With interest rates rising over the past two years, it’s no wonder commercial real estate borrowers have been feeling a bit of a consternation lately. Banks and other lenders are also scaling back lending activity and tightening standards: In the second quarter of 2023, bank CRE loan origination volume fell 69% year over year, while investor-led lender origination volume fell 60%. If you’re planning on purchasing commercial real estate, knowledge is power when it comes to obtaining a loan and getting the best possible interest rate. This is especially true in today’s tough business environment. In this article, Commercial One…
Author: Private Lending Agent
Investing in commercial real estate can be a great opportunity to build wealth. As with all investments, profit potential is a major consideration when comparing different properties. How can you be sure that the money you invest today will generate healthy profits in the future? This is where net present value and internal rate of return come in. These measures estimate whether a potential investment will generate a profit or a loss. They also take into account the present value of the investment in today's dollars. Net present value (NPV) is the difference between the present value of expected cash…
For any construction project, choosing the right general contractor can mean the difference between a smooth, successful project and a stressful, substandard outcome. Choosing the right general contractor ensures that your construction project is executed with the utmost professionalism, from the first plans to the final bricklaying. Below is a detailed roadmap to help you make this important decision. Check all resources first Before we go into the details, it is important to make a comprehensive list of potential GCs. There are many reliable resources available to provide you with information and contact details for GCs. Associations such as Associated…
Kerkez / iStock.comHouse flipping is the process of buying houses with the intention of reselling them quickly — and at a healthy profit. Houses in areas with rising home values are ripe for flipping, especially if they can be bought at a steep discount and renovated to today’s tastes.Check Out: More Americans Can Afford To Buy a Home in These 20 CitiesReal Estate Agent: 6 Cities Where You Should Avoid Buying a Home This SummerIf you’d like to know the specifics of how to flip a house, start with these 28 rules of flipping houses that experts say you should…
Are you considering renovating your home for the first time? Or have you renovated your home in the past and made horrible mistakes? You'll want to know what other home renovators are doing and what they're not doing. Whether you’re looking to flip a house in Ventura, California, or Las Vegas, Nevada, this Redfin article offers valuable tips to save you time and money. From choosing the perfect location to selecting a reliable contractor to marketing your property, we’ve got you covered. AMR Image courtesy of Getty Images 1. Consider the location Choosing a location is one of the most…
Flipping houses can be a lucrative business, especially if you choose the right location.Handcrafted furniture company Joybird analyzed 11 real estate market factors across the U.S. to uncover the best places to maximize your return on investment from home flipping.The factors used were determined using data from Zillow, Redfin, the U.S. Bureau of Labor Statistics, and others, and included:Median home price, average price of homes in need of repairs, number of homes in need of repairs, median days on market, total return on investment from flipping a home, property tax rate, average cost of a kitchen remodel, average cost of…
The factors used were determined using data from Zillow, Redfin, the U.S. Bureau of Labor Statistics, and others, and included:Median home price, average price of homes in need of repairs, number of homes in need of repairs, median days on market, total return on investment from flipping a home, property tax rate, average cost of a kitchen remodel, average cost of a bathroom remodel, number of real estate agents, number of construction managers, number of construction workersFive of the top 10 states in Joyride's final rankings are located in the South, indicating this region of the U.S. is ideal for…
Arizona is currently experiencing significant growth, with many businesses and residents relocating to the state. This rapid growth is helping to reshape the economic landscape of the state. A developing trend as a result of this transformation is the growing demand for ground leases, a unique property agreement that offers flexibility and financial advantages for both landlords and tenants. The surge in businesses, residents, and investors seeking opportunities in Arizona has created a thriving market for ground leases, which are being utilized to facilitate development and manage the rapid growth the state is witnessing. Factors Contributing to the Business…
Buying distressed properties is a good way to secure better terms, but these types of properties often come with some terms that you need to be aware of. Typically, a distressed property is a home that has fallen into disrepair in some way, but the owner may also be in other ways distressed due to a failing financial situation. Sellers are motivated, so asking prices and expectations may be lower, but cheap doesn't mean it's a bargain. Here are three things you should know before diving into buying distressed real estate. Thorough investigation One of the golden rules when investing…
If you are a first-time home buyer, the Hometown Heroes program is for you. This program can help you realize your dream of buying a home for your family. If you don't have enough cash for a down payment or closing costs, now is your chance. Take advantage of this program. What can you get out of the Hometown Heroes program? Down payment and settlement cost assistance, which can be 5% of the first mortgage amount up to a maximum of $35,000 in assistance; Lower interest rates on FHA, VA, RD, Fannie Mae, or Freddie Mac first mortgages; Reduced upfront…