Single Asset Entity

What is Property Stabilization?

What is Property Stabilization?

Property stabilization or stabilized occupancy is a projected range of occupancy for rental property. In other words, this is the expected occupancy that the project will have after being on the open market for a certain time period. Stabilized occupancy can also refer to the level of occupancy a property needs in order to “break even,” meaning that the project’s monthly expenses are less than or equal to the monthly income it generates.

What is a Single-Asset Entity?

What is a Single-Asset Entity?

A single-asset entity is typically a limited liability company (LLC) that owns real estate but has no other assets. Single-asset entities, or SAEs, are designed to limit liability for both borrowers and lenders. They are especially helpful to lenders, because, if a borrower personally declares bankruptcy, but they own property via a single-asset entity, the property will not be involved in the bankruptcy.

What is a Bankruptcy Remote Entity?

What is a Bankruptcy Remote Entity?

Amortizing loans are loans in which part of each payment goes toward interest and part goes toward paying off the principal. In most cases, the the bulk of early monthly payments go toward interest, while the bulk of the later payments go toward the principal. HUD 223(f) loans are fully amortizing, which means that the loan’s principal will be fully paid off by the end of the loan’s term.