Learned a Few New Commercial Finance Terms This Week
Even though I have been working in commercial real estate finance for over 30 years, I still learn new terms and concepts all of the time. Here are a few new ones:
NPN - The acronym, "NPN", stands for for Non-Performing Notes.
DPO - The acronym, "DPO", stands for discounted pay-off. In recent weeks I have personally learned of a bank selling a $17 million performing loan for just $7.5 million. On another deal a group of banks are willing to sell $37 million of debt for just $8 million.
I love working on DPO deals (discounted pay off deals). Do you have a bank willing to accept a big haircut to get rid of a note? Please call me directly, George Blackburne III (the old man) on my cell at 574-360-2486 or email a deal to me to firstname.lastname@example.org. In the subject line, please type the words, "DPO Deal."
White Box Finish - This implies a finished unit that is missing only those items that the prospective owner or prospective tenant will choose, such as the type of counter-top, the carpeting, the color of cabinets, and for office or retail space, the location of the bathrooms and interior walls.