A borrower facing foreclosure is in a bad spot. Loss of their property, litigation costs, damage to their reputation because of the lawsuit, and damage to their ability to borrow money in the future. A lender facing foreclosure is in a bad spot too. The risk that a foreclosure sale won’t bring enough proceeds to …
When a borrower fails to meet its loan obligations, the lender may try to foreclose on the property securing the loan. “Foreclosure” is just the series of steps a lender has to take in order to force the sale of such property and use the sale proceeds to recover its unpaid debt. This is simple enough …
How do you feel about a criminal conviction on your record? Defending against a civil suit for intentional infliction of emotional damage? They don’t sound too bad? Well, how about a fistfight with a tenant on the front lawn of your rental property? If you’d prefer to avoid these scenarios, it might be a good …
Buying at the tail end of the housing bubble in early 2006, an old professor of mine bought more house than he should have. After a divorce and an expensive health issue, he just couldn’t make the loan payments anymore. In fact, he admitted that he was nearly insolvent. He’d taken a second loan secured …
The concept of zoning is fairly simple. A governing body enacts laws to create districts within its jurisdiction and regulations to govern the uses and structures inside those districts. The creation of these districts and regulations are designed to serve the jurisdiction’s general welfare by promoting growth and development in accordance with the body’s planning …
The equity multiple is a commonly used performance metric in commercial real estate, and yet it’s not widely understood. In this article, we’ll take a look at the equity multiple as it’s used in commercial real estate, and we’ll also walk through several examples step-by-step. What Is the Equity Multiple? First, what exactly is the equity …
The mortgage constant, also known as the loan constant, the debt constant, or the mortgage capitalization rate, is an important concept to understand in commercial real estate finance. Yet, it’s commonly misunderstood. In this article, we’ll take a closer look at the mortgage constant, discuss how it can be used, and then tie it all …
Financing short falls within the commercial real estate market have become a common occurrence. The great recession has made traditional lenders more sensitive to risk, frequently leaving developers and project investors with large financing shortfalls. Sponsors can seek family and friends financing or a larger joint venture (JV) equity injection, but occasionally this gap may …
Here’s our latest infographic on the jobs recovery. This infographic shows job growth by state over the past month, year, 3 and 5 year periods. As visualized in the charts below, employment growth has been positive over the past few years, but in most states there’s still a long way to go.