Commercial Real Estate Loans - 4 Things To Know BEFORE Financing a Deal

Commercial Real Estate Loans - 4 Things To Know BEFORE Financing a Deal // ​
If you're coming into commercial real estate from the residential sector (or from a different industry altogether), the financing of commercial properties and the terms associated with commercial real estate loans can feel pretty complex.
The way these loans are structured, how payments are made on commercial real estate debt, and even the fees and penalties to look out for when financing deals are all pretty unique, but these are also really important things to consider when you’re trying to value commercial properties and dial in your underwriting.
So to make sure you have the foundations covered, especially in the midst of all the uncertainty in the market we’re seeing today, in this video, we'll cover four things you need to know about commercial real estate loans before getting into the game, and how each of these things can impact a commercial real estate deal.
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🕒 Timestamps 🕒
0:00 Introduction
0:55 The 2-Part Formula For Interest Rates
2:21 Beware of Prepayment Penalties
4:22 Amortization vs. Term
6:39 How Lenders Determine Proceeds
9:39 How To Learn More About CRE Loans
#commercialrealestate #commercialrealestateinvesting
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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Research and articles referenced in this video:
www.globest.com/2023/06/08/re...

[@BreakIntoCRE]

Any other debt-related topics you'd like to see covered in a future video?

[@zdmsr]

Would love to see a deep dive course on Udemy on just CRE Debt and Financing. Covering everything from the basics like LTV to advance topics in the securitization of SASB Bonds

[@davidroldan6007]

Yeah. We should talk more about debt, which is used basically in every deal.

[@user-kw6im1bs1l34]

Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.

[@user-yk7yf6ow8s09]

The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.

[@user-bw5ws8fr9t12]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@user-yk7yf6ow8s09]

STEPHINE KOPP MEEKS is who i work with look her

[@user-bw5ws8fr9t12]

Thanks for recommending i find her and left her message online

[@thebicyclenoob]

Thanks as always, would be curious to hear your thoughts about private debt funds. Seen a lot of press on the likes of Ares, Blackstone and Carlyle talking about their RE private debt funds, so would be great to hear your thoughts on this. How different is the level of modelling and underwriting in a private debt fund setting vs traditional bank/lender

[@Daves_Gone_Wild]

Awesome video buddy.. please keep us updated what's going on in the commercial real estate market!

[@thelastgeneration1926]

what would you say about choosing a career in life insurance or being a commercial loan broker. which can make more money?

[@beyond92five]

What will be the index (such as US Treasury) for UK and Europe?

[@cheesehead7278]

Brother you’re delivery is extremely hard to listen to. Try and stay more monotoned and not so up and down. Great info though