Can you do both commercial and residential real estate?

Yes. A real estate agent can sell any type of property, either commercial or residential. However, there is a lot of on-the-job experience that helps an agent be more skilled in selling commercial properties vs residential properties. Therefore, many clients prefer to hire an agent who specializes in one or the other.

What is senior debt in real estate?

Senior debt is money provided by a lender in return for a first position mortgage on the collateral property. It is considered “senior” because the lender is first in line to be repaid at all times. Senior debt is different from subordinated debt in the sense that the holder is in first position for repayment.

What type of property is commercial real estate?

Commercial real estate refers to properties used specifically for business or income-generating purposes. The four main classes of commercial real estate include: office space; industrial; multi-family rentals; and retail.

Who makes more money commercial or residential real estate agent?

The average commercial Realtor makes $85,000 annually versus $39,300 for residential Realtors, according to National Association of Realtors’ (NAR) surveys of its members.

Is senior debt long term?

Senior term debt is a loan with a priority repayment status in case of bankruptcy, and typically carries lower interest rates and lower risk. The term can be for several months or years, and the debt may carry a fixed or variable interest rate.

What are the two major property classifications in real estate?

Generally speaking, properties are classified as either Class A, Class B, or Class C properties. This is true across all real estate asset classes, regardless of whether you’re referring to office buildings, retail centers, apartment buildings, or industrial and warehouse facilities.

What is senior bank debt?

A senior bank loan is a debt financing obligation issued to a company by a bank or similar financial institution and then repackaged and sold to investors. The repackaged debt obligation consists of multiple loans. Senior bank loans hold legal claim to the borrower’s assets above all other debt obligations.