Property Debt Research
How to identify accurate property debt information.
When searching for commercial property debt information, it can be difficult to identify accurate loan information. Reonomy allows you to uncover not only origination date of last loan, but also lender information, maturity dates and price of last recorded mortgage. You also have the ability to filter searches by any of these criteria to target loans coming to term on mortgage or that may be functioning without debt and more accessible for a potential sale. By filtering by maturity date, you can potentially identify a property in need of refinancing.
How to Find Commercial Property Debt Info
Property debt research requires a range of search criteria and building information to be accurate. Not only is it important to note the date of last sale, the lender information, mortgage origination dates and the current owner, in order for your property debt research to be accurate you must know how to properly source this information. Reonomy allows you to search the property debt under these criteria all on one platform.
How to Find Refinance Opportunities
If you are searching for refinance opportunities, searching Reonomy can help you source your next client. Reonomy lets you search 9 million commercial balance sheet loans via maturity date, origination date & lender to uncover refinance opportunities. This helps you to identify properties that show indicators of properties needing to refinance soon. Reonomy then provides names, emails and phone numbers for the property owners, allowing debt professionals to act on these opportunities. With this owner info provided, you can convert these into opportunities. Navigate refinance opportunities through analyzing property sales history and property sales records, which are easily filtered for and appear in every property details page in app.
Property Lien Search
Before investing in a property, conduct a property lien search to determine if the state or federal tax collection agencies have placed a lien on a property. A lien indicates an owner might owe back taxes on a property. Contact the county clerk’s office where the property is located to inquire about state or federal tax liens. You can provide the name of the property owner that you sourced from the Reonomy platform in order to request the information about the tax lien from the government.
How to Identify a Distressed Property
A distressed property is an under-performing asset that provides a challenge to the owner either financially, physically run down or legal distress. Identifying a distressed property can work to your advantage, as most of the issues can be turned into advantages. To identify a distressed property, you can use online listing tools, or you can search off market for a distressed asset. Reonomy provides a range of data points that can indicate distress. Identify a distressed property through contacts or by looking at mortgage amount in a tool like Reonomy. An example of this is if you determine a mortgage amount is much too high for a property, producing a negative cash flow, it may help to identify a distressed property. Or, utilize the lender search filter to search by pre-foreclosure lenders.
How to Find Commercial Mortgage History
Commercial mortgage history can be accessed by a few different means. Not only can you identify specific properties of interest and find the debt history information for the property itself, but you also have the option to search by debt history criteria. Dive deep into loan information and the history on off-market properties of interest to you. Identify properties under a particular lender and filter searches by loans providers that you have the ability to beat.
Commercial Real Estate Mortgage Origination
Search by origination dates to identify properties coming to term on loans. FIlter properties within a specific search area by mortgage origination. Use your knowledge of asset type and commercial real estate financing to inform your debt focused searches and filter for properties that offer potential deal making opportunities, or can be added to the list of potential owners to reach out to in order to broker a new mortgage or debt deal.
Commercial Real Estate Lenders
Commercial property lenders search Reonomy with specific search filters. Not only can you identify the last known lender behind a property, but you can use mortgage information and past loan data to inform how you approach a new deal. Uncover property owner portfolios and target properties based on a combination of loan and ownership data.
Reonomy Filters to Identify Debt Opportunities
Reonomy filters that facilitate uncovering debt opportunities include the following:
Search by Origination Date
FIlter your property search by origination date. Identify properties by date of last mortgage renewal. Use the filter to identify properties that might be coming to term on loans. Filter any specific search by target dates of origination. Use your knowledge of potential loan changes based on origination date to inform your search for upcoming loans on Reonomy.
Search by Maturity Date
Filter commercial real estate searches by maturity date. Inform commercial real estate loans Search for properties with an upcoming maturity date. Export lists of property details and relevant contact information. Systematically approach owners for deals or with potential loan changes at opportune times.
Search by Loan Amount
Search by loan amount. Filter properties that have a certain amount borrowed from loans. Incorporate loan information into search requirements for a potential off-market property deal. Search the off-market properties for deals within a certain range of debt.
Search by Lender
Easily search by lender information. If there is a particular lender you know of that makes a specific type of deal, search based on that lender. Leverage your knowledge of commercial lenders to inform conversations with owners.
Commercial Loan Types
There are a mixture of loan types from traditional, fixed-rate loans to bridge loans to mezzanine financing. Read more about commercial loan types in our post here.
Commercial property loans, or a commercial mortgage, is an essential planning step as an investor. What type of loan is appropriate, calculating the amount of the commercial loans, finding a commercial lender, and understanding the risk on your loan are all essential to planning an investment, whether as an individual investor or a company. While Lenders and Debt brokers likely already know what would be appropriate, understanding risk and potential for commercial real estate loans is an important step to take.
Here is a quick overview of some commercial loan types:
- SBA; There are two types of SBA loans that are generally of interest to commercial real estate investors: SBA 7(a) loans and SBA 504 loans. Both target new and existing businesses looking to purchase or refinance owner-occupied commercial real estate.
- Mezzanine Financing; Mezzanine financing is often used to fill the “middle” of a capital stack. It can be structured in a number of ways, including both debt and equity. For instance, it can take the form of junior debt – such as a second mortgage on the property. It can also be structured as preferred equity, convertible debt or participating debt.
- Hard Money Loans; Hard money loans are an alternative form of capital, provided outside of traditional lending channels, either by individuals or companies. Hard money loans are secured by commercial real estate as collateral.
- Commercial Bridge Loans; A commercial bridge loan is a source of short-term capital that is often used for debt service until an owner improves, refinances, leases, sells or otherwise completes a property transaction.
- Traditional Fixed-Rate mortgage; Most real estate investors purchase property using traditional, fixed-rate mortgages. These are similar to the types of loans you’d get when purchasing a home. Lenders typically require a 25% down payment (minimum) in exchange for a fixed-rate mortgage ranging from 7 to 30 years.
- CMBS loans; Commercial mortgage-backed security (CMBS) loans are a type of popular commercial real estate loan secured by a first-position mortgage for a commercial real estate property. They are offered by conduit lenders, as well as investment and commercial banks.