1031 Exchange Financing: Lining Up Debt Before the 45-Day Deadline
The 45-day and 180-day clocks run concurrently from the relinquished closing. How to size replacement debt so it does not create mortgage boot, and what a lender needs from you in which week.
Recourse vs Non Recourse Commercial Loan: What a Personal Guarantee Really Commits
Non-recourse does not mean nobody signed anything. A precise look at loss carve-outs versus springing full recourse, and the short list of acts that convert an entire loan balance into personal liability.
Commercial Loan Prepayment Penalty: Step-Down, Yield Maintenance and Defeasance Explained
Step-down, yield maintenance and defeasance are three different mechanisms, not three names for one fee. What each does, why defeasance exists in CMBS, and how to read the clause in your own loan documents.
Commercial Property LTV, LTC and Combined Leverage: Which Constraint Binds
LTV, LTC and combined leverage are three different tests with three different denominators. Lenders run all of them and size to the lowest. Here is how to work out which one is setting your proceeds.
Phase 1 Environmental Commercial Loan Requirements: When Lenders Order a Report and What Delays Closing
What a Phase I environmental site assessment covers under ASTM E1527, which lenders and programs require one, exactly what pushes a file into intrusive Phase II sampling, and how to sequence the work.
The Commercial Appraisal Process: Timeline, Cost Drivers, and How to Challenge a Low Value
A stage-by-stage walk through the commercial appraisal process: who orders the report, how the three approaches to value are reconciled, what moves turn time, and how a reconsideration of value must be submitted.
The DSCR Calculation Commercial Lenders Run on Your Property
The formula is NOI divided by annual debt service. The work is in how a credit officer builds each half, which is rarely how the offering memorandum builds it. Three worked illustrations show where they part.
How to Read a Commercial Loan Term Sheet, Line by Line
The loan amount and the rate are the two lines borrowers read. Prepayment, recourse carve-outs, reserves and conditions precedent are the lines that decide whether the deal closes on the terms you expected.
Cash Out Refinance Investment Property
Real estate investors spend years building equity through appreciation, mortgage paydown, and property improvements. Yet many investors make the same mistake: they allow that equity to remain trapped inside their properties instead of using it to create new opportunities. A cash out refinance investment property loan allows investors to access a portion of their property’s […]
Interest Rates And Commercial Financing: Why Borrowers Pay More Than They Expect
Securing commercial financing is about much more than simply getting approved. While many borrowers focus on loan amounts, down payments, and closing timelines, one factor often has a greater impact on the total cost of borrowing than anything else: interest rates. Even a small difference in interest rates can significantly affect monthly payments, cash flow, […]
