Blogs & Articles
Calculating Effective Gross Income: Key Insights for CRE Loan Analysis
To understand a rental property’s true earning potential, you need to look beyond headline rents. Effective Gross Income (EGI) tells you how much income the property actually generates after accounting for vacancy and credit loss, so it’s much more effective than...
How Lower Interest Rates May Influence Commercial Real Estate Markets
The Fed cut rates by 0.25% in September this year, bringing the federal funds rate — which refers to the short-term rate banks charge each other for overnight loans — down to 4.00% to 4.25%. For commercial real estate investors, rate cuts do more than reduce borrowing...
How to Get a Commercial Real Estate Loan in 2026
Are you planning to buy commercial real estate this year? Or perhaps expand or renovate a property you already own? Whatever your goal, you’ll need financing tailored specifically to these kinds of investments. And the good news is that lenders are becoming more...
Key Difference Explained: Discount Rate vs Cost of Capital
Thinking about pulling the trigger on a new commercial property? Two anchor metrics in CRE — the cost of capital and the discount rate — can go a long way in helping you measure the CRE deal’s profitability. These numbers are closely related but work differently, and...
30/360 vs ACTUAL/365 vs ACTUAL/360: How to Calculate Interest on CRE Loans
The biggest financial advantage in commercial real estate is leverage — using mortgage loans to control large assets while keeping your own capital free. That said, every loan is structured differently and it’s important to understand how the repayment arrangement...
How to Identify Obsolete Commercial Real Estate Properties and Types of Obsolescence?
Investing in commercial real estate can be financially rewarding because this asset class generates recurring income while holding its underlying value over time. Most properties are held for five to ten years, so there is enough time for appreciation and income...
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