Category: Commercial Real Estate
Every loan rep or a broker must know the significance of timing. The timing must be opportune; because if that is not the case, the deal will never float to completion. So we can say that timing is closely associated to getting the loan approval letter issued in no time. However, what must be done when the borrower is not at all able to get the needed docs on time? Does that mean a long wait until everything gets approved? No. However, it will always involve a little hard work on your, the borrower's, part.
One of the biggest advantages of having a commercial property is that it still performs for you even when the market is sluggish. And whenever the economy becomes robust, you can expect the commercial property to provide you a steady flow of income. However, the major challenge for any investor is to decide whether to lease the commercial property or to buy it. Many of the leading commercial mortgage lenders in the U.S. will suggest you to go with buying the piece of commercial realty, and there are reasons for offering such a counsel. Only a few reasons-your liabilities lessen whenever you own an asset in the name of another entity (that is, your company); creating a company and leasing it to yourself-are enough to let you know the benefits of being your own landlord. In this post, we are uncovering many of the similar reasons.
For every action there is a reaction. If things are bad for one, they have to be good for another, right? The same principal applies in the world of investment real estate. We have all read about the developers and owners of commercial real estate that are undergoing tremendous financial pressures with some being forced into bankruptcy. So what happens to their real estate? Well, the owner or lender puts it on the market at a discount to attract a solid, mortgage worthy buyer who can perform quickly and close a deal. Unfortunately, you as an individual investor or partnership will never see these deals because they typically involve several properties valued at several millions of dollars. And why would you want them? If the current owner can't sustain them what magic can you perform?