How to access and use live commercial mortgage rates to calculate potential investment returns of a LoopNet property sales listing.
LoopNet is the largest commercial real estate listing website in the US by number of listings. They list properties for sale and for lease, which users can search and filter by location, asset type, cap rate, and more. The website boasts “more than 10 million monthly unique visitors and 20x the traffic of our closest competitor”.
When an investor browses LoopNet for potential properties to buy, they’ll be able to find multifamily properties, office buildings, industrial buildings, retail plazas, hotels, and more. The listing page will supply information about the property’s physical characteristics, like the square footage, type of construction, year built, and number of parking spaces. It will also usually provide financial information about the asset, like the property’s rent roll, income history, and expected expenses.
What the listing page does not tell an investor is what type of financing could be available. It’s not like browsing homes on Zillow, where there is a built-in mortgage calculator. Want to know how much equity would be required to buy the asset? How about an expected interest rate for a loan? Unfortunately, LoopNet doesn’t provide that type of information, and an investor will have to research elsewhere, then model numbers into a spreadsheet before determining if the property is worth pursuing further.
It can take hours to find that information and run the numbers.
The StackSource Browser Extension (currently in beta) provides real-time loan interest rates and the ability to calculate potential financial returns quickly, without leaving the listing page. Simply launch the extension, plug in the property’s high-level numbers from the listing page (the property’s income and a purchase price), and you’ll be able to select and model the property acquisition with your choice of loan terms.
Upon selecting a loan program type, you’ll then be presented with loan term assumptions based on current market rates. You can select an appropriate interest rate and LTV from the range that the market currently supports.
For other loan program types, like Freddie Mac Small Balance loans for stabilized multifamily assets, the extension automatically calculates a precise interest rate and maximum leverage that you can expect:
With the addition of LoopNet, the extension is now compatible with every major commercial property sales listing website, so it can be used to analyze and share the results of your investment calculations with other investors, from any website.
We still have a bunch of updates to make to this extension over time, which is why it is still considered a Beta launch, but with the addition of LoopNet support, it’s ready to use for investors and investment sales brokers across the country.
Install for free here:
We’d still love to receive feedback on the tool, or connect with real estate investors that want help analyzing deals or scrutinizing their financing assumptions. To get in contact with StackSource, email Hello@StackSource.com and you’ll hear back quickly from one of our real estate finance experts.
- An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the loan’s principal amount and the interest accrued. - As you continue to make monthly payments, the portion of your fixed payment that goes to interest is less and less and the portion that goes to reducing your loan principal is more and more. - There are two key differences between Residential and Commercial Real Estate (CRE) loan amortization schedules.