The commercial real estate market has been hit. Normally, such a decline would not pose a threat to the financial system, but the current situation could change that. The Federal Reserve Board already mentioned financial institutions' exposure to commercial real estate debt in its May Financial Stability Report. A Politico.com report from that time also discussed the impact of this exposure on banks' portfolios, especially in light of interest rate increases over the past year. When financial institutions find themselves in such distress, it creates the conditions for banks' behavioral risk to increase significantly. Another commercial building available for lease…
Author: Private Lending Agent
Now, if season 1 of The Flipping El Moussas wasn't enough to prove that Tarek and Heather are the ultimate home-flipping power couple, the real estate results from season 2 might convince HGTV fans. Season 2 of the hit show won't air until later this year, but while we wait for the first episode to premiere, the duo has been generously sharing highlights from the project. The latest news is that another property flipped by the El Moussas in the upcoming season sold within a week. In the caption of his Instagram Reels, Tarek called out the haters (we know,…
The past few years haven't been easy for the commercial real estate industry. Many businesses have recently been downsizing their offices and exiting larger leases. At the same time, building owners are facing rising interest rates on their mortgages. These pressures are not just a problem for owners of office buildings and other commercial real estate: They are also a concern for lenders with large amounts of commercial real estate debt on their balance sheets. Commercial real estate loans don't work exactly the same way as residential mortgages: Mortgage interest rates are typically fixed by the borrower for 30 years,…
Homebuilders, developers and investors can now access a newly formed comprehensive suite of loan products through private direct lender Anchor Loans. The California-based company announced the launch of a new Third Party Originator (TPO) channel that will serve brokers, banks, private and non-QM lenders, and other referral partners who work directly with these parties. Accelerating the company's growth by expanding channels embodies the vision of Anchor Loans' new CEO, Rayman Masouda, who took over last year. “The launch of Anchor Loan's new TPO channel marks a major step forward for our company and further supports our ability to expand our…
Anchor Loan, a California-based home improvement and resale lender, has launched a third-party originator (TPO) channel to serve mortgage brokers, banks, private and non-qualified mortgage (non-QM) lenders and other referral partners who serve homebuilders, developers and investors. Anchor Loans' TPO channel will offer residential commercial loan products, including bridge loans, remodel-and-flip loans, ground-up construction loans and rental investor loans with debt service ratios (DSCRs), the company announced. Co-Chief Revenue Officer Tim Landwehr led the launch of the TPO channel. “The U.S. housing market desperately needs millions more move-in ready homes, yet community banks and private lenders are cutting back on…
Downward angle icon Downward angle icon. Getty Images Delinquency rates for loans secured by office properties jumped to 6.5% in the fourth quarter, according to the MBA survey. Office loans led the way in delinquency rates for commercial real estate loans tracked in the survey. “Many properties and loans still face high interest rates, uncertainty about property values and, for some properties, changing fundamentals.” The office market continues to be plagued by financial difficulties, leading to rising delinquency rates on commercial real estate loans.Delinquency rates on loans secured by office properties jumped to 6.5% of the balance at the end…
Did you know? For more than 20 years, the Department of Commerce's Office of Neighborhood Economic Development has invested in commercial real estate development projects that provide vital goods and services to residents in neighborhoods throughout Philadelphia. Our next funding round is now open. Don't miss this opportunity to address the coordinated disinvestment of neighborhoods through funds dedicated to real estate development activities aligned with the needs of the surrounding areas. Commercial real estate grants help nonprofits, including community development corporations, increase their financial capacity and create economic opportunities that revitalize the communities they serve. Nonprofit organizations can apply for…
The new private market bond fund offering will be available to investors from January 18th.Real Estate Debt II LP 2024 is a diversified debt fund with approximately $100 million in active loans. The primary investment objective is to preserve capital while generating cash flow for investors.RD Advisors' strategy is to selectively invest in debt with conservative loan-to-value ratios, undergoing a rigorous borrower screening process to mitigate risk. The fund manager will focus on short-term debt with an average maturity of around one year.The average loan size in RD's funds is approximately $1 million, with loan amounts ranging from $200,000 to…
A new report from USI Insurance Services predicts that commercial property insurance premiums are “expected to increase” in 2024, but not at the same pace as in 2023. “Our forecasts include rate increases of 5% to 15% for non-catastrophe properties with minimal loss history and good risk quality, 15% to 30% or more for properties exposed to catastrophe risks with minimal loss history and good risk quality, and 15% to 30% or more for risks with poor loss history or poor risk quality,” the company's 2024 Commercial Property and Casualty Insurance Market Outlook states. The report, which shares forecasting insights…
jessica.kirsh/Shutterstock Key Takeaways En-bloc mortgages help streamline the process of purchasing multiple properties at once. En-bloc mortgages are often used by experienced real estate investors and developers in both the commercial and residential real estate sectors. En-bloc mortgages can require larger down payments, more closing costs, and balloon payments. If you are financing several properties at once, a lump sum mortgage is a great way to cut costs and eliminate paperwork. This type of loan isn't suitable for the average homeowner or first-time real estate investor, but it can be a useful tool for seasoned investors and developers of residential…