Tag: commercial real estate

Getting started in the commercial mortgage market can be daunting if you are not familiar with the jargon. In order to be a savvy commercial real estate investor, you first need to learn the lingo. Here are seven of the most important terms used in commercial mortgage discussions: 1. Gross Income This is the total amount of money the commercial property will bring in. It include rents as well as things like late fees or laundry/vending machine revenue. 2. Effective Gross Income This factors […]

Small businesses often need commercial real estate loans to purchase property for their company. These mortgages can also be used to refinance existing loans or to get funding to redevelop properties a firm already owns. Whatever the reason, securing the loan is an important part of achieving the goal. Here are three important mistakes to avoid when applying for a commercial loan. A Lack of CashMost commercial real estate loans require a substantial amount of money for a down payment. Yet lenders […]

Unlike the residential mortgage where personal income is critical, the commercial debt service coverage ratio is measures the income created by the property.