What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities
16
Jul
By Kyle Muth
0 Comments
Commercial Real Estate, Loan Programs, Real Estate Investments, ,

What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities

Those in the business of buying and selling commercial real estate have likely heard about CMBS loans. This is a guide to how CMBS loans work, the ways in which they are different from traditional commercial loans, and the advantages and disadvantages of choosing this type of financing. CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily living communities, office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral. That said, a CMBS loan is different from a traditional…
Read More
HUD Loans for Commercial Real Estate Properties?
09
Jul
By Kyle Muth
0 Comments
Commercial Real Estate,

HUD Loans for Commercial Real Estate Properties?

As investors, some may not know what a HUD loan is, but it is important to understand its impact on a select commercial real estate (CRE) investment. Having a HUD-insured loan can mitigate risk, provide attractive loan terms and overall help ensure the longevity of the project. In this article, we’ll dig into what a HUD loan is and its importance to a CRE investment. Understand this HUD doesn’t just insure loans for affordable housing developments; they also insure for market-rate multifamily development projects. These construction loans are officially referred to as 221(d)(4) loans and they provide some of the…
Read More
Mixed Use Properties — Why They Are a Good Investment
06
Jul
By Kyle Muth
0 Comments
Real Estate Investments,

Mixed Use Properties — Why They Are a Good Investment

Maybe you’ve never heard of the term mixed-use property, but we can guarantee you’ve been in one. Mixed-use properties exist all over the place – these properties are real estate developments that have different uses (retail, residential, offices, hotel, etc.). In a mixed-use property, the separate uses all compliment each other. Mixed-use properties come in all shapes and sizes: they can be a single building or take up an entire neighborhood. Right now, there is an increasing number of real estate investors looking to invest in this type of property, and you can be one of them! Investing in these…
Read More
How to Create Predictable Cash Flow
25
Jun
By Kyle Muth
0 Comments
Investing, ,

How to Create Predictable Cash Flow

Companies need to make financial statements of their businesses to track their spendings. These financial statements mostly include the income statement, balance sheet, and cash flow. Doing this helps the company to come up with plans on how to deal with their future spendings. But most of them are having a hard time predicting the cash flow of their business. Uncertainty about your cash flow makes it difficult for you to invest in long-term demands because you find it difficult to maintain balance, and it also comes with burdens. Here are some useful strategies to help you make your cash…
Read More
15 or 30-Year Loan for an Investment Property: What’s the Best Move?
17
Jun
By Kyle Muth
0 Comments
Mortgage, Real Estate Investments, ,

15 or 30-Year Loan for an Investment Property: What’s the Best Move?

There's a lot to be gained by buying an investment property. Not only can you take in monthly rental income from tenants, but you can also hold on to that property until its value increases and sell it at a profit.  However, many real estate investors can't buy a rental property outright. If you're looking to take out a mortgage for your investment property, you may be wondering whether to opt for a 15-year loan or a 30-year loan. There are pros and cons to both options. Here's what you need to know.  The 15-year mortgage The primary benefit of…
Read More
CMBS Loan Basics
11
Jun
By Kyle Muth
0 Comments
Blog,

CMBS Loan Basics

Some Basics on CMBS (Conduit) Loans Commercial real estate investors have a plethora of loan options to consider before choosing the right source. One of the most popular investment options is a CMBS loan. CMBS loans, also known as conduit loans, allow commercial real estate (CRE) investors an opportunity to finance commercial properties of all sizes; with loans starting as low as $2MM. Despite having been around since the 1900s, many investors are unfamiliar with what conduit loans are and how they work. This is especially true when working with small banks, as most simply do not offer CMBS loans.…
Read More
What Is a Fix & Flip Loan?
27
May
By Kyle Muth
1 Comment
Fix-and-Flip, ,

What Is a Fix & Flip Loan?

Fix-and-flip loans are short-term loans used by real estate investors to purchase and improve a property to then sell for a profit. These improvements range from minor renovations to a complete reconstruction of an existing home. These loans are used exclusively for residential real estate investments, so renovating a school, for instance, would not qualify for this type of funding. In a fix-and-flip project, the property is often purchased from MLS, off-market, at auction through a foreclosure or a bank short sale. A buyer may later try to sell the property “as-is” or may choose to add value by improving…
Read More