Waltzing with the Walking Dead: The World of Zombie Companies
As the chills of Halloween hover around the corner, it’s the perfect time to discuss an increasingly used term in the financial world – ‘zombie company’.
Posts
Category: <span>Insights and Trends</span>
Financing Include a Loan Balloon? Be Prepared
I’ve been thinking a lot about balloons.
Not the pretty red ones that float into infinity if you let go of the string. I love those balloons!!
I’m talking about loans with a balloon payment.
I have some of those balloons, but I do not love them. I love them even less with the increase in interest rates. A lot, lot less.
Conventional loans for commercial real estate – owner-occupant or investment properties – are not fixed for 15 to 30 years like a residential loan. The term is negotiable, but the longest term we (Jim and I) have negotiated is a 10-year rate lock. In our situation, the most recent rate locks have been 5 to 7 years before the balloon payment looms.
Why It’s Time to Start Working on Your NNN Estimates for Next Year
Owning commercial investment real estate can be both rewarding and demanding. As an owner who self-manages their property, you’re familiar with the unique challenges and responsibilities that come with this role. One key task that should never be left to the last minute? Preparing your NNN (triple net lease) estimates for the upcoming year. With the year drawing to a close, now is the time to plan, prepare, and ensure a seamless experience for both you and your tenants.
