INVESTOR TRAINING
ALREADY A ROCK STAR?
LOGIN HERE

3 Commercial Real Estate Tips We've Learned So Far

As we build out Rock Star's new home we're learning about all the wonderful things we had no idea about when it comes to commercial real estate.  In this week's Rock Star minute we share 3 of them and also share a quick office construction update...

 

LIKE WHAT YOU SEE? SUBSCRIBE TO OUR YOUTUBE CHANNEL

Find us on Social Media

Related Videos

0 comments on “3 Commercial Real Estate Tips We've Learned So Far”

  1. Hey Tom, Nick and the RS Team! A BIG CONGRATS on moving into your OWN space soon! That's fantastic! The space looks awesome and I look forward to my next trip to Toronto (and nearby) to come for a visit!

    I am a little confused by your Commercial financing topic of payments changing and the payments being larger at the beginning and then getting smaller over time. We haven't ever had this issue (unless I misunderstood you) on our commercial properties (no residential component). They were regular 25 year amortization at X % rate and the payments have stayed the same for years (unless we refinanced them to pull out equity...which we did to re-invest in other commercial properties!). Is this more an issue on your side because your are doing construction financing? Because that's a whole different thing. Actor Dave needs to know more! : )

    Cheers and keep on being AMAZING!

  2. Dave!

    Figures a Canadian actor living his dream in L.A. would be the one to point this out!

    Your real estate expertise is still strong!! 🙂

    And you're right of course, I should have been much more specific and explained that you can get "regular" style repayment structures but we chose not to.

    Here's the breakdown that we got back via email from our commercial mortgage contact...and we went with "straight line" b/c of course we hate fixing our rates! With the straight line structure our payments are front loaded pretty heavily.

    --------

    It all depends on the loan repayment structure. Typically they fall into one of the following 2:

    Straight line:

    - principal payment same every month over life of loan
    - interest payment fluctuates monthly depending on # of days in months and interest rate (if on floating rate)
    - this repayment option is typically only available to floating interest rate
    - total month payment (cash flow) requirement is typically higher
    - total interest cost over life of loan is lesser than blended repayment (see below)

    Blended repayment:

    - typically fixed interest rate chosen on specific term
    - fixed monthly payment over the interest rate term (ie, 5 years)
    - better cash flow management
    - total interest cost higher than above option as more payment applied to interest at early stage of loan

    - Tom

crossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram