So for #5, if you have a lock out period, can you still sell units in your project while continuing to pay terms of the debt? Ie not pay it off entirely? Great video.
Looking to purchase a business and trying to research options on providing the Sellers with 80% from the bank and being creative with paying them the remaining 20% from the incoming revenue over 6 months or a year. Do you have a video or article that goes into detail for this type of financing? Thanks for your info. This was a great tutorial for a beginning investor in CRE.
Great videos. Do you have templates for a developer to build and lease a commercial Building. The models I see are are based on commercial orojects in which you purchase. Thank you...
What's usually include in the DSCR? Is it usually NOI/interest payment? One of the lenders I'm looking at is defining it as Net Income on a 12 month basis after operating, interest, depreciation, and other non-cash charges / interest expenses. Wouldn't that deduct the same interest that you're trying to pay from the income?
For most commercial banks Debt service coverage ratio is calculated by taking your Net Operating Income/Annual Debt service. In your case, yes your lender is already considering the proforma interest payment into the calculation, which is a bit strange. Usually from an underwriting perspective we want to see the actual cash flow of the business, which is not represented in your case.
I have ballon home loan like /3.1% rate/23 year term .i got this loan at 2012 and I am paying back the principal in advance. would it be a good loan to repay the principal in advance in 23years?
Lenders invest time/money to originate a loan and have their own return on their investment for each loan. Lenders get paid on the interest earned on that loan throughout the loan term period and when a Borrower pays it off, that income stream for the bank stops. So if a Borrower makes a loan and sells the property a month later and pays back the loan, the Lender's return on investment would be less. Lockout period ensures originating the loan is worth their time/money.
Any other CRE loan terms you've come across that have thrown you off? Let me know in the comments - thanks for watching!
I'm trying to get into the biz. Who do you work for if I may ask and are they hiring?
So for #5, if you have a lock out period, can you still sell units in your project while continuing to pay terms of the debt? Ie not pay it off entirely?
Great video.
You earned a subscriber! This content is so valuable! Thank you!
I cannot stop watching your videos - so incredibly helpful and on point!
One your best vids, clear and concise
Binging your videos today, fantastic content. I look forward to reviewing and pursuing your courses.
Great topic! It's important to educate clients about these things.
Very informative. Dave speaks clearly and easy to understand his points.
Frankfurt in the background. Many greetings from germany!
Thanks for watching!
Love this. Thank you
Looking to purchase a business and trying to research options on providing the Sellers with 80% from the bank and being creative with paying them the remaining 20% from the incoming revenue over 6 months or a year. Do you have a video or article that goes into detail for this type of financing? Thanks for your info. This was a great tutorial for a beginning investor in CRE.
Great videos. Do you have templates for a developer to build and lease a commercial Building. The models I see are are based on commercial orojects in which you purchase. Thank you...
great video! I'm looking to get a commercial equity loan. Do you have some Bank names to apply?
What's usually include in the DSCR? Is it usually NOI/interest payment? One of the lenders I'm looking at is defining it as Net Income on a 12 month basis after operating, interest, depreciation, and other non-cash charges / interest expenses. Wouldn't that deduct the same interest that you're trying to pay from the income?
For most commercial banks Debt service coverage ratio is calculated by taking your Net Operating Income/Annual Debt service. In your case, yes your lender is already considering the proforma interest payment into the calculation, which is a bit strange. Usually from an underwriting perspective we want to see the actual cash flow of the business, which is not represented in your case.
Excellent. Thank you.
The way to get around prepayment penalties
is to finance with a federally charted credit union.
Thanks for the input Ralph!
Do I need any license to do this? Also is this a commercial or just residential tool?
Nice video podcasts.I am watching in India.
Thank you!
Video starts at 1:00
I have ballon home loan like /3.1% rate/23 year term .i got this loan at 2012 and I am paying back the principal in advance. would it be a good loan to repay the principal in advance in 23years?
Why would a lender want to have a lockout period? I don’t understand
Lenders invest time/money to originate a loan and have their own return on their investment for each loan. Lenders get paid on the interest earned on that loan throughout the loan term period and when a Borrower pays it off, that income stream for the bank stops. So if a Borrower makes a loan and sells the property a month later and pays back the loan, the Lender's return on investment would be less. Lockout period ensures originating the loan is worth their time/money.
big like !
Thanks for watching, Gal!
@@BreakIntoCRE thank you for doing all videos! and also for your course !!
@@galshapiraeth happy to help!
💰
The contents are informative and very helpful, however, watching the presenter live is a visual treat. He is very handsome .
B. B. Sharma
India
Hello,am I Bindu ,from Bangladesh ,how about give a lone