Commercial Real Estate Loan Payments Explained

Commercial Real Estate Loan Payments Explained // Commercial real estate loan payments have a lot of moving pieces that all can have an impact on the economics of a deal.

And while changes in interest rates tend to make all the headlines, this is only one piece of the puzzle when it comes to calculating loan payments, and their impacts on a property’s cash flows (and returns to investors).

So in this video, I want to break down the math behind commercial real estate loan payments, the terms that factor into these payments, and the effects of these terms and payment amounts on both a borrower and a lender in a real estate deal.

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🕒 Timestamps 🕒
0:00 Introduction
0:38 Two Separate Components
1:19 The Math
2:02 The Constant
4:06 Amortization & Term
6:12 Balloon Payments

#commercialrealestateinvesting #realestateinvesting

*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.

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Research and articles referenced in this video:
https://mf.freddiemac.com/product/conventional