Commercial Mortgages post1

FC360 COMMERCIAL MORTGAGE

Includes:

·Shopping centers, industrial buildings, office buildings.
·Golf courses, resorts, hotels, parking garages, car washes.
·Construction loans, ground leases, seconds, wraparounds, etc.

Acquisition & Development
Raw land infrastructure development.

Adjustable Rate Commercial Mortgage
Interest rate moves with a specific index (Prime, T-Bills, etc.)

Construction Mini-Perm
Construction with 3 to 5 year loan, usually on income producing property.

Construction Loan with Take-out
Construction with prearranged takeout loan in place.

Fixed Rate Commercial Mortgage
Interest rate remains constant throughout the term.

Hard Money Loan
Loans from private lenders based primarily on the hard asset value (commercial building, vacant land, etc.)

Bridge Loan
A short term (2 yrs or less) bridge or project type loan.

Joint Venture (JV)
A financial partner in the development of real estate.

Participating Mortgage
Lender receives a kickback for gross income above a preset level.

Real Estate Sale and Leaseback
Lender purchases land and leases back to borrower (generally developer) for a fixed rent plus other considerations. Mortgages are issued on leasehold at market rates. Usually, produces more dollars than a mortgage.

Real Estate Purchase Loan
Lending for the purpose of commercial real estate.

Second Mortgage
Loan secured by equity behind that of the first lien.

Wraparound
Lender makes a second mortgage and assumes the first mortgage.

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