5 Commercial Real Estate Loan Terms You Should Know

5 Commercial Real Estate Loan Terms You Should Know // When you're heading into your first commercial real estate investment, and you're taking out a commercial real estate loan on that property, you'll notice that there are a LOT of differences between a loan you'd take out on a single family primary residence and a commercial real estate investment property.
So in this video, we're going to go over 5 of the most important commercial real estate loan terms you should know, so you can head into your first (or next) commercial real estate acquisition prepared.
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[@BreakIntoCRE]

Any other CRE loan terms you've come across that have thrown you off? Let me know in the comments - thanks for watching!

[@pplcajason]

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[@MmeBaron]

I cannot stop watching your videos - so incredibly helpful and on point!

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You earned a subscriber! This content is so valuable! Thank you!

[@silencio926]

Binging your videos today, fantastic content. I look forward to reviewing and pursuing your courses.

[@richardmuir5493]

Very informative. Dave speaks clearly and easy to understand his points.

[@Marketplacere]

Great topic! It's important to educate clients about these things.

[@surferguy331]

One your best vids, clear and concise

[@frankokonkwo3662]

Love this. Thank you

[@GlennGoryl]

Excellent. Thank you.

[@YDINO69]

Video starts at 1:00

[@TheDude-vx6wn]

So for #5, if you have a lock out period, can you still sell units in your project while continuing to pay terms of the debt? Ie not pay it off entirely? Great video.

[@TonySopranoFFM]

Frankfurt in the background. Many greetings from germany!

[@BreakIntoCRE]

Thanks for watching!

[@wenderangeles7683]

great video! I'm looking to get a commercial equity loan. Do you have some Bank names to apply?

[@maxpowers3732]

What's usually include in the DSCR? Is it usually NOI/interest payment? One of the lenders I'm looking at is defining it as Net Income on a 12 month basis after operating, interest, depreciation, and other non-cash charges / interest expenses. Wouldn't that deduct the same interest that you're trying to pay from the income?

[@ralphsondoni707]

The way to get around prepayment penalties is to finance with a federally charted credit union.

[@BreakIntoCRE]

Thanks for the input Ralph!

[@continentalinspections418]

Looking to purchase a business and trying to research options on providing the Sellers with 80% from the bank and being creative with paying them the remaining 20% from the incoming revenue over 6 months or a year. Do you have a video or article that goes into detail for this type of financing? Thanks for your info. This was a great tutorial for a beginning investor in CRE.

[@jakee3315]

Great videos. Do you have templates for a developer to build and lease a commercial Building. The models I see are are based on commercial orojects in which you purchase. Thank you...

[@simfinso858]

Nice video podcasts.I am watching in India.

[@BreakIntoCRE]

Thank you!

[@galshapiraeth]

big like !

[@BreakIntoCRE]

Thanks for watching, Gal!

[@galshapiraeth]

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[@BreakIntoCRE]

@@galshapiraeth happy to help!

[@oklankang5156]

I have ballon home loan like /3.1% rate/23 year term .i got this loan at 2012 and I am paying back the principal in advance. would it be a good loan to repay the principal in advance in 23years?

[@jareddepalma654]

Do I need any license to do this? Also is this a commercial or just residential tool?

[@danazizian2823]

Why would a lender want to have a lockout period? I don’t understand

[@Kurt-rg8jq]

Lenders invest time/money to originate a loan and have their own return on their investment for each loan. Lenders get paid on the interest earned on that loan throughout the loan term period and when a Borrower pays it off, that income stream for the bank stops. So if a Borrower makes a loan and sells the property a month later and pays back the loan, the Lender's return on investment would be less. Lockout period ensures originating the loan is worth their time/money.

[@h00Lia]

💰

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