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. 💻 TRAINING & COURSES 💻 Enroll in the FREE Break Into CRE Real Estate Financial Modeling Crash Course here: https://www.breakintocre.com/free-crash-course Enroll in any Break Into CRE course here: https://breakintocre.com/courses/ Get access to all Break Into CRE courses, all models, and additional one-on-one support with a Break Into CRE Academy membership: https://breakintocre.com/the-academy **💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰 EquityMultiple: https://equitymultiple.4drrzr.net/c/2975738/751081/10943 Crowdstreet: https://crowdstreet.4cl7.net/c/2975738/592761/9753 RealtyMogul: https://realtymogul.pxf.io/c/2975738/1008102/13202 ** 📰 MY FAVORITE REAL ESTATE NEWSLETTER 📰 Thesis Driven (20% off a paid subscription): https://www.thesisdriven.com/breakintocre ** 🏬 RESIDENTIAL RENT DATA & ESTIMATES 🏬 RentCast: https://rentcast.io/?via=breakintocre 🕒 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. **AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account. Research and articles referenced in this video: https://mf.freddiemac.com/product/conventional