Commercial real estate offers excellent investment opportunities for both individuals and businesses. On the other hand, managing commercial property is no easy task. The day-to-day operations require skills in marketing, tenant relations and maintenance, as well as a thorough knowledge of leasing agreements, employee relations and regulations. Rather than navigating these complex issues on their own, many investors turn to an experienced property management company. Simply put, property management is when a third party oversees a commercial property on behalf of the owner. Many investors find that property management helps them control costs, increase profits, and maximize value. Property management…
Author: Private Lending Agent
California continues to lead the way in strengthening regulation of the commercial lending sector. Most recently, on October 13, 2023, California Governor Gavin Newsom signed Senate Bill 666 into law, prohibiting commercial lenders from charging “small businesses” certain fees for loans. The law goes into effect on January 1, 2024. In recent months, California has also finalized rules prohibiting unfair, deceptive, or fraudulent acts or practices related to commercial lending and imposing annual reporting requirements on certain commercial lenders. Commercial Lending Fee Limits The bill would limit or restrict the following fee categories: Fees for processing payments required by ACH…
Businesses operating out of commercial rental property in Florida (retail stores, offices, warehouses, industrial space, etc.) should be aware of upcoming changes that will impact their business operations. Effective December 1, 2023, the sales tax rate on commercial rental property will decrease from 5.5% to 4.5%. This article explains the new sales tax rate, how it applies to rent, and the compliance steps businesses need to take. Beginning December 1, 2023, all rental payments for commercial real estate in Florida will be subject to a reduced sales tax rate of 4.5%. This rate applies regardless of whether any prepayments were…
How big an impact will the US real estate refinancing wave have? The real estate mortgage market has seen two major changes over the past 18 months: a significant decline in property values and a corresponding change in the availability of loan financing. These changes have caused concern in parts of the real estate market where property values have fallen significantly and loans are approaching maturity. How big is the problem? At first glance, this problem seems very large. Of the US$2.77 trillion in loans in our research sample drawn from the MSCI US Mortgage Debt Intelligence database, approximately 81.5%…
Stay up to date with free updatesJust sign up for U.S. Bank's myFT Digest and get it delivered straight to your inbox.Delinquencies on commercial real estate loans at U.S. banks have reached their highest level in a decade as rising interest rates, economic uncertainty and an increase in remote work have increased pressure on building owners.The total value of delinquent loans, where owners have missed at least one payment on property they rented out to others, rose 30%, or $4 billion, to $17.7 billion in the three months to the end of September, according to industry research firm BankRegData, a…
The world of commercial real estate is vast and complex, full of opportunities and challenges. One of the most complicated transactions in this market is selling land to a commercial developer. For landowners, especially those new to the commercial real estate market, it can feel like navigating a maze. One wrong step can mean a missed opportunity or even a failed deal. Understanding each nuance is crucial for landowners who want to sell to a commercial developer. The process of selling land is multi-layered, involves numerous appraisals, negotiations and legal procedures and may seem overwhelming at first. However, with a…
New Western, which partners with investors in fix-up and flip properties, has transitioned its lending arm, Sherman Bridge, into its own marketplace to help owners find financing.The majority of fix-it-and-flip properties, or the fix-it-and-rent alternative, are purchased by what the industry calls “mom-and-pop” investors.But most deals are done all in cash: About 37.4% of its second-quarter sales involved some sort of financing, up from 34% in the first quarter, according to Atom Data Solutions.”The decline in cash resales in the second quarter came at a time when mortgage rates were declining slightly after a sharp increase in the prior year,”…
Share WASHINGTON, DC (November 7, 2023) — Commercial and multifamily mortgage lending was down 49% year over year in the third quarter of 2023 and down 7% from the second quarter of 2023, according to the Mortgage Bankers Association’s (MBA) quarterly Commercial and Multifamily Mortgage Lending Survey. “Borrowing secured by commercial real estate declined again in the third quarter,” said Jamie Woodwell, head of commercial real estate research at the MBA. “Borrowing and lending were down across all property types and funding sources compared to a year ago. However, compared to the second quarter of the year, transaction volumes were…
One of the foundations of the real estate industry is the constant pursuit of innovation to put together a seamless experience for buyers and sellers. A shining example of this is Real Estate Webmasters, a technology and consulting firm that recently established an industry benchmark by achieving the prestigious Gold Certification for two of its custom-built websites. These awards are not only a testament to Real Estate Webmasters' expertise, but also a promise of what's to come. Award-winning excellence Real Estate Webmasters' recent accomplishments have put the spotlight on the company's ability to create industry-leading custom real estate websites. The…
Koreatown: Hankey Investment Co.’s Kurve high-rise development. During the first half of the year multifamily properties in Southern California saw both vacancy and asking rents rise. Still, developers were active, with tens of thousands of units under construction in the region, according to a report from Northmarq. This Special Report talks to 12 multifamily experts, including both developers and brokers, about the state of L.A.’s multifamily market. Henry Manoucheri is the founder of Universe Holdings, a real estate investment, management and development company based in Century City, which he established in 1994 after a decade-long career as a multifamily investment…