In this episode of CRE Explained, Alex and Lily wrap up Chapter 2 by exploring Sections 2.2.10 and 2.2.11, covering how to solve for the number of payments (N) and how the time value of money applies to mortgages. They explain how investors can determine loan repayment periods, compare financing options, and understand the long-term costs of borrowing. The episode also introduces the Outstanding Loan Balance (OLB) and breaks down three common mortgage structures: fully amortizing loans, partially amortizing loans with balloon payments, and interest-only loans. Through practical commercial real estate examples, Alex and Lily demonstrate how these concepts influence investment decisions, cash flow, and financing strategies. This episode concludes the Chapter 2 series by connecting the fundamental principles of present value and annuities to real-world mortgage financing. This episode was developed and produced by Nicole Jordan. Audio generated using Wondercraft AI.

© 2026 CRE Explained Podcast Team.
Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen.
Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen.
Reference Material: Commercial Real Estate Resources | CREBook.net