Apartment Construction Market Shows Signs of Improvement

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Commercial Lending Report

Apartment Demand UApartment Absorbtion vs. Employment Graphp, Despite Unemployment


Even with uncertain economic indicators and slow hiring, rental housing demands are increasing.  Conditions remain favorable for multifamily markets across the nation. The demographic trends indicate high levels of immigration, the surge in echo boomers forming their own households, a further shift away from homeownership, and the growing diversity in household composition support continued demand for rental housing.

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The Waiting is the Hardest Part

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You are probably wondering what the title of this article has to do with the business of Private Lending for Commercial Real Estate. I was listening to the Tom Petty song and thought about the important attributes of commercial real estate brokers. In our business, success comes from being patient and understanding the timing of the process.

Patience

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The Lure of Hard Money

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One of my favorite movies is Easy Money with Rodney Dangerfield and Joe Pesci.

 Rodney’s character made a deal to give up all of his vices to inherit his mother-in-law’s fortune. It turned out to be harder than he imagined.

There is nothing “easy” about obtaining a Hard Money loan from a private lender. It is a proposition based on risk. The lender assumes the risk of repayment of a highly leveraged loan, the borrower assumes risk of paying up-front fees to someone who will not perform, and the brokers assume the risk of getting squeezed out of the deal. Hard money fees can be as high as 10 points with interest rates above 12% and upwards of 20%.

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The Art of Writing an Executive Summary for Private Lending

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I usually start my blogs out with something amusing to get the readers’ attention. Free Strips of Paper

This time I thought the picture makes a great point. Every business plan is good for something – then there’s that whole perceived value thing.  This article will give some tips to creating an executive summary targeted to private lenders for commercial real estate.

Personalize Each Submission

Investors looking for funding or joint ventures should tailor their documents to match the recipient’s interest if they wish to be taken seriously. Continue reading

Investing in Multifamily Real Estate – Where’s the Beef?

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Where's the Beef?Is there money to be made in this area of real estate? Absolutely! To succeed you need what I like to call the 3 C’s and some B’s. Capital, Credibility, and Crystal Ball(s).

Capital

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Specifics of commercial mortgages from private lenders

Commercial real estates are those properties that are secured for commercial or business purposes. A mortgage for a commercial property is no different from a residential mortgage. One can take out a commercial mortgage from institutions like banks or credit unions, or even from private lenders. Read along to know about the specifics of private mortgages, for commercial real estate.

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