By: Craig Higdon
On: Wednesday, April 11, 2007
In: Financial .
Rated:

Good credit for a commercial real estate investor usually means about twelve to fifteen “trade lines” of seasoned credit in a credit report, with several real estate loans either showing as active or having been paid off successfully.  Today, credit reporting systems use a complex method of evaluating credit patterns which is distilled into and issued as a “credit score.” 

By: Craig Higdon
On: Monday, February 05, 2007
In: Financial .
Rated:

In older investment properties, commercial properties that have been neglected by the current owner, or properties whose owners’ have fallen on hard times, there exists an opportunity for an educated investor to purchase real estate at a significant discount with high leverage!  Construction loans on commercial property usually allow the investor to come in with 15% to 20% of the total costs of the project provided the construction loan doesn’t exceed 75% to 80% of the final, stabilized value. 

By: Craig Higdon
On: Tuesday, January 23, 2007
In: Financial .
Rated:

A property selling for $1,000,000 with $100,000 in annual income has a GRM of 10.  The cap rate measures the return on investment for the capital invested in a property.  The cap rate assumes that the property is purchased all cash and is calculated by dividing the Net Operating Income (NOI) by the purchase price. 

By: Craig Higdon
On: Monday, January 08, 2007
In: Financial .
Rated:

You sign loan documents and money is funded into escrow.  In the case of a construction loan, only a portion of the total loan is released.  A:  Commercial loans have the added security of an income producing property providing the funds to pay the loan payments.  For residential loans, it’s the borrower’s income.  For any given property type, there is usually a maximum “loan to costs” and a maximum “loan to value.”