Author: Lance Langenhoven

In many European countries, signing a purchase agreement for a property must be accompanied by a 10% cash deposit. If you back out for any reason, you lose that money.

What?!!! Yes — that’s how it works in several markets.

While not every country operates this way, the U.S. commercial real estate process is refreshingly different:

• You sign a purchase agreement
• You place a much smaller Earnest Money (EM) deposit, typically around 1%
• This deposit is held in escrow by a neutral title company, not paid to the seller
• You’re usually granted a 30-day Feasibility Period (longer for vacant land), during which you can walk away
• If you terminate the deal during this period, you typically receive most or all of your deposit back
• Some states (like Texas) allow the seller to keep a small portion, often just 1% of the EM

This structure significantly reduces risk for the buyer, allowing you to fully evaluate the property before committing.

Who You Can Hire During the Feasibility Period:

• Building Inspector – Checks code compliance and identifies major issues
• HVAC Inspector – Tests heating/cooling systems and recommends repairs
• Roof Inspector – Assesses the condition and identifies leaks
• General Contractor – Estimates renovation or build-out costs
• Drone Photographer – Great for large sites or remote plots
• Civil Engineer / Architect – Ideal for land purchases to advise on zoning, design, drainage, fire safety, etc.

These inspections cost money, but compared to your total investment, it’s a small price to pay for confidence and clarity.

If you decide not to proceed, you can cancel before the Feasibility Period ends, recover your Earnest Money, and only be out the inspection costs.

Why U.S. CRE Makes Sense

This process makes investing in U.S. commercial real estate a comfortable, low-risk decision for experienced investors. You get time to assess the deal thoroughly, and you’re not locked in financially until much later.

Because of these protections, you can also move fast on a good deal. If something promising hits the market, “paper” it fast — sign the contract, secure your place, and then use the next 30 days to decide if it truly fits your strategy.

In contrast, in markets where 10% down is immediately non-refundable, such flexibility is unthinkable.

This is exactly why I love investing in U.S. commercial property.

Let’s talk about your next deal — contact me today.

Lance Langenhoven
Head of Commercial Lending
[email protected]

You’ve probably heard the saying:

“Developers or investors never have any cash.”

Why? Because their capital is usually already tied up in other commercial deals.

So what happens when a great new deal suddenly pops up — maybe the exact kind of opportunity you’ve waited five years for — and you’ve only got 50% or less of the down payment on hand?

Do you miss out?

Not necessarily.

Enter: Owner Financing

In the U.S., owner (or seller) financing is a common strategy that allows deals like this to happen — especially when buyers are tight on cash but the fundamentals of the deal are strong.

Here’s how it works:

Example Scenario

Purchase Price: $2,000,000
Typical Bank Loan (80%): $1,600,000
Required Down Payment (20%): $400,000
Cash Available: $100,000
Shortfall: $300,000

Deal Structure Using Seller Financing

Bank Loan: $1,600,000 (interest-only for 18 months)
Seller Finance: $300,000 (interest-only for 18 months)
Buyer Cash: $100,000

This structure gives you control of the asset without needing the full 20% upfront.

You position the deal with an 18-month interest-only term to give you time to improve the property and raise rents. After 18 months, the bank loan converts to a fully amortizing loan, and the seller financing is paid off.

What Happens Next

You upgrade the property, increase rents, fill vacancies — and within 18 months, the NOI (Net Operating Income) increases enough to justify a new valuation of $2.4M.

You refinance:

New Loan (80% of $2.4M): $1,920,000

Pay off:

• Initial bank loan: $1,600,000
• Seller loan: $300,000

Leftover: $20,000 in cash back to you at closing.

You’ve executed a full turnaround without partners.

You controlled the asset with just $100K.

The seller helped you get the deal done.

Why It Works

This structure is a win-win.

Sellers are often willing to help bridge the gap — especially if the alternative is a lower sale price or no sale at all. And for buyers, it’s a way to move fast on a rare opportunity without giving up control or equity.

So next time you come across that deal you’ve been waiting for, and you’re short on cash — remember: you can still make it happen.

Let’s talk about your next deal.

Lance Langenhoven
Head of Commercial Lending
[email protected]

Some investors won’t move forward on a deal if the cap rate is too low. In some cases, they can’t even calculate a cap rate because there’s no income yet. A good example of that is buying vacant land for a future development.

Personally, I prefer to invest in deals where the IRR, or Internal Rate of Return, shows a potential return of at least 20% on an all-cash basis. If it’s a development project, I’m aiming for 30%. Even though I usually use financing, I always start with the all-cash IRR. It’s a reality check.

It’s really easy to get pulled into a deal just because the IRR looks great when financing is included. But the risk can be much higher than it seems, and if things don’t go as planned, you could end up dealing with a foreclosure.

So here’s how I approach it. If the all-cash IRR looks solid, I’ll then run a second IRR analysis using financing. That version will naturally show a higher return, but I already know the deal works without needing debt to make it pencil out.

Now you might be thinking: how is a strong IRR possible if the cap rate is super low, or even zero, on day one?

Here’s the thing. Cap rate is just a snapshot of the property’s income at the time you buy it. It can’t see into the future. It doesn’t know what you plan to do with the property. Think of it like a still photo taken on closing day.

IRR, on the other hand, is like a video. It starts the day you close and continues through the full hold period, typically five years. It sees everything you’re planning to do.

For example, maybe you’re buying an apartment building that’s only 50% occupied. The IRR sees your renovation plan. It sees you increasing rents by 25% once the upgrades are done. It sees your improved management pushing occupancy to 95% within a year. And it sees continued rent growth year after year.

Eventually, the video gets to the point where you sell the property, now in excellent condition and in a highly desirable location—say, near the beach in California. Thanks to all the improvements, you’re able to sell at a strong price with a final cap rate of 5%. That’s why the IRR looks attractive, even though the cap rate at purchase didn’t.

Another thing to remember is that an IRR calculation always includes an exit event to complete the picture, even if you’re not planning to sell. A lot of investors refinance instead, pull some equity out, and roll it into the next deal.

So next time you’re evaluating a commercial property, don’t get discouraged if the cap rate looks weak. Focus on your business plan. Understand the upside. And work with someone who can help you run the IRR numbers correctly.

By the way, we love working with foreign nationals investing in U.S. commercial real estate. Not only can we help with financing, we’re active investors and developers ourselves.

Contact me today and let’s talk about your next deal.

Lance Langenhoven

Head of Commercial Lending

[email protected]

If you’re planning to invest in commercial real estate in the USA, keeping a close eye on the news is absolutely essential.

Market dynamics change quickly—whether it’s interest rate shifts, zoning changes, new developments, or large acquisitions in your target area. Being plugged into the right news sources can give you an edge and help you make smarter, faster decisions.

Here Are Some Top Commercial Real Estate News Sources:

A mix of free and paid options, so you can choose what fits best:

• Bisnow.com — Free with a simple email registration
• GlobeSt.com — Free with email registration
• CommercialSearch.com — Free, no registration needed
• ConnectCRE.com — Appears to be free
• BizJournals.com — Local business news by city/region, subscription at ~$25/year
• TheRealDeal.com — Subscription at ~$52/year, strong coverage of NYC, LA, and other major markets
• CommercialObserver.com — Premium subscription at ~$299.88/year

Some of these platforms cover national trends, while others allow you to zoom in on specific cities or regions, which is especially valuable if you’re targeting a particular market.

Why This Matters (Especially for Foreign Investors)

If you’re a foreign national investing in U.S. commercial real estate, staying on top of local market news is even more critical. These platforms help you stay informed about:

• Local developments
• Investment opportunities
• Legal and regulatory changes
• Major tenant or landlord activity
• Shifts in cap rates, rents, and valuations

Knowing what’s happening in the market—before others do—can help you move quickly on a great deal or avoid a potential pitfall.

We love working with foreign nationals investing in U.S. commercial real estate, helping them secure the financing they need to succeed. We’re not just lenders—we’re active investors and developers too, so we understand what it takes to navigate the U.S. market.

Contact us and let’s discuss your next deal.

Lance Langenhoven

Head of Commercial Lending

[email protected]

Bridge financing, as the name suggests, is designed to get you from where you are now to where you need to be.

This type of financing helps investors close commercial real estate deals quickly—especially when traditional bank loans are too slow or simply unavailable. You’ll also hear it referred to as hard money lending.

Why Use Bridge Financing?

Bridge loans are ideal for deals that need speed or flexibility—like value-add or turnaround projects. Because banks tend to be conservative, they often won’t lend on properties that are underperforming or need major improvements. That’s where bridge lenders step in.

These lenders are willing to take on more risk in exchange for a higher return. In other words, they’ll fund deals that banks won’t touch—because they know the investor is planning to improve the asset and boost its value.

What’s the Catch?

Since bridge loans come with higher risk, they also come with higher interest rates—typically 4 to 5 basis points (or more) above a conventional bank loan. But the upside? Most bridge lenders offer interest-only payments, which can help keep your monthly cash flow under control during the renovation or lease-up period.

Real-World Example

Let’s say you’re trying to buy a commercial property that’s only 60% occupied. You approach a traditional bank for a loan, but they reject the deal—it’s too risky, and they’re not confident in your experience as a sponsor.

But a bridge lender sees the opportunity. They’re able to close fast, helping you beat out competing offers. You lock in a 24-month bridge loan with interest-only payments.

You move quickly to renovate the property. Once it’s upgraded, you raise rents and boost occupancy. Now the property looks much more attractive on paper—and traditional lenders take notice.

After 12 to 24 months, you refinance into a long-term conventional loan with a much lower interest rate and 20-year amortization.

If the property’s value has increased significantly, you may even be able to pull cash out during the refinance—giving you capital to invest in your next deal.

The Bottom Line

Bridge financing is a powerful tool for investors who:

• Need to close fast
• Are acquiring properties that require repositioning
• Can’t qualify for bank financing—yet
• Plan to refinance once the property stabilizes

Used wisely, it can be the launchpad to your next big project. Just be sure to factor in the higher interest rates and have a clear exit strategy in place.

We love working with foreign nationals investing in U.S. commercial real estate, helping them secure the financing they need to make deals happen. And since we’re not just lenders—we’re investors and developers too—we understand the challenges you’re facing.

Give us a call and let’s discuss your next deal.

Lance Langenhoven

Head of Commercial Lending

[email protected]

If you’re planning to invest in commercial real estate in the USA, understanding the Capital Stack is essential. It’s one of the most important concepts in real estate finance—and knowing how it works can help you close more deals, make smarter decisions, and ultimately protect your investment.

Let’s break it down.

What Is the Capital Stack?

The Capital Stack refers to the different layers of financing that make up a real estate deal. Each layer comes with its own risk, reward, and priority when it comes to how profits (or losses) are distributed.

From the top (least risky) to the bottom (most risky), the capital stack typically looks like this:

1. Senior Loan
2. Mezzanine Debt
3. Preferred Equity
4. Common Equity

Here’s how each layer works:

1. Senior Loan (Least Risk, Lowest Return)

This is typically a bank loan and has the highest priority in the capital stack. That means the lender gets paid first. Because it’s the most secure position, it usually comes with the lowest interest rate.

2. Mezzanine Debt

This comes after the senior loan in priority and is typically provided by non-bank lenders. It carries more risk than the senior loan, so it comes with a higher interest rate. Mezzanine lenders usually have the right to take over the senior loan if payments are missed to protect their position.

3. Preferred Equity

These are investors who put in capital but don’t have control over operations. They get paid after the debt is serviced, but before common equity holders. Because they’re taking more risk, they expect a higher return—often 10% or more.

4. Common Equity (Most Risk, Highest Potential Reward)

This is where you, the sponsor or active investor, typically sit. You’re the last to get paid—but if the deal performs well, you get the biggest upside. You’re also the first to take a hit if things go sideways.

Real-World Example

Let’s say you’re doing a $10 million deal.

• A bank offers you 50% in a Senior Loan ($5M)
• A private lender offers 20% in Mezzanine Debt ($2M)
• You raise another 20% from friends, family, or investors as Preferred Equity ($2M)
• You put in the final 10% as Common Equity ($1M)

Now the capital stack is complete, and you’ve got the funds to close.

But here’s the key: the deal has to perform well enough to cover everyone lower in the stack. That means paying the debt, preferred returns, and then having enough profit left for you as the common equity holder.

When Is This Structure Used?

A layered capital stack is most common in value-add or turnaround deals—situations where the property needs work, but you believe you can increase its value significantly.

For example:

You purchase a property with low occupancy, invest in renovations and better management, and increase occupancy to 90%+ over two years. Then, you refinance the property at its new, higher value—often at lower interest rates.

In some cases, you may be able to refinance for more than the original capital stack, letting you cash out some equity to reinvest into your next deal.

Important Reminder

Be careful not to over-leverage your deal. Too much debt might make your deal look better on paper, but it adds risk. If things don’t go perfectly, you could end up in default—or worse, lose the property entirely.

Want to Learn More?

Check out this in-depth guide to the capital stack:
👉 Everything You Need to Know About the Capital Stack

We love working with foreign nationals investing in U.S. commercial real estate—and helping them get the financing they need to succeed. We’re not just lenders—we’re investors and developers ourselves, so we understand what it takes to make a deal work.

Give us a call and let’s talk about your next deal.

Lance Langenhoven

Head of Commercial Lending

[email protected]