Investment Commercial Mortgages
How do you finance Investment Properties in Vancouver?
Investment property financing is simply driven by the Net Operating Income of the asset, as a sum of the lease income generated from the tenant's rent roll. The gross income is deducted by the operating expenses to operate the asset, adjusting for any additional rent collected from the tenants on a triple net (NNN) basis to arrive at your final NOI.
The commercial mortgage terms will vary depending on whether you have an operating company supporting the purchase such as for owner-user financing or as an investment property mortgage.
In the case of investment properties, the loan amount is underwritten based on an assumed interest rate, amortization period, cash flow covenant and a NOI (to simplify the matter).
Commercial mortgages terms vary and are very much negotiable. These terms depend on the strength of the borrower, specific asset class, how the opportunity is presented to lenders and the amount of competition at the table. To obtain best in market terms, competition is a major factor in creating negotiation power as with many other traditional businesses.
The service I received was beyond my expectations! I was provided with various options to chose from. Derek walked me through all details in order to pick the best financing option to fit my needs! I highly recommend this company.
-Sergey Reger, CEO
Planar Distribution Ltd.