Author: Lending Agent
In recent years, a growing number of state legislators have introduced and shown support for bills that aim to limit the number of real estate properties that can be owned by certain entities, a concept known as unit count control. This unit count control has garnered significant attention in the real estate community. One of the most prominent of these proposed bills is the End Hedge Fund Control of American Homes Act of 2023. Originally introduced by U.S. Sen. Jeff Merkley (Oregon) and U.S. Rep. Adam Smith (Washington), it has since been cosponsored by legislators in Minnesota, Georgia, and California. The…
Creative financing is any method of unconventional financing that allows real estate investors to purchase properties without traditional loans or using large amounts of your own money. Creative financing might include options such as seller financing, wraparound mortgages, or crowdfunding. And you can use these to purchase various types of property, including residential and commercial investments. Why would real estate investors want to use creative finance options rather than traditional mortgage loans to purchase property? There are plenty of benefits, including flexibility in structuring deals, the potential for higher returns on investment, and accessing more opportunities in a competitive market. It…
Over the past few years, several major metropolitan areas, including Portland, Oregon, and St. Paul, Minnesota, have introduced rent control policies. Some states have also enacted rent control regulations. The Biden administration has also proposed a nationwide cap on annual rental rate increases. Rent control legislation limits the amount landlords can charge for rent on their properties. Some rules include strict guidelines on the amount of rent landlords can charge, while other policies limit rental rate increases to changes in inflation. Controlled rents aim to keep rental rates affordable for low- and middle-income households. While that may be admirable, it…
When you’re shopping for a loan, it’s tempting to go with the lender offering the lowest interest rate. However, choosing the right loan is far more complex, especially when you have quotes from different types of lenders. Each of these lenders may offer different terms, including varying loan lengths, interest rates, origination fees, and other costs.The challenge for investors is to convert these different quotes into an “apples-to-apples” comparison so you can make the best choice for your business. This requires a quantitative approach that considers more than just the interest rate. To make a sound decision, you’ll need to…
The rapid advancement of artificial intelligence (AI) and automation is reshaping the job market in profound ways. As these technologies continue to quickly evolve, a disparity in the labor market will emerge, particularly between blue-collar and white-collar workers. The implications of this shift are significant, especially for real estate investors who are looking to capitalize on emerging economic trends.At the heart of this transformation is a key thesis: new technology is deflationary. AI will be particularly deflationary in the context of white collar labor. This is because AI increases the productivity of white collar workers. Assuming that the Federal Reserve’s…
By dividing the NOI by the cap rate, you can determine a reasonable estimate of the property’s value, helping investors make informed decisions about buying or selling.What Does the Cap Rate Tell You?The capitalization rate provides a quick way to assess the profitability of a property. A higher cap rate typically indicates a higher potential return, but it often comes with higher risk. Conversely, a lower cap rate suggests a lower return but possibly a safer investment.Market VariabilityCapitalization rates can vary significantly depending on the market and property type. In more stable, high-demand markets like major metropolitan areas, cap rates…
In the competitive landscape of real estate investing, success is not solely measured by the products or services a company offers but also by the strength and cohesion of its team. Building a team that not only functions well together but also remains loyal and productive requires a deeper understanding of each team member’s unique behavioral traits, preferences, and compatibility within specific roles.Behavioral assessment tools such as the Culture Index and the Predictive Index are designed to provide comprehensive insights into team dynamics and individual behaviors. Here’s how it can benefit your business:What are Behavioral Assessments?Behavioral assessments provide comprehensive insights…
Now is the time to start paying attention to multifamily properties when it comes to real estate investing. Why? Many multifamily properties will start hitting the market at discounted prices. This is because the short-term debt utilized in 2020 is starting to run out. And the projections used when buying these properties are not keeping up with today’s calculations.Setting the Scene — 2020In 2020, debt was cheap to borrow because interest rates were at historic lows. The prevailing theory was, “Every multifamily deal is somehow a value add.” Buyers believed that rent increases could justify lower cap rates and higher…
Hard money loans are short-term lending agreements backed by the collateral of an asset, like a home. They differ from other kinds of real estate loans in their length and approval process. Importantly, investors can be approved for hard money loans regardless of their credit profile. You just need an asset that’s worth enough to act as collateral for the desired loan amount. If you have that, you should get approved.Read on to learn more about the terms of these agreements and how to decide if they’re right for you.Technical Aspects of Hard Money LoansQualifying for a hard money loan is…
The introduction of artificial intelligence (AI) into the Proptech space is revolutionizing real estate investing. Maximize Market Research reports that the AI in Real Estate market, valued at 220.68 billion in 2023, is expected to grow significantly to 1803.45 billion by 2030. AI technology refers to any software, computer, or algorithm that automates human tasks. Leveraging AI data analytics supports real estate investors looking to make data-driven decisions to enhance efficiency and profitability at every stage of the real estate investment process. Why Is Artificial Intelligence Beneficial? AI offers two main benefits for real estate investors: Enhanced operational excellence: AI automates tasks, optimizing processes…