Author: Lending Agent
When you first dive into real estate investing, you’ll come across two acronyms a lot: LTC and LTV. These are two crucial formulas that help you calculate your maximum loan amount. A Loan to Cost (LTC) ratio represents the amount of financing a lender will provide relative to the project’s cost. Loan to Value (LTV), on the other hand, compares your loan amount to the property’s value. Understanding both formulas is key to deciding if an investment is worthwhile. Let’s break down the difference between LTC and LTV so you know which formula to use as you evaluate your next investment.What…
The stock market is recently experiencing significant volatility. Wall Street concluded a turbulent week with the Nasdaq entering correction territory, raising fears of a potential recession. Major indices like the S&P 500 and Dow Jones also faced declines amid concerns over a weakening labor market and global economic uncertainty. This uncertainty has driven a flight to safety, with investors flocking to treasuries, leading to increased demand and driving down yields. But how does this affect DSCR (Debt Service Coverage Ratio) rates for real estate investors?How DSCR Rates Are DeterminedTo understand the impact of treasury yields on DSCR rates, you must first…
You may have heard that home ownership is less accessible today than ever before. While it’s true that home prices have soared in the past few years, that doesn’t mean real estate is no longer a smart investment. It all comes down to knowing the true value of your purchase. The key to smart real estate investing is purchasing below replacement cost and economic value to maximize profitability. Here’s what you need to know. Understanding Replacement CostReplacement cost is the cost it would take to fully replace an asset at current market rates. In real estate, that means replicating the property, construction,…
In recent years, extreme weather events have become increasingly frequent and destructive, posing significant risks to homeowners and real estate investors alike. Heat waves now occur 3 times more often than they did in the 1960s, rising sea levels are expected to reach 6.6 feet by 2100, and it is predicted that by 2050 the land consumed by wildfires in the Western regions will increase by 6 times. Floods are among the most common and widespread natural disasters, affecting every region in the United States. Yet, many flood and insurance maps are outdated, leaving homeowners vulnerable and unprepared for the evolving…
Real estate investing has its fair share of tried-and-true strategies. Because of that, many investors overlook great opportunities in niche corners of the market. Residential leasebacks are a great way to not only get a discounted price on a unit but also a reliable tenant in that unit.A leaseback consists of two basic components: Buy a property from a homeownerBecome the landlord and rent the property to the former homeownerIt’s worth being on the lookout for potential leasebacks, especially for long-term rental investors, because they offer several advantages over simply buying a property and then finding a tenant.The Need for LeasebacksImagine…
Real estate is full of opportunities for savvy investors, which is why the industry is so competitive. Those who can’t get funding quickly often lose deals to investors who can.Short-term bridge loans from Dominion Financial Services may be the answer. They provide fast funding so investors can move on properties they like sooner. Even better, you can get up to 100% of acquisition and rehab costs covered by a bridge loan so you can buy, rehab, and flip a property without tying your capital up.Why Use a Short-Term Bridge Loan?There are several good reasons to use a short-term bridge loan.…
In recent months, a heated debate has sparked across the nation concerning the impact of institutional buyers on housing affordability. States like California, Minnesota, and Ohio are contemplating legislation that would limit the number of properties these entities can acquire, citing concerns that they are squeezing out entry-level home buyers from the market. While much of the discourse focuses on the predicament of potential homeowners, there’s another side to the story that deserves attention: the renters.A Look at Rental DynamicsAmerica’s rental population continues to grow. By 2024, renters inhabit 34% of all occupied housing units. Several factors drive this trend.…
To many experienced real estate investors, old properties are a diamond in the rough, especially those with fix-and-flip expertise. Restoring historic properties present challenges, such as higher costs and the obligation to meet more stringent regulations. However, one creative solution for overcoming these obstacles is utilizing Historic Rehab Grants. These grants can help minimize the downsides of restoration while allowing investors to preserve culturally significant structures.Purpose and EligibilityThe primary goal of these grants is to preserve or restore historically significant buildings. Properties must qualify for grant funding by being listed on the National Register of Historic Places (NRHP) or being…
Real estate investors often require quick financing solutions to seize opportunities in the competitive market. A short-term bridge loan is a popular option that helps investors navigate the gap between buying a property and securing permanent financing, or selling an existing property. But how does a bridge loan work? Read on to learn about the mechanics of bridge loans and how Dominion Financial Services can help you with your next project.What Is a Bridge Loan?Bridge loans provide short-term financing for investors awaiting permanent funds or sale proceeds. They typically last six months to a year. Lenders charge higher interest rates to…
Dominion Management, a property management company based in the Baltimore area that oversees roughly 800 single-family homes, has an exceptionally low delinquency rate – under 5% – compared to the average tenant delinquency of 11%, according to the Census Bureau’s Pulse Survey. They also maintain a long tenancy term of 5-6 years rather than the typical 12 month average. How do they make this happen?Being a landlord entails more than just owning property and collecting rent. It involves careful management, communication, and foresight to protect your investment and maintain positive landlord-tenant relationships. Here are 4 expert tips to maintain low delinquency…