Understanding How a Commercial Mortgage is Structured If you’ve never received a commercial loan or a commercial mortgage, it can be easy to become confused by the many unique terms and elements that are specific to understanding commercial loans as opposed to residential and private loans. Fortunately, Clopton Capital is here to provide you with a...
Year: <span>2019</span>
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What Is a Commercial Mortgage Broker and Why Use One?
What are commercial real estate loan brokers? Commercial real estate loan brokers generally act as mediators to connect lenders with borrowers in need of funding. This can sometimes also extend to providing funds themselves. Generally, a commercial real estate loan broker is your best friend when it comes to getting the funding you need to...
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A Comprehensive Guide to Financing Apartment Buildings
Key Guidelines for Apartment Building Financing Looking to learn about some guidelines for apartment building financing? We have you covered. First and foremost, you need to secure the most competitive rates. That will protect you right now and for the life of your loan, ensuring that you’re in the best possible financial situation. You don’t want...
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Hotel Financing Options, Structure, and Requirements
A Brief Look at Hotel Finance Structure Hotel finance structure can be confusing for the layperson to understand. After all, when you look at the options available you’re confronted with a long list of acronyms and loan types. SBA. USDA. CMBS. You’ll see words like ‘mezzanine’ and ‘non-recourse.’ But what exactly do all these acronyms and...
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Commercial Mortgage Rates Update
Long term interest rates are still sitting near all time lows since the huge declining trend in rates starting at the beginning of the year. The yield curve currently has somewhat of a shallow “U” shape to it, with 2 year treasury rates sitting at 1.54%, 5 years at 1.43%, and 10 years at 1.56%....
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Commercial Cash Out Refinance vs. Selling
Looking to get some cash out of the investment you’ve been maintaining? You might think that your only option is to sell the property, which can be costly and means you’ll no longer enjoy the benefits your investment might have been bringing on an ongoing basis, or could bring in the future. So are you...
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Understanding Mezzanine Financing Real Estate Loans
We get it — the world of real estate financing and investing is filled with what seems like hundreds of confusing terms for different loan types. It can be frustrating trying to keep them all straight, particularly when an ‘expert’ starts throwing these terms around as if you should already be expected to understand each...
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Small Balance Loans: Fannie Mae vs Freddie Mac
Looking for a small loan to purchase or fund a multifamily apartment building? Then you’ve probably encountered the names Fannie Mae and Freddie Mac. While these two lenders certainly don’t have brand names that inspire images of massive, international banks, they’re actually two of the biggest lending entities in the United States. But what are...
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CMBS Loans and How They Work
If you’re in the market to purchase commercial property and are in need of the funds to make it happen, you’ve likely been researching every type of loan in the book. It can be a confusing process, with a wide range of different loan types, structures, providers, and servicing styles—how do you know which one...
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How Non-Recourse Loans Bring Big Advantages to Borrowers
By now you’ve probably noticed that there are dozens of loan types when it comes to securing funding for a commercial real estate property project. Whether you’re purchasing land for the sake of developing on it, rehabbing an existing property, or building a property from the ground up—you need funding. Most investors turn to commercial...
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How Does Joint Venture Real Estate Financing Work?
In the world of real estate and commercial property financing, there’s one style of acquiring capital that’s in a category of its own—joint venture real estate financing. So how exactly does this unique structure to acquiring capital work, and how can you apply it effectively to your own goals to boost your chances of success?...
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Understanding Preferred Equity in Real Estate
If you’ve spent much time in the world of real estate development, you’ve likely heard about the term ‘preferred equity,’ particularly in relation to funding real estate projects. But what exactly is preferred equity real estate financing? What are the pros and cons of preferred equity investments? And what do lenders look for in preferred...
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Why is Understanding Commercial Mortgage Rates Important
Commercial mortgage is typically a loan that you get for your business in order to purchase or acquire a commercial property. Compared to residential mortgage, it differs in several ways; The loan to value ratio may be higher for a residential mortgage than commercial mortgage. The interest rate on residential mortgage is also lower than that...
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How to Get an Apartment Commercial Loan
Owning or if you are considering purchasing an apartment building (multifamily building) can be a high-maintenance undertaking that can be even more complicated without appropriate financing. You need to find the right lender to obtain a commercial loan to finance your apartment building. Unlike conventional mortgages, commercial loans vary in rates, terms, fees and overall...
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How DIP (Debtor in Possession) Financing Works
The Debtor in Possession Financing (DIP), is kind of financing for companies that are having troubles with cash flow and facing bankruptcy. It is different from other methods of financing since it is given priority over existing equity, debt and any other claim. Debtor in Possession Financing however, cannot be used freely by companies. It...
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Complete Q&A Guide: Commercial Mortgage Bridge Loans
This article presents all of the variety of frequently answered questions about commercial mortgage bridge loans– especially for the reader to have a clear picture on what the above subject is all about. Q1. What is a Bridge Loan? Bridge loans are applicable as a means of short- term finance, or when instant bulky cash payments...
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Can I Get a Mortgage for a Commercial Property?
What types of commercial mortgages can I apply for? Understanding how Commercial Mortgages Work and commercial mortgage requirements- here are some professionally driven answers. Applying for a commercial mortgage can be a frustrating and stressful exercise, especially when dealing with traditional banks still gun-shy so many years after the leverage crisis that triggered the 2007 big...
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How to Refinance a Commercial Mortgage?
In the current economic status, so many people are refinancing their commercial mortgages. This is because businesses or commercial entities see it as an avenue to clear their current loan and get some financial freedom while others see it as a chance to inject the money into new projects that will probably generate additional...
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What Are Non Recourse Loans and How Do They Work?
If you have ever searched for a commercial loan, you might have come across two different types of loans, secured and unsecured loans. Unsecured loans often come with a higher interest rate, but they work without collateral. Secured loans need collateral to reduce the lender’s risk, and borrowers need to pay a lower interest rate...
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How Commercial Mortgages Work?
Applying for a commercial mortgage can be a frustrating and stressful exercise, especially when dealing with traditional banks still gun-shy so many years after the leverage crisis that triggered the 2007 big national recession. Can I get a mortgage for a commercial property? According to the Mortgage Bankers Association’s newly released 2019 Commercial Real Estate...
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What Is a Construction Loan?
A construction loan is more specific type of a loan designed for construction that has interests reserves, and the repayment ability is accomplished when the project is built. The loan enables a new home to be built through a duration of construction itself. Once you have secured your loan, the money lender will be paying...