Understanding Triple-Net (NNN) Properties and Financing

There are several options when looking to diversify your investment portfolio, especially in the commercial real estate asset class. A borrower’s risk tolerance, passive or active investment activity, long-term goals, location, and current equity and capital position can make finding the right investment property a unique experience. Options for commercial financing are available from several…

What Does NOI Mean? How to Calculate NOI

To acquire commercial real estate, prospective borrowers undergo an underwriting process. Investment property underwriting allows lenders to assess the profitability of a property as well as the risk of borrowers and therefore, whether they should approve a given commercial loan request. The factors involved in underwriting help to determine loan amounts, terms, and amortizations, so…

Recourse vs. Non-recourse

The key determining factor in every real estate credit decision is what collateral the borrower is pledging as security and whether there is additional security the lender requires.  Real estate loans generally have two financing options – loans with recourse and loans without recourse (“non-recourse”). The primary difference between these types of loans is as…