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Pre-payments: The costs of getting locked into a loan. (And how to avoid them.)

As rate hikes and inflation increase borrowing costs and wreak havoc on lenders’ ability to offer and close loans, the dynamics of market sentiment and pricing of the forward curves indicate that interest rates will decline in two to three years. Increasingly, there is a greater imperative for real estate investors to act quickly to …

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buildings

Hike Fright: How Rising Interest Rates Are–And Aren’t–Affecting Commercial Real Estate Lending

This summer, the mercury isn’t the only thing that’s rising. As inflation surges to a 40-year high, the Fed hiked interest rates by three-quarters of a percentage point, the biggest single rate hike since 1994. Before would-be property buyers can catch their breaths and adjust to higher borrowing costs, borrowers should be forewarned that similar …

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cash

How to Finance Non-Cash Flowing Properties

Cash flow is generally the key in determining the value of commercial real estate properties. However, some commercial real estate properties that do not generate cash flow, due to the loss of tenants, property repositioning or speculative construction, have significant value. Traditional lenders have rigid lending requirements and are risk averse.  For these lenders, cash-flow …

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sf bridge

What to Know about Short-Term Bridge Loans for Your CRE Business

A short-term bridge loan is a type of mortgage that provides borrowers with short-term capital that can be used to purchase and/or improve a commercial property until the property is repositioned and then refinanced or sold. The borrower will use the proceeds from the refinance or sale to pay off the short-term bridge loan at …

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