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.

**AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account.

Research and articles referenced in this video:

[BreakIntoCRE]

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

[kwimbsl]

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.

[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!

[thelastgeneration]

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

[beyondfive]

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

[cheesehead]

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