Two buildings can collect identical rent and support very different loans, because the lease decides who pays for the taxes, the insurance, the maintenance and the roof. Before anything else in a file, a lender works out which expenses actually reach the owner.
The structures
Gross leases leave operating costs with the landlord; modified gross splits them; triple net pushes taxes, insurance and maintenance to the tenant; absolute net leaves the tenant with structure and capital items too. Percentage rent adds a share of sales on top of a base.
Why it moves proceeds
Net operating income, not gross rent, services the debt. A gross lease at a headline rent can underwrite below a triple-net lease at a lower one.
Read the actual document
Expense stops, caps on recoveries, base-year resets and landlord obligations buried in the maintenance clause routinely change the real NOI by more than a rent negotiation would.
Our minimum loan is $200,000. We are a direct commercial lender working across the 43 states we serve, in business since 1998. We do not publish a rate for this product because the number depends on the file — call and we will quote the deal in front of us.
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