Real estate investors use the capitalization rate, or cap rate, to determine whether a potential investment property shows enough potential return on investment (ROI) to make it a worthwhile purchase. It’s based on annual returns, so if a property performed well or poorly for one year, this would be reflected in its calculation. The cap…
An FHA multifamily loan is a mortgage loan, issued by a lender and insured by the Federal Housing Administration (FHA), that’s used to purchase a property with five or more units. These loans are subject to FHA loan limits and qualifications. FHA loans have lower interest rates and down payment requirements than conventional mortgages. FHA…
There are three types of financing available to small business owners looking for a loan to purchase an apartment complex. The type of loan they choose comes down to how well qualified they’re and how long they plan on keeping the building after purchasing it. Here are the three best types of apartment loan options:…
Multifamily financing allows real estate investors to purchase or refinance small multiunit properties with two to four units and large apartment complexes with five or more units. Multifamily loans are good for both new and experienced investors and have interest rates as low as 2.625% with terms up to 35 years. There are four types…
A blanket mortgage allows a borrower to purchase or hold multiple properties under the same financing agreement. Properties held in a blanket loan can be sold without invoking the due-on-sale clause in the mortgage, which requires the loan to be paid in full when a property is sold. This allows you to use the proceeds…
The best hotel financing has multiple uses, high maximum loan amounts, and low interest rates. Different types of loans serve different purposes, such as acquisition, construction, renovation, or maintenance, when financing a large, complex project like a hotel. Below, we have listed the six best types of hotel loans available and the best provider for…
Fix-and-flip loans typically have terms of less than two years, with fast closings in a matter of a couple of weeks. There are several types of loans used for fix-and-flip purposes. Listed below are the five most common and the best provider for each type of loan: : Best hard money lender : Best cash-out…
When your business decides to acquire commercial real estate, you must decide whether to buy or lease the property. If you buy the property, you’re either paying cash upfront or financing the cost of ownership of the property. Once the payment is made in full, you own the property outright. With a lease, you’re paying…
