Archive for the 'Education' Category

Fairly Negotiating Real Estate Placement Fee Splits

Yazan: realtycapital | 15 November 2009 | No Comments
Categories: Education

Using a Weighted-Average Formula That Works….

The Prepayment Fee – The Fine Line between Mortgage Maturities

Yazan: RECI | 11 November 2009 | No Comments
Categories: Education

Prepayment penalties should closely match the borrower’s holding term and operating objectives.

Mining for Land Loans

Yazan: RECI | 20 November 2008 | No Comments
Categories: Education, News|Views

The key with land loans is relationship lending with seasoned and well-capitalized sponsorship.

Cash is King in the Real Estate Capital Kingdom

Yazan: realtycapital | 12 November 2008 | No Comments
Categories: Education, News|Views

“No Go” Without Cash Flow…

Is There Any Correlation between Capitalization Rates and Years?

Yazan: realtycapital | 22 October 2008 | No Comments
Categories: Education, News|Views

Numerology Adds Humor to Real Estate Capital Valuation Principals in an Uncertain Market.…

Seven Rules of Effective Prepayment Negotiations — Getting the Right Loan Terms

Yazan: realtycapital | 17 December 2007 | No Comments
Categories: Education

Debt Term Needs to Match Sponsorship Operating Objectives.

Landing Land Loans

Yazan: realtycapital | 08 November 2007 | No Comments
Categories: Education, News|Views

Land development ventures will be one of the best investment opportunities available, particularly broken deals that can be completed by seasoned players with solid financial backing.

Eight Trends in Successful Construction Loan Financing

Yazan: realtycapital | 26 September 2007 | No Comments
Categories: Education, News|Views

Underwriting Criteria More Stringent, Yet Realty Construction Funds Available.

"Long Story Short" – Ten Reasons for Locking into Long-Term Realty Financing

Yazan: realtycapital | 19 September 2007 | No Comments
Categories: Education, News|Views

Despite Market Turmoil, Long-Term Permanent Loans Find Best Mortgage Pricing.

LIBOR-Priced Mortgages – Time for a Checkup

Yazan: realtycapital | 15 September 2007 | No Comments
Categories: Education, News|Views

When should floating-rate loans be used?

"Dial4News" Technology Launched

Yazan: realtycapital | 10 September 2007 | No Comments
Categories: Education, News|Views, The Institute

Affordable Phone Answering Service System Delivers Automated, Continuous News.

Medical Office Buildings – Seven Secrets to Financing Costs and Profits

Yazan: realtycapital | 09 August 2007 | No Comments
Categories: Education

MOBs are certainly financeable, especially those affiliated with hospitals and other established health-care networks.

Realty Capital Markets Value Sponsorship

Yazan: realtycapital | 15 June 2007 | No Comments
Categories: Education, News|Views

Five Tips on Sizing the Borrower for Income Property Loans.

A Long Story Short: Tens Reasons for Locking into Long-Term Realty Financing

Yazan: realtycapital | 20 April 2007 | No Comments
Categories: Education, News|Views

Long-Term Permanent Loans Find Best Mortgage Pricing.

Loan Amortization – The Overlooked Underwriting Variable

Yazan: realtycapital | 11 April 2007 | No Comments
Categories: Education, News|Views

Loan Payment Format Leads to Better Cash Flow Management.

Mortgage Pricing Continues Narrowing between Credit and Non-credit Loans

Yazan: realtycapital | 09 March 2007 | No Comments
Categories: Education, News|Views

Intense Competition Creates Slimmer Risk Margins.

Fune-tuning a Permanent Mortgage

Yazan: realtycapital | 26 January 2007 | No Comments
Categories: Education, News|Views

Any underwriting advantage helps win deals above and beyond rate and term.

Mortgage Pricing Continues Narrowing between Credit and Non-credit Loans

Yazan: realtycapital | 15 November 2006 | No Comments
Categories: Education, News|Views

Intense Competition Creates Slimmer Risk Margins.

The Real Estate Capital Institute Announces Editorial Advisory Group Nominations

Yazan: realtycapital | 27 October 2006 | No Comments
Categories: Education, People

Realty Finance Professionals and Scholars Provide Insight into Funding Trends.

Three Underwriting Tweaks Maximize Income-Property Loans

Yazan: realtycapital | 15 October 2006 | No Comments
Categories: Education, News|Views

Fine-tuning Yields Better Pricing and Leverage

Debt Service Coverage Underwriting Remains Liberal

Yazan: realtycapital | 15 July 2006 | No Comments
Categories: Education, News|Views

Mortgage Payment Schedules Freely Used to Maximize Loan Proceeds

The Changing Dynamics of Loan Fees

Yazan: RECI | 19 February 1998 | No Comments
Categories: Education

Highly Competitive Lending Environment Impacts Mortgage Fees.

Real Estate Capital Basics – Construction Loans Observations

Yazan: RECI | 01 December 1993 | No Comments
Categories: Education

Suggestions and tips for construction loan fundings on apartments and commercial properties as per updated metrics using “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Standby Commitments Observations

Yazan: RECI | 01 July 1993 | No Comments
Categories: Education

General suggestions for structuring income-property Standby Commitments according to updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Interim Loans Observations

Yazan: RECI | 01 May 1993 | No Comments
Categories: Education

Interim funding notes relating to income properties as per current criteria per “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Floating-Rate Permanent Loans Observations

Yazan: RECI | 01 April 1993 | No Comments
Categories: Education

General notes about structuring floating-rate debt per updated news based on “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Fixed-Rate Permanent Loans Observations

Yazan: RECI | 01 March 1993 | No Comments
Categories: Education

 
Important Negotiating Points suggested for fixed-rate permanent loans for income properties are outlined as follows:

In addition to rate and term, prepayment formulas are key discussion points.  More often than not, prepayment formulas can be recast subject to additional rate premiums which may be acceptable to the borrower if recapitalization flexibility is needed.
Should borrower have client [...]

Real Estate Capital Basics – Construction Loans Pros & Cons

Yazan: RECI | 01 December 1992 | No Comments
Categories: Education

Brief outline of key benefits and concerns relating to construction loans for income properties as per current metrics using “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Hybrid Loans Pros & Cons

Yazan: RECI | 07 August 1992 | No Comments
Categories: Education

Advantages and concerns with hybrid loans used to fund income properties. Based on updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Standby Commitments Pros & Cons

Yazan: RECI | 01 July 1992 | No Comments
Categories: Education

Pros and cons of income-property Standby Commitments according to updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Subordinate Loans Pros & Cons

Yazan: RECI | 01 June 1992 | No Comments
Categories: Education

Subordinate loans pros and cons relating to multifamily and other income properties using updated information from “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Interim Loans Pros & Cons

Yazan: RECI | 01 May 1992 | No Comments
Categories: Education

Review of various interim-loan positive and negative issues for multifamily and commercial properties using updated metrics per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Floating-Rate Permanent Loans Pros & Cons

Yazan: RECI | 01 April 1992 | No Comments
Categories: Education

Benefits and concerns for lenders and borrowers about floating-rate loans as per current sizing using “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Fixed-Rate Permanent Loans Pros & Cons

Yazan: RECI | 01 March 1992 | No Comments
Categories: Education

Fixed-rate debt advantages and disadvantages based on updated information per “The Guide to Real Estate Capital Markets” originally published in 1983 and 1989.

Real Estate Capital Basics – Equities Pros & Cons

Yazan: RECI | 01 February 1992 | No Comments
Categories: Education

Highlights of benefits and issues relating to equity realty capital structures for multifamily and commercial income properties. Based on updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Construction Loans

Yazan: RECI | 01 December 1991 | No Comments
Categories: Education

Key highlights for underwriting construction loans. Summary based on updated parameters per “The Guide to Real Estate Capital Markets” orginally published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Participating Loans

Yazan: RECI | 01 October 1991 | No Comments
Categories: Education

Participating and convertible loans underwriting discussions including junior and mezz debt programs for multifamily and other income properties using updated information from “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Standby Commitments

Yazan: RECI | 01 July 1991 | No Comments
Categories: Education

Overall guidelines for underwriting Standby Commitmenst for income properties. Based on updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Subordinate Loans

Yazan: RECI | 01 June 1991 | No Comments
Categories: Education

Subordinate loans underwriting highlights including junior and mezz debt programs for multifamily and other income properties using updated information from “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Interim Loans

Yazan: RECI | 01 May 1991 | No Comments
Categories: Education

An executive summary relating to structuring interim loans for apartments and commercial properties as per updated metrics using “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

Real Estate Capital Basics – Underwriting Floating-Rate Permanent Loans

Yazan: RECI | 01 April 1991 | No Comments
Categories: Education

Basic underwriting metrics for sizing floating rate debt on income properties using updated criteria per the “The Guide to Real Estate Capital Markets” published in 1983 and 1989.

MORTGAGE RATES

« "Current permanent loan rates for income-properties start at 5.5%. Dial 773-CAPITAL (227-4825) for the Real Estate Capital Rateline for daily update." »

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Las Vegas, NV - February 6, 2010 - According to industry leaders gathering in Las Vegas this week, debt capital is readily available for 2010.  Optimism is in the air and the mortgage lenders are starting to offer more generous terms and conditions.  In summary, timing is excellent for select borrowers in securing debt based on the following conditions:  (1) Recovering economy, (2) Ample supply of capital and (3) Limited supply of financeable real estate assets.  The following highlights summarize the 2010 state of the realty capital markets including an overall outlook and overall funding program offerings:  Back to Basics:  As lenders workout of their legacy problems, new funding goals surface which are clearly more ambitious than 2009. Still underwriting of actual numbers w/o projections, yet inflation fears exist. Most lenders are Indifferent to spreads, but not competition. Valuing real estate properties in a declining market still a challenge. More allocation of funds available above target amounts if deal flow is of sufficient quality Underwriting Dynamics:  As has been the case last year, high-quality projects in major markets backed by excellent sponsorship and cash flow characteristics are most desired—especially based on low leverage of 65% of value.  Location/Property Types: Major MSAs strongly preferred for optional pricing and leverage.  Otherwise a substantially most costly financing with lower leverage. Preferred property types ranked in order:  (1) Multifamily, (2) Credit-Tenant lease of all property types, (3) Industrial, (4) Retail, (5) Office - however medical office ranks equal to Industrial and (5) Lodging. Pricing (Permanent Fixed-Rate Loan): Agency pricing for apartments starts in the low to mid-5% range for 5 year or greater term. Life company pricing starts mid-5% to 6% for 5 years or more term mostly targeted for commercial property pricing (agencies are more competitively priced) More entrepreneurial funds start at 7% or more targeting secondary markets, smaller fundings, older properties and lodging assets. Add a pricing premium of 25 to 50 basis points for loans below $5 million. Yield differential disappearing - typical ($5 to $50 million) vs. larger loans. Forward funds available up to a year based on 6 o 8 basis points premium per month.  Leverage: Above 65% LTV on a select basis combined with lower spreads. Values based on the lower of: (a) purchase price, (b) appraised value or (c) lender imposed capitalization rate.