The Key to Debt Management for Real Estate Owners

Debt is often the best way, and sometimes the only way, to finance your business as you acquire more properties.

Taking on debt often enables expansion. It is less risky than equity, and it even helps drive the economy. Leveraging debt can enable your business to grow and thrive. But while the benefits of loans are real, it’s also important that you have a good understanding of your debt in order to leverage it for success.

Whether you own one commercial property or dozens of them, debt management is something you need to put effort into when optimizing your business practices. The more mortgage loans you acquire over time, the more overwhelming it can get — so take care not to fall behind on debt management.

Know Your Debt Status at a Moment’s Notice

How much do you owe on each of your properties? When is your next bill due? How much principal and interest are you paying? Or, how is your debt distributed across lenders? Exactly how much equity have you built? What’s your total debt — and how about your total loan-to-cost ratio? If you don’t know the answers to these questions and you can’t easily access that information, your debt management system may need an overhaul.

Give Lenders Confidence in Your Business!

Lenders need to be confident that you can repay them. They need to know your finances are in good shape: otherwise, they won’t be able to offer you a good rate. If they have doubts, they might not even approve you for a loan. So the more confidence you can give them, the better! This means providing them with thorough, up-to-date information about your finances and the loans you’re currently paying off.

The STRATAFOLIO Solution to Debt Management

At STRATAFOLIO, we understand the intricacies of running a commercial real estate business. Managing your finances can get complicated. Keeping track of multiple loans is easier said than done, especially when you’re still using outdated methods like simple spreadsheets. That’s why we developed our one-of-a-kind Loan Dashboard to help you do the following with ease:

• Understand exactly how much debt you have outstanding with any single lender and how your debt is distributed across lenders (see images above).
• Isolate to a single lender, entity, or asset.
• Receive alerts for maturing loans so you have enough time to shop for the best rates.
• Update asset valuations based on market rates, appraisals, or cap rates
• Have a visual of all your loans in one spot in a customizable view.

The best part? All of your loan information is easy to keep up-to-date, and you can pull it up at a moment’s notice. If you have a meeting with a lender or you need to look up when a certain loan is maturing, you can do so quickly. Plus, STRATAFOLIO is designed for more than just debt management! See what it can do for your commercial real estate business by scheduling a demo today.

Thank you for your visit.

Originally published at https://stratafolio.com on June 15, 2020.