Can you explain the 360/365 thing? I think its where lenders technically advertise an interest rate that is slightly lower than it actually is? I dont fully understand it but someone told me about that.
@@lukesammann1959 Great topic - definitely something to consider for a future video. In the meantime, PropertyMetrics has one of the best/clearest articles I've seen on this topic - link here: propertymetrics.com/blog/30-360-vs-actual-360-vs-actual-365/
@@BreakIntoCRE got it, that's super helpful. It's crazy that banks are allowed to be misleading like that but it's good to be aware of. Do you account for that in your modeling?
Hello Justin, How important is the loan constant for you when analyzing a deal? It should not be higher than the going in cap rate of course ideally, but let's say rates change when your 2nd loan term begins and the loan constant becomes higher than your going in cap rate because interest rates are higher. Is that deal still beneficial if your monthly mortgage payment is supported by the rent and you can wait for the property to appreciate?
@@youtubecarspottersguide1 for a $5MM deal and $2MM equity requirement, this will generally be raised as a syndication from high net worth individuals and high income earners, often via ~$50K-$500K contributions from each investor.
What effect will bitcoin as a store of value have on the real estate market? How can it be incorporated into a fund model to beat inflation and avoid decreases in value of the building?
![4 Real Estate Financial Modeling MISTAKES To Avoid [& What To Do Instead]](http://i.ytimg.com/vi/tm5yHSC9qv0/mqdefault.jpg)
![4 Real Estate Financial Modeling MISTAKES To Avoid [& What To Do Instead]](/img/tr.png)
Any other CRE debt terms or structures you'd like to see covered in more detail in a future video on the channel?
Can you explain the 360/365 thing? I think its where lenders technically advertise an interest rate that is slightly lower than it actually is? I dont fully understand it but someone told me about that.
@@lukesammann1959 Great topic - definitely something to consider for a future video. In the meantime, PropertyMetrics has one of the best/clearest articles I've seen on this topic - link here: propertymetrics.com/blog/30-360-vs-actual-360-vs-actual-365/
@@BreakIntoCRE got it, that's super helpful. It's crazy that banks are allowed to be misleading like that but it's good to be aware of. Do you account for that in your modeling?
Topic suggestion: presenting to an investment committee (as an analysts)
Justin has the amazing ability to clearly clarify complex CRE finance terms into simplistic presentations with a unique clarity and passion! Thanks!
Agreed a great teacher
Love your channel - learned so much. I love how only you can make the word “annual” sound naughty 💪🏽
Great info as usual.
Thanks for watching, Brian!
I'd like to see a video on how an investor who is smaller than institutional size goes about finding due diligence providers/vendors in a new market.
Hello Justin,
How important is the loan constant for you when analyzing a deal? It should not be higher than the going in cap rate of course ideally, but let's say rates change when your 2nd loan term begins and the loan constant becomes higher than your going in cap rate because interest rates are higher. Is that deal still beneficial if your monthly mortgage payment is supported by the rent and you can wait for the property to appreciate?
what's the difference between a balloon payment and bullet payment?
good info ........... 60% LTV need that 40% down payment $5,000,000 price $2,000,000 where does one get that money ?
investors
@@BriceBriceBabyy would one do a reit ? Syndication ,
@@youtubecarspottersguide1 for a $5MM deal and $2MM equity requirement, this will generally be raised as a syndication from high net worth individuals and high income earners, often via ~$50K-$500K contributions from each investor.
What effect will bitcoin as a store of value have on the real estate market? How can it be incorporated into a fund model to beat inflation and avoid decreases in value of the building?
Great feedback - thank you!