If you're new to the commercial real estate world, you might be wondering what some of these terms mean.
A lot of these terms are used in everyday conversation and really just mean "the real estate business." But if you're looking to dive into the world of commercial real estate, it's helpful to know the lingo.
As a leading provider of Broker Commercial Loan in Texas, we would like to guide you through the top 10 commercial real estate terms every professional should know:
Lease: A contract between a tenant and landlord that gives the tenant the right to occupy a property for a specified period of time at an agreed upon price.
Net lease: A lease where the tenant pays all expenses related to operating the property, including taxes, utilities and maintenance costs. This type of lease is often used by small businesses whose owners don't have enough capital to pay upfront costs themselves but want more flexibility than they would get with traditional financing options like loans or credit cards.
Gross lease: A lease where the tenant pays all expenses related to operating the property but does not pay for any building repairs or maintenance costs during their tenure as tenants—those are covered by landlords instead (which means landlords have more control over when and how those repairs are made).
Triple Net Lease: This is a lease agreement where the tenant pays for all property taxes, insurance, and maintenance of the property. The landlord only pays for repairs that are beyond normal wear and tear.
Landlord's Obligation: The landlord's obligation is to make sure that the property is safe and habitable (fit for human life). For example, there may be an issue with the building's water supply or electrical system, in which case it would be the landlord's responsibility to fix it.
Loan-to-value ratio" (LTV): The percentage of the property's value that is financed by a loan.
Capitalization rate (cap rate): A measure of how much income a property generates on a yearly basis, based on its purchase price and mortgage balance.
If you're looking for a Texas commercial mortgage loan, Commercial Loans Of Texas can help.We work with businesses of all types to secure financing for commercial real estate projects. Whether you need a small loan for your office expansion or a large loan for a multi-building shopping center, we can provide the financial backing you need to make your dreams come true.
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Are you heading self-employed business and struggling to qualify for a mortgage?
It is the perfect funding option available for real estate investors.
This loan helps borrowers to purchase an investment property and better their cash flow.
This is the most popular funding option among self-employed borrowers who couldn’t fully document their income or provide tax returns.The Stated Income Loans Texas is one of the most flexible lending options that does not require any income documentation, income verification, tax returns and on most transactions.
Also, you don’t need to show any bank statements to get the financial support to buy another rental property.
In the flip side, this famous real estate loan program comes with repayment terms up to 30 years.
