BusinessFirst Capital Blog
Understanding and Enhancing Your Business Credit Profile: A Key to Financial Success
Understanding Your Business Credit Profile Your business credit profile is more than just a snapshot of your financial health; it is a key asset that plays a significant role in your growth and opportunities. By managing your business credit profile effectively, you...
Demystifying the 1% and 2% Rules: Quick Guides for Smarter Real Estate Investing
In the realm of commercial real estate investing, quick yet effective evaluation tools are indispensable for making informed decisions. Among these tools, the 1% and 2% rules stand out as straightforward guidelines that assist investors in assessing a property's...
Understanding Holdbacks in Commercial Property Loans: A Guide to Risk Management and Project Success
In the realm of commercial real estate financing, various mechanisms are employed to safeguard the interests of both lenders and borrowers. One such mechanism is the "holdback" clause, a provision that withholds a portion of the loan funds until specific conditions...
Cracking the LTV Code: The Secret to Successful Commercial Real Estate Loans
The loan-to-value (LTV) ratio is a critical metric in commercial real estate financing, representing the proportion between a loan amount and the appraised value of the property securing the loan. Lenders utilize the LTV ratio to assess risk, as it indicates the...
Ground Leases: A Win-Win Strategy for Tenants and Landlords
A ground lease is a long-term agreement in which a tenant leases land from a property owner, typically for 50 to 99 years, with the intention of developing the property. At the end of the lease term, ownership of the land and any improvements made by the tenant...
Demystifying Internal Rate of Return for More Profitable Real Estate Investments
The Internal Rate of Return (IRR) is a pivotal metric in commercial real estate finance, offering investors a means to assess the profitability of potential investments. By calculating the percentage rate earned on each dollar invested over each period, IRR...
Interest-Only Loans: A Strategic Tool for CRE Borrowers
As a commercial real estate (CRE) loan broker, we’ve seen countless investors and developers leverage the right financing to achieve their goals. Among the many tools available, interest-only loans stand out as a flexible and powerful option for managing cash flow and...
Mastering DSCR: The Key to Smarter Commercial Real Estate Financing
In the realm of commercial real estate financing, the Debt Service Coverage Ratio (DSCR) stands as a pivotal metric, guiding lenders and investors in assessing a property's financial health. This ratio offers a clear lens through which one can evaluate whether a...
The Net Operating Income of Commercial Real Estate
Net Operating Income (NOI) is a fundamental metric in commercial real estate, serving as a key indicator of a property's profitability. By understanding and accurately calculating NOI, investors and property managers can make informed decisions regarding acquisitions,...