Published in StackSource Blog·Jan 24How Preferred Equity Providers Look at Your DealIf you’re in the market for gap financing (capital that sits between senior debt and general partner equity in the capital stack), preferred equity might be a great solution for you. In this blog, we will explain what preferred (aka “pref”) equity investors look for in a deal. …Commercial Real Estate5 min readCommercial Real Estate5 min read
Published in StackSource Blog·Jan 3Credit Scores — How Residential vs. Commercial Real Estate Lenders Consider ThemCredit Scores are used very differently between residential real estate lenders and commercial real estate lenders. What is a credit score? A credit score is a numerical representation of an individual’s creditworthiness and risk level as a borrower. It is based on information in a credit report, which is a…Credit Score3 min readCredit Score3 min read
Published in StackSource Blog·Dec 7, 2022Holdbacks & Earnouts — Strategies to Get More CapitalIn commercial real estate, there are sometimes situations where owners need to refinance but the property’s business plan is not entirely complete. For example, the business plan might be to add value through renovations and increasing rents. What do you do if you are only 70% of the way through…Commercial Real Estate3 min readCommercial Real Estate3 min read
Published in StackSource Blog·Oct 14, 2022Inflation, Cap Rates, & US Treasuries. How Are They Connected?What is Inflation? Inflation is the price increase of goods and services over time. To maintain a stable economy, the government has set the target of 2% inflation per year. This means that something that you can buy for $1 today will require $1.02 dollars next year. “The principle of inflation targeting is…Inflation5 min readInflation5 min read
Published in StackSource Blog·Jun 21, 2022Why Getting a 100% Leverage Land Loan is Tricky & How StackSource Tackled ItWe Did The Impossible — 100% Leverage for a Land Purchase It’s now June of 2022 and risk is everywhere. It’s hard to watch any financial news outlet without hearing the topic of recession being discussed. As the Federal Reserve continues hiking interest rates to battle inflation, many tech companies are freezing their hiring and even considering layoffs. …Commercial Real Estate4 min readCommercial Real Estate4 min read
Jun 7, 20223 Of The Most Common Exit Strategies and Why Having One is ImportantWhenever you consider buying an apartment in need of major repairs, a key element is a thorough business plan that includes your exit strategy. Your exit strategy is just as important as the reasons to buy. In the current economic climate, the future is relatively uncertain. An uncertain future is…Real Estate3 min readReal Estate3 min read
Published in StackSource Blog·Apr 11, 2022Sunbelt States: Why Real Estate Investors are Targeting Sunbelt StatesThere were two key takeaways from the 2022 Mortgage Bankers Association’s Commercial Real Estate Finance Conference: (1) the aim to lend more capital in 2022 and (2) clear favoritism for projects in “Sunbelt” or “Smile” states. These are the current hot markets where most commercial real estate investors want…Commercial Real Estate4 min readCommercial Real Estate4 min read
Published in StackSource Blog·Mar 2, 20222022 CRE Lender Outlook: interest rates, hot markets and shifting product type trendsThe StackSource team recently attended the 2022 Mortgage Bankers Association’s Commercial Real Estate Finance Conference in San Diego. The main theme amongst capital providers was that 2021 was a great year, and they are all expecting to do even more business in 2022. What else was on the minds…Commercial Real Estate3 min readCommercial Real Estate3 min read
Published in StackSource Blog·Sep 27, 2021No Dutch Interest!I recently forwarded an email to some industry colleagues with a subject line reading “No Dutch Interest!”. It was a catchy title, but I was curious how many of them could explain Dutch Interest simply. It turns out not everyone has a full understanding of this topic. …Interest Rates4 min readInterest Rates4 min read
Published in StackSource Blog·Aug 24, 2021What is Loan Amortization, Really?Let’s assume you want to buy a property that costs $1,000,000. How are you going to pay for it? Are you fortunate enough to have $1,000,000 in the bank and can pay in all cash? Most people don’t have this luxury and need to borrow a portion of the…Loans5 min readLoans5 min read