Loans, maturities and covenants for small owners

Commercial Real Estate Debt Management Software
for Owners of a Few Buildings

On a commercial property the loan, not the tenant, is usually what forces a decision: a maturity date, a rate reset or a covenant test. Here is what to track for each loan, a worked refinance example and how SealedFolio records it.

See the worked example See SealedFolio's two plans

Why commercial debt needs its own tracking

A home mortgage runs 30 years and nobody tests it. A commercial loan often runs 5 to 10 years with a balloon at the end, may reset its rate partway through, and carries covenants: a minimum debt service coverage ratio and a maximum loan to value. Miss one and the lender can sweep cash or call the loan.

Institutional debt platforms track hundreds of loans with covenant models and lender reporting. An owner with two or three loans needs the same dates and ratios kept current, next to the property's books.

What to record for every commercial loan

FieldWhy it mattersIn SealedFolio
Lender, original amount, start date, termGives the maturity or balloon dateStored per mortgage
Current balanceDrives LTV and the refinance amountStored; you update it from statements
Interest rate and monthly paymentAnnual debt service for DSCRStored per mortgage
EscrowTaxes and insurance paid through the lenderStored per mortgage
DSCR and LTVThe two usual covenantsShown per property on the SREO
Covenant thresholds and reset datesTells you how close you areNot modeled; keep them in the loan notes

Worked example: a flex building loan coming due

Diagram of the commercial real estate debt management example: a 980,000 dollar loan balance with DSCR 1.51 today, 1.39 after a 7% refinance and 1.16 if a tenant leaves
Flex building loan: refinance test. Diagram by SealedFolio.
  1. The loan. $1,200,000 borrowed 7 years ago at 4.25% on a 25-year amortization, with a balloon at year 10. The balance today is about $980,000 and the payment is about $6,500 a month, $78,000 a year.
  2. Today. NOI is $118,000, so DSCR is about 1.51. The building is worth $1,650,000, so LTV is about 59%.
  3. The refinance test. Refinancing $1,000,000 (the balance plus closing costs) at 7% on a new 25-year amortization costs about $84,800 a year. DSCR drops to about 1.39, still above a 1.25 covenant.
  4. The risk. If a tenant paying $20,000 a year leaves before the refinance, NOI falls to $98,000 and DSCR to about 1.16, below the covenant, so the lender would size the loan smaller. Renew that lease before applying.

Run the payment side with the mortgage calculator and the cash return after debt with the cash-on-cash return calculator.

Where SealedFolio fits

SealedFolio keeps each mortgage on its property with the fields above, and the schedule of real estate owned shows value, balance, NOI, LTV and DSCR for every property. Scenarios project NOI and cash flow under vacancy, rent growth and expense growth against the current debt service; they do not re-price the loan at a new rate, so run the refinance payment in the mortgage calculator. It does not connect to lenders, track covenant tests or send maturity alerts, so keep the covenant terms and dates in the loan notes and on your calendar.

The SREO and scenarios are on the Portfolio plan. For the rest of the commercial setup, see commercial real estate software without the 50-unit minimum, and for owners with several buildings, commercial real estate portfolio management software.

Every loan next to its property's books

SealedFolio Pro is $19 a month or $179 a year for up to 3 properties. Portfolio is $39 a month or $297 a year for unlimited properties. Both come with a 30-day money-back guarantee.

See SealedFolio pricing

Commercial real estate debt management software: frequently asked questions

What is commercial real estate debt management software?

Software that tracks each loan on a commercial property: lender, balance, rate, payment, maturity and the covenants the lender tests, usually DSCR and LTV, so the owner sees refinance and covenant risk before it arrives.

What should I track for each commercial loan?

Lender, original amount, current balance, interest rate, term, start date, monthly payment, escrow, maturity or balloon date, and the DSCR and LTV the loan requires.

How do I know if I am close to breaking a DSCR covenant?

Divide the property's NOI by its annual debt service and compare it with the covenant, often 1.20 or 1.25. Recalculate when NOI falls or the rate resets, not just at the annual lender review.

Does SealedFolio sync loan balances from my lender?

No. You enter the balance, rate and payment and update them from your statements. SealedFolio does not connect to lenders or model covenants automatically; it shows DSCR and LTV per property so you can compare them with your loan terms.