Commercial Real Estate Investor Mistakes

5 Reasons Your Commercial Mortgage Rate Could Go Up Before Closing

For both new and experienced investors, the commercial loan diligence and closing process can be stressful, and the last thing any borrower wants to think about is their interest rate increasing between submitting their loan application and closing. However, there are several factors that can lead to an interest rate change before the loan closes, which can not only affect investor returns, but potentially down payments if the change is drastic enough. The 5 most common reasons an interest rate increase can happen are the following:One of the easiest ways to protect yourself from interest rate increases is to lock the interest rate before closing. Locks (if available) can freeze the rate for...

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5 Mistakes First-Time Commercial Real Estate Investors Make

Commercial Real Estate is unlike any other investment because it is a real asset that can be affected by not only the real estate market, but also the greater financial markets, changes in consumer habits, employment, and other seemingly unrelated factors. That is why it is one of the most complex investments to make for those that are new or unfamiliar with the industry. Here are some of the most common CRE newbie pitfalls:There are many reasons a property might be the “wrong” property for a first-time investor. Some of the most common reasons (although non-exclusive) are the following:The wrong location. Maybe the property:is too far from the buyer’s primary residence for proper ov...

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