What is Commercial Real Estate Deal Management?

12:26:2021
Commercial real estate deal management is the process of managing the various stages of a commercial real estate transaction. This includes evaluating the property and its potential, negotiating the terms of the deal, coordinating due diligence, overseeing the closing process, and managing the post-closing activities. The term “commercial real estate” refers to any property that is used for business purposes, such as office buildings, retail stores, warehouses, and apartment complexes. Commercial real estate deal management involves a range of activities, from market analysis and appraisal to negotiating leases and financing. It also involves developing marketing plans and managing the project's budget. When managing a commercial real estate deal, the goal is to ensure that the deal is profitable for all parties involved. This involves assessing the potential of the property…

Simple Mortgage Calculator

12:23:2021
Mortgage calculators are a useful tool for any individual looking to purchase real estate, in that it can help them determine how much they can afford to borrow and how much interest they will be charged on a given loan. A simple mortgage calculator can provide a potential borrower with an estimate of their monthly payments, the total amount of interest that will be paid over the life of the loan, and other important information about the loan. The most basic mortgage calculator requires that the user input the loan amount, the interest rate, and the loan term. Once this information is entered, the calculator will then calculate the monthly payment, the total amount of interest paid, the total amount of payments made, the total amount of principal paid, the…

15 Commercial Real Estate Terms You Should Know

12:20:2021
Below are 15 Commercial Real Estate terms you should know: Capitalization Rate - The ratio of net operating income (NOI) to current market value of a property. (See our post on Cap Rates here!) Tenant Improvement - Any improvements made to a space to accommodate the tenant’s specific needs. Rent Roll - A list of tenants and their respective rents in a commercial property. Due Diligence - The investigation that a buyer performs to verify the condition of a property before purchase. Net Operating Income (NOI) - The income generated from a property after expenses are deducted. Gross Leasable Area - The total area of a property that is available for tenants to lease. Ground Lease - A lease of land only, without any buildings or improvements, to a tenant.…

How To Calculate Vacancy Space

12:19:2021
Vacancy space is an important metric in the real estate industry. It can be used to measure the amount of unoccupied space in a rental property or other real estate asset. Calculating vacancy space is relatively simple, but it can be time-consuming and requires accurate data. Here are the steps for calculating vacancy space. Gather data – The first step in calculating vacancy space is to gather data about the property. This includes the total number of units, the number of units occupied, the size of each unit, and any amenities included in the rental agreement. Calculate total space – The next step is to calculate the total amount of space available in the property. This can be done by multiplying the number of units by the size of each…

How to Calculate Rentable Square Feet

12:17:2021
Rentable square feet (RSF) is a measure of area used to determine the amount of rentable space in a building or other property. It is calculated by multiplying the usable square feet (USF) of the property by the load factor, which is a percentage of the USF that can be rented out. This calculation is used to determine the amount of rentable space in a building, which is important for businesses that need to consider rental costs in their budgeting. The first step in calculating RSF is to determine the usable square feet (USF) of the property. This can be done by measuring the length and width of each room or area of the property and then multiplying the two measurements together. This will give you the total USF for…

What is Amortization?

12:13:2021
What is amortization? Amortization is the process of spreading out payments on a loan over a period of time. It is often referred to as a repayment plan. The amount of the loan, interest rate, and number of payments are all taken into consideration when calculating the amortization of a loan. Amortization is generally used in consumer loans, business loans, and leases. It is also used to pay for large purchases like cars and homes. In the case of consumer loans, amortization allows the consumer to pay off the loan in small, manageable payments over an extended period of time. Business loans are typically amortized to match the expected cash flows of the business. In amortization, the loan is divided into equal payments, which include principal and interest. The principal…

What Is A Letter of Intent?

12:11:2021
What is a Letter of Intent? A Letter of Intent (LOI) is a document commonly used in commercial real estate transactions. It is often used by buyers to communicate their intention to purchase a property, and it is used by sellers to communicate their intention to sell. The LOI is typically an informal agreement that outlines the general terms of the sale. It typically includes information such as the purchase price, payment terms, closing date, and other pertinent information. The LOI is also used to define the parties’ responsibilities and obligations during the transaction. The LOI is not a binding contract, and it is not legally enforceable. However, it is an important step in the process of purchasing commercial real estate. It helps to ensure that both parties are on…

How to Calculate Loan to Value

12:08:2021
The Loan to Value Ratio (LTV) is a measure of how much a loan is in comparison to the value of the asset being purchased. It is often used to assess the risk of a loan and to decide how much money a lender is willing to lend. Calculating the LTV ratio is relatively straightforward. First, the loan amount is divided by the purchase price of the asset. The resulting number is the LTV ratio. For example, if a loan is for $50,000 and the asset being purchased is worth $100,000, the LTV ratio is 50%. The higher the ratio, the more risk the lender is taking and the more likely they are to require additional security or a higher interest rate. The LTV ratio is an important consideration for…