Contact Us Home Share/Bookmark

Frequently Asked Questions & Commercial Mortgage Definitions

At MSI Capital Group, we are pleased to answer any question that you may have.  We have addressed some of the most frequently asked questions from over the years.  Please feel free to call or email us if we can be of any further assistance.

Q.  What makes MSI Capital Group, Inc. different from its competitors and one of the best sources for securing commercial property financing?
A.  In addition to providing the most desired loan programs, we provide borrowers with many benefits, options and of course, a true mortgage banking relationship.  We want to close your loan and have you as a repeat borrower.  It's that simple!


Q.  What is the time frame?
A.  You can expect a response within 24 hours and we strive to close all loans in less than 45 days.


Q.  What fees and costs are involved.
A.  Fees and costs vary with each program.  We will provide the most competitive overall deal in the market.


Q.  What information do I need to supply to get a quote?
A.  Generally, we would need to receive a property description, income and expense data, a current rent roll (for multi-tenanted properties) and several property photos.


Q.  Do I need to send any money to get a quote?
A.  Never.  We will (without any obligation to you) immediately review the data and give you a quote.


Q.  Will you review a deal before we finalize a purchase contract?
A.  Absolutely!  Many times, borrowers will get our feedback to assist them in understanding a deal or to confirm the underwriting cash flow.  We want you to feel that you have a friend in the business that you can consistently rely upon.


Q.  What can I expect from start to finish?
A.  Quick responses, unbiased feedback, great benefits, competitive rates and a company that earns your business and trust.


Q. What is cap rate ?
A.  Cap rate is calculated by dividing the Net Operating Income ( NOI ) by the sales price.

First, Properties are valued primarily on their ability to produce income. 

Second, cap rates consider income only, it can be used to compare other alternative investments. Such as other real estate besides office, stocks, bonds, and business's.

Third, no two properties are exactly alike. Brokers and appraisers need a method to compare properties with different locations, physical condition, quality of construction and level of management. Cap rates are adjusted up or down depending on the level of risk of the property that it has in maintaining that future income stream.


Q. How do you determine cap rates ?
A. Cap rate is calculated by dividing the Net Operating Income ( NOI ) by the sales price.


Q. How do you calculate NOI ( Net Operating income ) ?
A
  Gross income generated by the property, minus all normal operating expenses excluding depreciation and loan payments, you get your NOI.


Q. How do you determine Sales price from NOI & Cap Rate ?
A.
Divide the NOI by the cap rate to reach the Sales Price


Q. What is included in Operating Expenses ?
A.
Property taxes, insurance , payroll, management fees, utilities, advertising, office expenses, lawn maintenance, snow removal, repairs, reserve fund for future & capital expenditures.


Q. Why do we use cap rates ?
A.
First, Properties are valued primarily on their ability to produce income, Second, cap rates consider income only, it can be used to compare other alternative investments. Such as other real estate besides office, stocks, bonds, and business's. Third, no two properties are exactly alike. Brokers and appraisers need a method to compare properties with different locations, physical condition, quality of construction and level of management. Cap rates are adjusted up or down depending on the level of risk of the property that it has in maintaining that future income stream.