (ROI) for a real estate project, calculated by dividing the total cash distributions received by the initial equity invested. |
| Exit Strategy | A plan outlining how an investor or property owner intends to realize a return on their investment or dispose of a property, such as through a sale, refinancing, or lease. |
| Fair Market Rent (FMR) | An estimate of the rent a property would command in the open market, typically used to set rent levels for government-subsidized housing programs. |
| Fannie Mae | A government-sponsored enterprise (GSE) that buys and guarantees residential mortgages from lenders, providing liquidity to the mortgage market. |
| Freddie Mac | A government-sponsored enterprise (GSE) that buys and guarantees residential and commercial mortgages from lenders, providing liquidity to the mortgage market. |
| General Partner (GP) | In a partnership, the partner who has unlimited liability for the debts and obligations of the partnership and who actively manages the business. |
| Gross Potential Income (GPI) | The maximum amount of income a property could generate if it were fully occupied and all tenants paid their rent in full. |
| Ground Lease | A long-term lease of land, where the tenant has the right to build and use the property, but the land remains owned by the landlord. |
| Hard Money Loan | A short-term, asset-based loan that is typically used for financing real estate projects when traditional financing is not available, often due to the borrower's credit or the property's condition. |
| Hold Period | The length of time an investor or property owner plans to hold an investment or property before selling or exiting. |
| Interest Reserve | An account set aside by a lender to cover interest payments on a construction or development loan, typically funded by the loan proceeds. |
| Leasehold Estate | A tenant's interest in a leased property, granting the tenant the right to use and occupy the property for the term of the lease. |
| Limited Partner (LP) | In a partnership, the partner who has limited liability for the debts and obligations of the partnership and does not actively manage the business. |
| Liquidity | The ease with which an asset can be converted into cash without significantly affecting its value. |
| Master Lease | A lease between a property owner and a master tenant, who then subleases individual units or spaces to subtenants. |
| Net Lease | A lease in which the tenant pays a portion or all of the property's operating expenses, such as property taxes, insurance, and maintenance, in addition to the base rent. |
| Occupancy Rate | The percentage of a property's total units or space that is occupied by tenants, calculated by dividing the total occupied area by the total available area. |
| Operating Expenses | The costs associated with owning, operating, and maintaining a property, such as property taxes, insurance, utilities, and maintenance. |
| Percentage Lease | A lease in which the tenant pays a base rent plus a percentage of their gross sales or revenue. |
| Phase I Environmental Site Assessment (ESA) | A study that evaluates a property for potential environmental contamination, such as soil, groundwater, or building materials, typically required during the due diligence process for a real estate transaction. |
| Preferred Equity | A type of equity investment that has priority over common equity in the distribution of profits, typically offering a fixed rate of return and potentially convertible into common equity. |
| Pre-Leasing | The process of securing tenants for a property before it is completed or available for occupancy, typically used for new construction or major renovation projects. |
| Private Equity Real Estate (PERE) | An alternative investment strategy that involves the direct acquisition and management of commercial real estate properties or real estate-related debt. |
| Property Management | The administration and oversight of a property, including the day-to-day operations, tenant relations, and maintenance. |
| Property Tax | A tax levied on real estate, based on the assessed value of the property, typically used to fund local government services and infrastructure. |
| Real Estate Investment Trust (REIT) | A company that owns, operates, or finances income-producing real estate, typically offering investors a way to invest in a diversified portfolio of properties. |
| Rent Roll | A report or document that lists the tenants in a property, their lease terms, and the rent they pay, typically used by property owners and investors to assess the property's income potential. |
| Replacement Reserves | Funds set aside by a property owner or investor to cover the costs of replacing major components or systems of a property, such as roofs, HVAC systems, or elevators. |
| Second Mortgage | A mortgage that is subordinate to a primary or first mortgage, typically used to provide additional financing for a property. |
| Special Assessment | A tax or fee levied on property owners by a local government to fund specific public improvements, such as infrastructure or community facilities, that directly benefit the property owners. |
| Sponsor | An individual or company that initiates, organizes, and manages a real estate investment, typically responsible for raising capital, acquiring properties, and overseeing operations. |
| Stabilized Occupancy | The normal, sustainable occupancy level of a property, typically used as a benchmark for evaluating the property's performance and value. |
| Subordination Agreement | A legal document that establishes the priority of claims or liens on a property, typically used to allow a new loan or mortgage to take priority over an existing one. |
| Tax Increment Financing (TIF) | A public financing method used by local governments to fund infrastructure and community improvements, in which future increases in property tax revenue are used to repay the initial investment. |
| Triple Net Lease (NNN Lease) | A lease in which the tenant pays all of the property's operating expenses, such as property taxes, insurance, and maintenance, in addition to the base rent. |
| Underwriting | The process by which a lender or investor evaluates the risk of a loan or investment and determines the appropriate terms and pricing. |
| Vacancy Rate | The percentage of a property's total units or space that is unoccupied, calculated by dividing the total unoccupied area by the total available area. These additional 50 terms, along with the previous 50, provide a comprehensive understanding of commercial mortgages, real estate financing, and investing. Keep in mind that while some terms are specific to commercial mortgages, many are also applicable to the broader field of real estate and finance. |
Contact
For any inquiries regarding our commercial mortgage options or to speak with one of our
financing experts, please don't hesitate to contact us via phone or email.
We are committed to providing exceptional customer service and look forward to assisting you
with all of your commercial property financing needs.
Location:
500 Redland Ct Suite 300, Owings Mills, MD 21117
Email:
commercial@caliverbeach.com
Call:
(443) 738-1230