The Foreclosure Process Step by Step

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 …

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How to Navigate the Real Estate Eviction Process

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 …

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When a Deed in Lieu is a Friend Indeed

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 …

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Understanding Arm’s Length Transactions

Arms length transactions are important to understand in commercial real estate, particularly for lenders. To see why consider the following scenario. Suppose you’re the lender to an LLC formed to acquire an office building. However, after closing the loan you discover that the LLC’s managing member is the brother of the seller. It turns out the brothers conspired to transfer …

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A Practical Guide to Understanding Zoning Laws

Why is zoning important? Zoning laws determine what kind of structures can be built, whether or not an existing property can be re-purposed, and even whether or not an existing structure can be replaced with something new at all. Of course, even if these aren’t changes you are currently considering, you might have a neighbor trying …

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Do You Know These Essential Zoning Terms?

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 …

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How The Equity Multiple Works In Commercial Real Estate

The equity multiple is a commonly used performance metric in commercial real estate, and yet it’s not widely understood. In this short 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 of all, what exactly is …

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How The Mortgage Constant Works In Real Estate Finance

The mortgage constant, also known as the loan constant, 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 together with a relevant example. What is The …

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Mezzanine Financing Basics and The Intercreditor Agreement

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 out family and friends financing or a larger joint venture (JV) equity injection, but sometimes this gap …

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U.S. Employment Growth Trends by State

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.