Commercial Real Estate

Getting into commercial real estate is a great idea with so many new businesses opening up and so many needing new space getting into commercial real estate is not just a great idea its the perfect idea.

There was a time when financing a commercial real estate business deal was a relatively simple matter. There were very a small number of lenders to choose from and even fewer choices to make about method and structure. That time has long because past as the number of considerations that must be evaluated when selecting a capital supplier are virtually endless.

In order to raise project velocity, get better operating efficiency, protect internal capital, enhance leverage and lower the overall cost of capital it is necessary that a sponsor develop an integrated capital formation tactic surrounding refinance/acquisition/ development scheme. Among the lots of things that commercial borrowers in today’s marketplace need to address when seeking capital are:

Level(s) of the capital formation to be addressed;
The selection of the appropriate capital provider;

Control provisions;
Rate, term, pricing and structure;
Operating considerations;
Third party requirements;
Closing time frame;
Certainty of execution;
Recourse provisions;
Exit and pre-payment options;
Post closing servicing issues;
Inter-creditor or other multi-party agreements;
A whole host of other value-added considerations.

The effect of the capital acquired on tax, balance sheet, future projects or portfolio considerations