If 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. …

Credit 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…

In 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…

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…

We 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. …

Whenever 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…

There 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…

The 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…

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. …