Structure and Requirements For Commercial Mortgages

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 quick primer to help you understand how your commercial loan mortgage will be structured, which factors will influence it, and how you can complete a rough calculation of how your loan might be structured. In many ways, commercial loan mortgages and loans are structured much...

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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 succeed and pursue your goals you have for your business. Top commercial mortgage brokerage firms leverage decades of lending and brokerage to give each borrower exactly the connections and loan terms they need for long-term success. What makes the top commercial mortgage brokerage firms successful?...

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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 to limit your search just to banks within shouting distance of you—nationwide lenders often bring an increased level of expertise and networks for securing you the best possible loan. From there, you can establish a financing option for any commercial building with five units or...

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Hotel Financing Structure, Options, 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 hotel financing terms mean, and how can you begin to understand them so that you can move forward? Don’t worry—Clopton Capital is here to help. We’ll give you some brief information on hotel financing to get you started, and you can contact us directly for additional details....

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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%. Due to the flat yield curve, the FED is expected to try to steepen it by lowering short term rates (Fed Funds rate) in the September meeting, most analysts expect a .25% decrease, while other are expecting a .50% decrease. Credit: mortgagenewsdaily.com If you are...

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Commercial Cash Out Refinance vs. Selling

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 out of options? Not necessarily. In commercial real estate, there’s a transaction known as a commercial cash-out refinance, and it’s a powerful way to access cash out of your commercial property mortgage without having to sell it outright. While a commercial cash-out refinance does come...

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Understanding Mezzanine Financing Real Estate Loans

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 of them in depth. But even within this world of confusing terms and loan types, mezzanine financing real estate loans are some of the least understood. Their unique structures, terms, and use cases make them one of the most misunderstood loan types in the real estate...

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Small Balance Loans: Fannie Mae vs Freddie Mac

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 Freddie Mac and Fannie Mae? And how do they affect your ability to fund your small apartment building loans? In this post, we’ll look at the important details about Freddie Mac and Fannie Mae, their loan terms, differences, and the pros and cons of each....

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CMBS Loans and How They Work

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 is right for your unique situation and will serve you well? How do you know whether you’ll qualify? One common form of commercial real estate loan is the CMBS loan. Also known as conduit loans, CMBS loans are commercial mortgage backed securities. What makes them...

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How Non-Recourse Loans Bring Big Advantages to Borrowers

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 real estate loans to get the funds they need to move forward. But how do you choose between the many unique loan structures and types that are available? And how can you possibly be expected to know all of their differences? Fortunately, that’s where we...

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How Does Joint Venture Real Estate Financing Work?

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? Let’s find out. How Does Joint Venture Real Estate Financing Work? A real estate joint venture is structured to help with the financing and ongoing development of projects in the real estate market. In general, a joint venture between a developer and financier involves a...

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Understanding Preferred Equity in Real Estate

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 equity real estate deals? We’ll answer all of those questions and more in this post. What is preferred equity real estate financing? Many investors, capital providers, and real estate developers use the term ‘preferred equity’ or ‘preferred equity real estate financing’ often. But what exactly...

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Why is Understanding Commercial Mortgage Rates Important

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 residential mortgage than commercial mortgage. The interest rate on residential mortgage is also lower than that of commercial mortgage. A mortgage rate is always the rate of interest you are charged on a mortgage. Hence commercial mortgage rate, is the rate on a loan you get for your business to buy a commercial property. These rates are determined and terms dictated...

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How to Get an Apartment Commercial Loan

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 structure. There are few things you need to consider. Pros and cons of buying an apartment The Pros Income – with owning an apartment you get to collect rent at a regular basis Depreciation- the value of apartments is assumed to depreciate over time. This...

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How DIP (Debtor in Possession) Financing Works

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 can only be utilized by those enterprises that file for bankruptcy protection under Chapter 11 in the United States of America. The financing given allows you to raise the necessary capital to fund your operations as the bankruptcy case is running its course. When to...

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Complete Q&A Guide: Commercial Mortgage Bridge Loans

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 are required. The typical bridging loan is often repaid within 1 year- this is because the interest rates for this kind of funding is comparatively much higher than common high street financing. Hence, this type of bridge loan funding is [and again] only suitable for...

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Can I Get a Mortgage for a Commercial Property?

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 national recession. However, according to the Mortgage Bankers Association’s newly released 2019 Commercial Real Estate Finance Outlook Survey, commercial mortgage loan is expected to increase by 13 percent compared to 2018. Also, based on the Mortgage Bankers Association, commercial property sales volumes were 11 percent...

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How to Refinance a Commercial Mortgage?

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 cash. Either way, here are some details that you need to know when refinancing your mortgage. How does it work? Understanding how commercial mortgage refinancing works is very easy. It is all about lessening the stress involved by servicing the current loan than taking another...

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What Are Non Recourse Loans and How Do They Work?

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 as compared to non-secure loans. There are two major types of secured loans, recourse loans, and non-recourse loans. These loans come with different risks and benefits. What Are Non-Recourse Loans And How Do They Work? ‘Non-recourse’ (as defined by the Internal Revenue Service IRS) in...

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How Commercial Mortgages Work?

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 Finance Outlook Survey, commercial mortgage loan is expected to increase by 13 percent compared to 2018. Also, based on the Mortgage Bankers Association, commercial property sales volumes were 11 percent higher during the first three quarters of 2018 than during the same period in 2017....

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What Is a Construction Loan?

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 the constructor after every period of the work completion. How does mezzanine financing work in construction financing? Mezzanine financing works in a away that the private companies, make an offer to investors to buy debt notes to their companies with the choice to convert those...

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Commercial Real Estate Property In San Diego

Commercial Real Estate Property In San Diego

A commercial real estate portfolio is a collection of different investment assets that are held and managed to achieve a financial goal. However, growing a commercial property portfolio in San Diego can be challenging, yet many investors are creating extraordinary wealth through property. You can expand your commercial real estate portfolio by leaps if you utilize the right strategies. In this post, we’ll give you some helpful tips that worth following. Why Some Investors Failed To Grow Their Portfolio Let’s take a look at few reasons why some investors don’t expand their property before we go into steps to growing...

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Commercial Loan In San Antonio

Commercial Loan In San Antonio

How To Get A Commercial Loan To Develop Your Property In San Antonio Expanding to a new location, buying or renovating commercial real estate in San Antonio is an exciting move but at the same time challenging as much money are at stake. If you’re a property developer, landlord, or investor, there are different finance available to help you kick-start your next project. You’ll need commercial real estate loans to finance the work. These loans offer manageable monthly payments, lower interest rates, and longer repayment terms than many other kinds of business loans. However, there are so many options of...

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Factors That Affect Commercial Real Estate Loan Rates In Phoenix

Factors That Affect Commercial Real Estate Loan Rates In Phoenix

Commercial real estate loan rates have steadily increased over the past few years. Given the increase in rates, it’s however essential for investors to have access to commercial real estate loan rates that they can afford. In this post, we’ll explain the definition of commercial real estate loan and cover some factors that affect the loan rates. What Are Commercial Real Estate Loans? A commercial real estate loan is a type of loan that is used to finance investments. This type of loan can be used to purchase or renovate owner-occupied properties, as well as income-producing commercial properties. For example,...

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Commercial Real Estate Loan In Los Angeles

Commercial Real Estate Loan In Los Angeles

To view more information about our commercial mortgage & bridge loan products, use the navigation at the top of the page. Purchasing commercial property in Los Angeles to either set up a new facility or expand the existing one is often a major commitment that is usually financed by a commercial real estate loan. However, you need first to know whether you’re qualified when seeking a loan for commercial real estate before you get caught up in what rate you’re going to get. Many different factors determine who will qualify, so it’s essential you do some research on the commercial...

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Commercial Bridge Loans in New York

Commercial Bridge Loans in New York

How Do They Work? To view our current offering, click here –> Commercial Bridge Loans Commercial bridge loans are a flexible loan method intended to provide short-term financing until a borrower can get more permanent financing, such as a mortgage or term loan. These loans are popular in some markets, including the real estate market, where they act as an excellent source of interim financing for real estate projects but not serving as permanent financing. Many people living in New York are familiar with these loans when purchasing commercial property. Although these loans have substantial benefits, they also come at...

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Commercial Mortgages Program Infographic

Commercial Mortgages Program Infographic

Clopton Capital is a nationwide provider of commercial mortgages for acquisitions and refinances. In the infographic below you can find relevant information on our commercial mortgage programs that are available for these transactions. Our capital sources include life insurance companies, banks, credit unions, pension funds, & private debt funds. To see more about this program go to the commercial mortgages web page.  

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