Author: Lending Agent
The world of construction loans is changing, and non-bank construction lenders are becoming a key player. Traditionally, investors and developers relied on banks for financing, drawn by lower interest rates and established relationships. But things are shifting. With rising interest rates and stricter loan conditions—especially in the risky construction sector—obtaining bank financing has become significantly harder and more time-consuming. This added red tape often leads to longer wait times to access funds, pushing many toward non-bank construction lenders.As the banking sector grapples with these hurdles, non-bank construction lenders are stepping up. They’re providing a different route, avoiding many of the…
The Corporate Transparency Act (CTA), established under the Anti-Money Laundering Act of 2020, aims to curb illegal financial activities through enhanced transparency measures. Its intent is to peel back the layers of anonymity often exploited by money launderers and others engaged in illicit activities, disclosing the identities of the individuals who ultimately own or control legal entities. It mandates corporate entities to report details of their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Understanding the Corporate Transparency Act is especially relevant to real estate investors who frequently utilize intricate corporate structures in their transactions.A recent landmark decision by a federal…
Real estate investors and marketers who rely on robocalls and robotexts to reach potential clients need to be aware of new regulations from the Federal Communications Commission (FCC). In December 2023, the FCC finalized new rules to close the so-called “lead generator robocall and robotexts loophole.” These new regulations require strict compliance with “one-to-one” consent for all text messaging. Explicit written consent must be obtained for each and every entity that will send automated telemarketing messages or advertisements.Marketers who solicit sales or advertise products or services using robocalls or robotexts who fail to comply with these new regulations may face…
Bonus depreciation, an advantageous tax incentive for investors, is undergoing significant changes that may affect your investment strategy. As part of the Tax Cuts and Jobs Act, bonus depreciation allowed investors to immediately deduct a percentage of the purchase price of eligible business assets. This was a substantial benefit for real estate investors, enabling them to deduct 100% of the cost of qualifying assets. However, with the phase-out period beginning, your tax planning for asset purchases must adapt accordingly. For the 2023 tax year, the deduction drops from 100% down to 80%, which alters the overall cost of your investments…
When it comes to securing funding for your real estate investments, not all lenders stand equal. The diversity in terms and conditions available across the market stems largely from the variety and quality of note buyers to which a lender is connected. At Dominion Financial, we set ourselves apart in this crowded field, especially with our unbeatable Long-Term Rental Loans. Recognized by Inc. 5000 as one of America’s fastest-growing private companies, we offer a comprehensive suite of financial solutions, including 30-year DSCR rental loans, fix & flip loans, ground-up construction loans, and multifamily loans. Here’s why no one can match…
Build-to-rent (BTR) homes, also known as “B2R” and “build-for-rent (BFR),” are real-estate properties specifically built to be rented. These can include small lot homes, two-story houses converted into duplexes, expansive horizontal apartments, and various rentals in between. BTR properties are increasingly popular with savvy investors in the real estate market. They comprised about 6% of the new homes built between 2021 and 2022 — a 42% increase from prior years. However, this BTR boom has made the current economic climate more challenging for builders, renters, and property owners alike. Builders struggle to move inventory, and many independent landlords can’t guarantee a…
Douglas Stein:I want to start today’s conversation with what I think is the latest and greatest, which has real implications for people. I’m talking specifically about the Corporate Transparency act, the CTA.It was enacted back in 2017 as part of funding the US military. It comes down to breaking down the transparency that currently exists within the US entities. Under the CTA, all of that (privacy) goes away. People who want to hide who ownership, that’s more or less dead.The CTA now requires you to report who the beneficial owners are. And there’s a whole long definition of that: 20%…
The financial world is buzzing with anticipation following the Federal Reserve’s recent choice to keep interest rates steady. While market analysts largely predicted this move, the unexpected twist came from Fed Chair Jerome Powell, who hinted at a possible three-rate drop in 2024. This surprising announcement has ignited curiosity and raised questions about its potential impact on real estate portfolios, particularly for investors seeking to navigate the evolving landscape.Understanding the Fed’s DecisionAt its year-end meeting, the Fed chose to halt interest rate hikes, keeping short-term rates within the 5.25% to 5.5% range. Powell’s assurance of scaling back on rate increases…
Craig Fuhr, Senior Loan Officer at Dominion Financial, co-hosts the Real Investor Radio Podcast. He wrote this blog after attending IMN’s SFR Forum in early December.The Dominion Financial sales and marketing team just returned from the IMN Single Family Rental Conference in Scottsdale, AZ. Now I understand why Dominion Group owners, Fred Lewis and Jack BeVier, call it a “must-attend” event.Real estate investors come in many flavors, from there-to-there level of experience to the asset classes they trade in. I’ve attended many events and masterminds over the past 18 years across the country. What I saw at IMN was a…
Private lenders and traditional banks represent two distinct avenues for obtaining financing, each with its own set of characteristics, advantages, and drawbacks. Here’s a concise comparison:Flexibility:Private Lenders: Typically more flexible in terms of loan terms, repayment schedules, and eligibility criteria.Traditional Banks: Tend to have stricter lending criteria and standardized loan offerings.Speed of ApprovalPrivate Lenders: Often provide quicker approval processes, facilitating faster access to funds.Traditional Banks: Approval processes can be more time-consuming due to comprehensive assessments and regulations.Personalization:Private Lenders: Offer more personalized lending solutions tailored to the specific needs of the borrower.Traditional Banks: Provide standardized loan products, offering less room for…