The truth about "bridge to bridge" financing
Wednesday, February 13
“Bridge to bridge” financing, in the commercial real estate context, refers to the origination of a bridge loan (a short term commercial mortgage) that is used to pay off a previous bridge loan.The term “bridge” hints at the purpose of such short-term commercial mortgage notes in general — they a...
Interest-only commercial mortgages: how they work, & where to get one
Wednesday, February 06
Cash, flow.That’s the point of taking on an interest-only (“I/O”) commercial mortgage. Before diving in here, make sure you understand the basics of how an amortization schedule works. If you don’t, read this post first.So, cash flow.An interest-only loan is simply a loan that collects interest-o...
What could shake up commercial real estate finance in 2019?
Monday, December 17
The commercial real estate market has been going strong, really strong, for several years now. As far back at 2015, major financial conferences in the industry were asking panels of bankers the classic “What inning are we in?” question— comparing the real estate cycle to a baseball game, with the...
Checklist: How to land a commercial bridge loan
Tuesday, December 04
There are several uses for a bridge loan in commercial real estate. Bridge loans can help close an acquisition deal more quickly than a permanent lender (like a bank), fund a more risky value-add deal, or provide intermediate funding before another liquidity event (like a sale or permanent refina...
Why banks hate your Airbnb multifamily deal
Monday, November 26
So Airbnb hit $1 Billion in revenue last quarter. Not all time, that was their revenue for the quarter alone. Airbnb is a huge deal for real estate and hospitality, but not because it has led to the downfall of the hotel industry. Instead, the home-sharing trend has become a factor in the value o...
Face off: CMBS vs Life Co lenders
Tuesday, November 06
Presenting tonight’s heavyweight match-up!In one corner, we have commercial mortgage-backed security (CMBS) loans. CMBS issuers create loans to be securitized in tranches and held as bonds by buyers on the open market. CMBS loans are a staple of the commercial real estate debt market and often of...