Serving the Real Estate Industry Since 2007
Please review this sponsored post, thank you.
Universal Commercial Capital
8907 Warner Avenue, #145, 92647, Huntington Beach
BRE#:01217502 NMSL#:1730798
Realty411.com has assisted companies of all sizes expand their visibility and grow their business since 2007. Contact us for a complimentary marketing session: CLICK HERE.
By Dr. Chander Mishra
As we progress through 2024, the multifamily real estate sector continues to experience significant transformations, shaping a landscape brimming with both challenges and opportunities.
This detailed analysis delves into the seven pivotal trends that are not only redefining the multifamily market in the current year but are also expected to influence the sector well beyond 2024. Providing a comprehensive guide, this overview caters to investors and industry professionals aiming to navigate these evolving dynamics effectively.
article continues after advertisement
The year 2024 stands out for its record-breaking pace in multifamily construction, with the completion rates of new units reaching unprecedented levels. This boom is the result of a robust pipeline of projects initiated over the past few years. However, a recent deceleration in new construction starts—prompted by economic shifts, including interest rate adjustments—hints at a potential contraction in the pipeline by 2025. Currently, the market faces heightened competition as a flood of new properties enters the scene.
Following a period marked by extreme volatility, the multifamily rental market is poised for stabilization. Predictions indicate a gradual increase in rental rates, fueled by a stable employment landscape, sustained housing demand, and ongoing economic uncertainties. The expected rent growth, while modest, suggests a market moving towards equilibrium, balancing out the rapid fluctuations experienced previously.
A significant trend reshaping the multifamily market is the growing preference for long-term rentals over homeownership. This shift is largely driven by the prohibitive mortgage rates and general unaffordability in the home-buying sector, which has broadened the demographic profile of renters to include those who might traditionally opt to buy. This demographic evolution offers real estate operators a chance to cater to a burgeoning market segment with specialized services and amenities aimed at long-term renters.
The adoption of hybrid work arrangements is significantly influencing multifamily housing preferences. As more people engage in remote or hybrid work, there’s an elevated demand for living spaces that accommodate home offices. Additionally, there’s a noticeable shift in preference towards multifamily locations further from conventional business districts. This shift provides an opportunity for real estate developers to innovate in property design and amenities, addressing the needs of a workforce that values flexibility and convenience.
The role of advanced technologies, particularly AI, in enhancing multifamily property searches is expected to expand in 2024. Building on the technological advancements of recent years, AI will increasingly influence how potential renters and buyers explore the property market, offering AI-powered search tools, virtual tours, and personalized recommendations. These technological advancements promise to make the property search process more efficient and tailored to individual preferences.
Environmental sustainability is becoming a critical factor in the multifamily real estate market. A growing segment of consumers is expressing a preference for eco-friendly housing options, including energy-efficient buildings, sustainable construction practices, and features that minimize the carbon footprint of residences. Real estate developers prioritizing sustainability are likely to appeal to environmentally conscious renters, aligning with broader societal shifts towards green living.
article continues after advertisement
Changes in demographics, such as the aging of certain populations and the emergence of millennial and Gen Z as significant groups of homebuyers and renters, are dictating evolving housing needs and preferences. These demographic trends necessitate a variety of housing solutions, from multi-generational living arrangements to affordable options for younger adults and accessible features for older residents.
The multifamily real estate market in 2024 is characterized by rapid evolution and diverse opportunities. For investors and industry stakeholders, staying informed about these trends is essential for navigating the complexities of the market and leveraging the potential it offers. As the sector continues to adapt and grow, the coming year promises to be a pivotal one for multifamily real estate, driven by innovation, consumer preferences, and economic factors.
Our mission is to empower investors in building generational wealth and passive income, leaving a lasting legacy for their families. Through our comprehensive process of acquiring, operating, and eventually disposing of large-scale real estate assets, we offer a secure alternative to traditional stock and bond markets. Our unwavering commitment lies in safeguarding and preserving our investors’ wealth while delivering exceptional growth opportunities.
If you are interested in exploring the world of multifamily real estate investing and discovering how you can secure your financial future, we invite you to visit our website and schedule a call with us. Take the first step towards a brighter and more prosperous tomorrow with BlueOcean.
Located across Colfax from the Anschutz Medical Campus, the new development will include 370 residential apartments and ground-floor retail anchored by Queen City Collective Coffee
Aurora, CO (June 2024) – The development team of Uplands Real Estate Partners, The Max Collaborative, and Wynne Yasmer Real Estate (the same group behind the development of One River North) is pleased to announce the opening of The Broadleaf, a mixed-use residential development located within Fitzsimons Village, across from the Anschutz Medical Campus. The development includes 370 apartments and more than 9,000 square feet of ground-floor retail space lining the boulevard within the master-planned Village. Queen City Collective Coffee has signed on to operate a café space integrated within the residential lobby. Davis Partnership Architects is the architect for the project and JE Dunn is the general contractor. Kairoi Residential has been chosen to be the property manager.
article continues after advertisement
The Broadleaf marks the second project opening this year for the development team in the greater Denver market. The partnership recently opened the iconic One River North project, a residential high rise in Denver’s River North Arts District (RiNo), which has garnered national attention for its unique architecture with a “canyon” traveling through its facade. Uplands Real Estate Partners and The Max Collaborative were both founded by members of the Ratner family, the founding family of Forest City Realty Trust, which led the transformative redevelopment of Denver’s old Stapleton International Airport. Wynne Yasmer Real Estate is a Denver-based developer whose principals, Brian Wynne and K.C. Yasmer, are both former Forest City executives.
“We’re thrilled to bring a boutique residential building with top-of-market amenities to the professionals who work and study at the Anschutz Medical Campus,” said Josh Hoffman, a principal with Uplands. “The medical campus is home to approximately 25,000 employees and more than 4,000 students, with a total of 55,000 people expected to be working or studying at the campus at full buildout. The Broadleaf will provide residents with a level of quality, design, and amenities not yet offered in proximity to the campus.”
The Broadleaf is located four blocks from the Colfax Light Rail Station, providing future residents with direct access to downtown Denver, Denver International Airport, and the southeast business corridor. The development features a robust amenity package including the only rooftop pool in the area with dramatic views of the mountain range, a state-of-the-art indoor / outdoor fitness center, coworking spaces, a pet spa, bike storage with workshop, a boutique coffee shop, and secure garage parking. A half-acre outdoor courtyard will provide an urban oasis with grills, picnic tables, lounge seating, lush landscaping, and outdoor lawns for yoga and exercise.
article continues after advertisement
At seven stories, The Broadleaf is the tallest residential building in the submarket. It is the only residential building in the submarket constructed from light-gauge steel, providing superior acoustics and less sound between residences. The meticulously designed residences feature best-in-class finishes and offer one-, two- and three-bedroom apartments ranging in size from 500 square feet to 1,600 square feet.
Media Contact: Paul Suter, Suter Media Relations
720-771-9093 or [email protected]
By Lloyd Segal,
President of LAC-REIA
The Myth: “You need money to invest in real estate.”
The Truth: Find a good real estate deal, and the money will find you. Ask any experienced investor and they will tell you that a lack of funds is never an issue; lack of good deals is! If you can negotiate a good price on a house, you will find plenty of partners or lenders willing to put up the money.
The Myth: “I’ve got a job, a spouse, kids, and little spare time to invest.”
The Truth: Turn off your television and you’ll have all the time you need! People spend an average three hours per day in front of the tube. They spend even more time on weekends. Want to do something fun this Saturday? Load the kids in the mini-van and drive around looking for ugly houses. Make a game out of it giving a dollar to each of your kids that spots an ugly house. Tell them that each ugly house you buy means enough money to take them all to Disneyland.
article continues after advertisement
The Myth: “Those late night infomercials and reality shows don’t work”
The Truth: You can convince yourself that anything won’t work. Henry Ford once said, “Whether you think you can or think you can’t, you are always right.” If you listen to the critics, the naysayers, and other pessimists, you’ll convince yourself it doesn’t work. Most people that criticize money-making ideas need to do so for their own ego. After all, if it were true, what’s their excuse for not being successful? Make a point of not taking financial advice from anyone who makes less than you do.
The Myth: “There’s too many people trying to buy houses to find a deal.”
The Truth: There are more than enough deals to make everyone successful. At any given time there are hundreds of distressed properties for sale in your market for each investor looking for them. Besides, a majority of people who say they are investors are just sitting on the sidelines waiting for something to fall in their lap. Don’t be one of them – go out and make deals happen! You will be successful if you spend your time finding deals and not worrying about other people.
The Myth: “It doesn’t work in my city.”
The Truth: It works in EVERY market. True, it may work differently in some markets than others, but there are investors making money in every city, every day of the week. You have to learn your market – the rents, the trends, the local customs, the lenders, the title companies, etc. Then, learn the techniques and adapt them to your market. If you are in a hot market, you can buy and sell properties faster and ride inflation. If you are in a down market, you can find lots of bargains. Regardless, in every market, there are people with financial problems that are forced to sell their homes.
The Myth: “Although the market is good right now, I hear that we are heading for another recession.”
The Truth: There are always naysayers predicting market crashes. You need to ignore these pundits. Besides, there are always deals regardless which way the market is heading. If the market changes, change your strategy. For example, if the market falls, sell cheaper or with attractive terms. When Dell wants to move more computers, they drop the price. When GM wants to move cars, they offer no-interest financing. Be creative and do things that make your houses sell or rent faster. If prices are falling, buy way below market and sell just below market. If rental vacancies go up, offer free cable or WiFi. After all, when everyone else is “dooming and glooming,” it only clears out the competition.
The Myth: “Real estate agents don’t cooperate with investors.”
The Truth: The right agent can be your best friend and #1 source of business. I have one agent that brought me six deals in the past year. She knows exactly what I want and only calls me when there’s a deal. You need to educate a few agents and let them know exactly what you want. Few agents have repeat customers. In contrast, you have to make them understand that you will be giving them business over and over again.
The Myth: “I need good credit to buy houses.”
The Truth: Good credit helps, but you don’t need it to make money in real estate. Lease/options, owner-financing, flipping properties, assignments, and other creative techniques will allow you to buy real estate without credit. Besides, you can always use a partner who has good credit. You can also borrow “hard money” without having good credit. In the interim, you can work on fixing your bad credit so you can use it as an asset in the future.
The Myth: “Real estate is risky. I could lose everything.”
The Truth: Real estate is one of the safest investments you can make! The stock market is beyond your control. Savings, CDs, money market funds won’t earn you enough money to make it worthwhile. You have to be willing to take a calculated risk to make money. The more you educate yourself, the less risky real estate becomes. However, don’t think you need to know everything before taking action.
article continues after advertisement
The Myth: “I need to learn more before I start.”
The Truth: If you’re reading this, you probably know more than enough to get started in real estate. After all, you’ll never learn everything. Knowledge is an ongoing learning process, not a result. Read books, attend seminars, and take action. Then, learn some more and take a lot more action. If you are really impatient, enlist the help of others.
Henry Ford said, “Why should I clutter my mind with general information when I have men around me who can supply any knowledge I need?” Henry Ford was a smart man because he realized that he didn’t need to know it all if he could consult with others that did. And this was before Google!
Now go out there and start submitting offers. Remember, you won’t catch any fish if you don’t put your hook in the water.
Lloyd Segal
After practicing law for over 30 years (specializing in real estate litigation), Lloyd Segal assumed the leadership of the Los Angeles County Real Estate Investors Association in 2017 from the late Phyllis Rockower. Lloyd is an author, real estate investor, mentor, public speaker, and landlord. He is the also the author of four real estate reference books, including “Stop Foreclosure in California” (Nolo Press), “Stop Foreclosure Now” (American Management Association), “Foreclosure Investing” (Regency Books), and “Flipping Houses” (Regency Books). The Los Angeles County Real Estate Investors Association is the oldest (1996) and largest investor group in California. In his role as President, Lloyd is busy expanding LAC-REIA’s events and programs for members and real estate investors. For more information, visit www.LARealEstateInvestors.com
By Rick Tobin
Are we currently experiencing the best economic boom ever with all-time record high stock and real estate prices? Or are more investors moving their weakening dollars into hard assets like real estate, partly as a hedge against skyrocketing inflation trends? Can Quantitative Easing ever end, or have the Federal Reserve and US Treasury created a seemingly infinite hyperinflationary spiral?
Home values have never been higher in many U.S. regions than what we’ve all seen here in 2024. The Dow Jones index also recently reached an all-time peak high of 40,000 and the NASDAQ surpassed 17,000 for the first time ever.
American mortgage holders may now have access to a staggering $11 trillion in tappable equity that’s over and above their existing mortgage balances, according to the May 2024 Mortgage Monitor report from the Intercontinental Exchange (ICE).
The amount of residential property equity is so massive that if all 48 million homeowners spent $10 million of their tappable equity each day, it would take more than 3,000 years to exhaust it, as per ICE. This amount of residential equity available is more money than the Gross Domestic Product (GDP) of Japan, India, and the United Kingdom combined.
The same ICE report identified just five housing markets on the West Coast that represented a quarter of that $11 trillion equity number: Los Angeles, San Francisco, San Jose, San Diego, and Seattle. Four of these five core equity cities are located in the Golden State of California.
As per a study released by Zillow, approximately 20% of our nation’s total housing value is in California. With an estimated 40 million residents in California and upwards of 333 Americans across the nation, the state residents represent close to 12% of all Americans. Yet, our state home values represent a much higher 20% number as compared with the rest of America.
Homeowners usually need income first to qualify for a third-party mortgage to purchase their home. While the cost of living for West Coast residents is typically near the highest in the nation, the salaries paid out by many employers, or the income generated by self-employed workers, is also among the highest in the nation with San Francisco, San Jose, and Seattle ranking first, second, and third nationally for the top average salary, according to CareerBuilder.
article continues after advertisement
Three of the Top 5 most unaffordable housing regions in America are located in Southern California – #1 Los Angeles, #3 Irvine, and #5 Long Beach. Miami was #2 and New York City was #4, as per the RealtyHop Housing Affordability Index for May 2024.
Average families who earned the median income in Los Angeles must now spend a shockingly high percentage of 99.33% of their income on home ownership costs, as discovered in this RealtyHop survey. If true, the average Los Angeles resident would have just 0.67% (or less than 1%) of household income left over to purchase groceries and pay for utilities, automobiles, clothing, home maintenance, and other basic necessities if they were actually able to qualify for a home mortgage with those very high debt-to-income ratios.
Rounding out the Top 20 for the most unaffordable housing cities in America, which included many more California regions, were as follows:
6. Newark, NJ
7. Anaheim, CA
8. San Diego, CA
9. San Jose, CA
10. Boston, MA
11. San Francisco, CA
12. Santa Ana, CA
13. Oakland, CA
14. Chula Vista, CA
15. Fremont, CA
16. Jersey City, NJ
17. Austin, TX
18. Dallas, TX
19. Riverside, CA
20. Seattle, WA
These Top 5 most unaffordable housing regions in the survey compared the median home listing price primarily with the median income for the same region. Let’s take a look below at how high the percentage of household income was needed to cover the project monthly household expenses (mortgage, property taxes, insurance, etc.):
Now, let’s review the Top 5 most affordable cities in America, which have much lower percentage of income to monthly household payment numbers:
Out of the 100 major cities analyzed by RealtyHop, a whopping 88 of the cities had homebuyers paying more than 30% of their monthly income towards household expenses.
The RealtyHop report findings were based on factors such as the percentage of income required to afford a home, a 30-year fixed mortgage rate of 7.125% (subject to change), and projected household income based on US Census and BEA data.
While there are many cities and towns across the nation with much higher median home values than the Top 5 most unaffordable housing regions listed by Realtyhop, those areas usually had much higher household income averages that helped make the home purchases more affordable.
article continues after advertisement
Families who live in the five most expensive U.S. states for home purchases require an annual income exceeding $270,000 to live comfortably, according to a report published by Visual Capitalist.
“Comfortable” is defined as the income required to cover a 50/30/20 budget, with 50% set aside for necessities like housing and utilities, 30% for discretionary spending, and 20% allocated for savings or investments, as per the same Visual Capitalist report.
The Top 10 most expensive states for two working adults who are raising two children is listed as follows:
Because home values are so much higher today, the average mortgage balance debt is dramatically rising for many borrowers. One-to-four residential mortgage debt has also reached all-time record highs just north of $20 trillion dollars, as per the St. Louis Fed’s Economic Data.
“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett
If you’re fortunate to own assets, your net worth is probably rapidly increasing. If not, the declining purchasing power of the dollar is making it very challenging for tens of millions of Americans to pay their bills on time.
There’s another old saying that is somewhat similar to Mr. Buffett’s quote that’s as follows: “Either you work hard for your money or your money works hard for you.”
Our towns, cities, states, and our nation are spending money like never before in U.S. history. The federal government continues to increase our debt at a pace of close to $1 trillion dollars every 90 days.
Between January 2020 and October 2021, the M1 money supply (cash or cash-like instruments) grew from $4 trillion to $20 trillion as I’ve written before. The more money that is created and the larger our federal debt grows and compounds, the weaker the purchasing power of the dollar.
For those people who don’t own any real estate or stocks, they are not experiencing firsthand the record wealth being created for many Americans.
Inflation is more likely than not to grow at a faster pace in the near future than what we’ve seen over the past 50 years or so. If so, real estate has proven to be an exceptional hedge against inflation as properties tend to appreciate on a historical average at least as high as the published annual inflation rates.
If you’re lucky enough to own one or more properties today, then you might consider pulling some equity out of the home to acquire more income-producing assets. For first-time homebuyers, today may be the best time to start looking for properties.
A home near you that you consider to be “too expensive” might seem very reasonable five years from now as inflation keeps rising and our dollar gets weaker and weaker.
Rick Tobin
Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details.
Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.
By Dan Harkey
Educator & Private Money Finance Consultant
949 533 8315 [email protected]
Visit my website at danharkey.com
“Private money, hard money, and bridge loans” are used interchangeably:
These loans refer to alternative lending sources separate and distinct from banks and institutional lending. One or more private investors/lenders fund each loan. Pools of investment capital accumulated with many private parties are also frequently used to finance private money loans. A sponsor/manager will be formed for pooled entities to fund many loans and manage the servicing.
Private money lending stands out when traditional banks decline, or the loan transaction is non-bankable. It’s a solution for property-related issues that need to be resolved, such as completing a partially constructed building or increasing occupancy in an income property with excess vacancy.
Transactions where private money loans benefit borrowers.
*Fast loan approval with possible 2-to-4-day funding for bank declines and fallouts: The bank may already have done significant underwriting, including opening escrow and title, obtaining an independent appraisal, and completing the application and financials. Some private lenders can use the banks’ information to fund faster, particularly when they have a mortgage pool or immediate capital available to invest.
*Debt consolidations for consumers, businesses, or a combination of both: In most cases, a funded loan is used for debt consolidation, lowering the borrower’s monthly payment obligations. The funded loan should give the borrower some breathing room to improve their credit and obtain a long-term bank loan. Also, if the loan is a second lien, the average interest rate between the first and second is calculated to show a ”net-effective rate.”
article continues after advertisement
*Marginal to poor creditworthiness, where a borrower is not bankable, and approval of a loan request is primarily property equity-driven.
*Special purpose-unique properties– Churches, synagogues, restaurants, bars, automotive repair shops, body repair shops, gas stations, and other single-purpose or limited properties.
*Limited document loans where the requirement is a loan application, credit report, and 3 to 6 months of bank statements. The objective is to prove the ability to pay the outstanding loan payments and other debt obligations.
*Fresh start loan. Borrowers may need to catch up and give themselves breathing room for accrued and differing payments.
*Payoff loans coming due or past due: Refinance and pay off existing first, second, and third lien position loans that may be due. Sometimes, refinancing the second and providing cash out is the appropriate answer to the loan request. Loans are available for both owner and non-owner-occupied residential and commercial properties.
*Cash-out for any reason refinances based upon the protective equity of existing real estate. Proceeds may be for business and consumer purposes. The Federal Government and some states, such as California, require a special license to engage in consumer-purpose lending.
*Junior lien or second-position loans on both owner and non-owner-occupied dwellings for business purposes.
*Construction completion, rebuilding, or upgrading properties in poor or marginal condition: The loan is usually necessary because the collateral property or the borrower needs to meet bank underwriting guidelines in its distressed or partially completed state. Loan approval by the lender will consider the as-is-value and the as-completed-value.
*A borrower may own and operate a cash-based small business with limited financial strength, as the books show. A lender will require 3 to 6 months of personal and business bank statements. The borrower must still prove that they can make the required payments.
*Leveraged existing real estate equity developed over time to borrow additional funds, purchase other investment properties or invest in a business enterprise.
*Purchase a property with some cash down payment, sweat equity, and seller’s agreement to carry back a subordinated junior lien. The property seller would have the borrower sign a promissory note and a deed of trust with a set interest rate, payment schedule, and due date. The subordinated second is recorded concurrently with the first trust deed but with a recording number after the first.
*Inherited property where family members and successor trustees who are beneficiaries need funds for distribution to the beneficiaries, pay the estate’s legal costs or fix up the property for a future rental. Another option is fixing it and selling it on the open market.
*Loan on unimproved raw land. Loaning on raw land can be a complex process. Is the land parcel part of an existing subdivision, referred to as an infill lot, a commercially or industrially zoned parcel within a subdivision, or a larger parcel held for future development? The borrower may need to use the property as collateral to raise funds for future entitlements, including engineering, architecture, various reports, and fees to develop a fully entitled parcel ready to be built. The borrower would pay the loan off as part of the construction loan.
article continues after advertisement
*Retail strip and community centers, industrial or other properties that require upgrades or repositioning: Many centers are distressed due to the COVID shutdown vacancies, where tenants could not pay rent.
*Fix-and-flip loans allow high-frequency purchasers to purchase a distressed property, rehabilitate it with the expectation of resale, and turn a quick profit. Borrowers need both experience and some of their capital at risk.
*Litigation settlements: A loan to buy out a business partner, pay off a pesky family member, an ex-spouse, a judgment lien, or a partition suit.
*Pay off civil judgments and liens, including arrearage in property taxes, association dues, and federal and state tax liens.
*Sale of existing promissory notes and deeds of trust to 3rd party investors: The sale is usually at a discount, whether the promissory note is performing or non-preforming. A deal will free up cash.
*Hypothecation or pledge of a promissory note and deed of trust: A borrower who owns a promissory note and deed will assign them to a third-party investor as collateral for a new loan.
*Cross-collateralization of more than one property: Multiple properties are required to meet the lender’s equity requirements. The borrower would sign one promissory note but have recorded liens that encumber two or more properties.
*Small mobile homes or trailer parks: properties that don’t meet the underwriting standards of intuitional lenders.
*Vacation, Short-term, and rental income properties; Financials and history are necessary to prove the ability to make payments.
*New ground-up construction or construction completion for a partially completed project: Most requests result from borrowers needing to fund additional dollars to complete the project when they deplete their capital or existing construction loan proceeds.
*Collateral combines real and personal property, such as a motel, restaurant, carwash, or gas station with mini markets. A recorded trust deed encumbers the real property, and a UUC-1 financing statement will be filed with the Secretary of State to encumber the personal property. The valuation and decision to make the loan must be on the real property only.
*A long-term lease on commercial property has or is expected to expire soon. The lease expiration could cause a vacancy and a disruption in rental income. If the master tenant vacates the property, this will disrupt other smaller in-line tenants because the master tenant is responsible for the primary draw of foot traffic to the center. Banks will usually not make this loan. This loan is generally a bridge loan until the owner obtains a long-term lease with a credit-worthy tenant and manages the center back into stabilization.
*Credit approval is subject to highly sophisticated lease analyses, with multiple tenants having different lease terms, including length, lease rate, and lease provisions. Some tenants are on long-term leases, and some are on a month-to-month tenancy. Lease documents may include go-dark requirements for the anchor tenant or provide for lease cancellation in the event of excess vacancy or loss of an anchor tenant.
*Some properties require mutual property access easements for ingress/egress or complex usage rights, such as reciprocal parking agreements. Many properties, such as churches and retail shopping centers, sign contracts with multiple property owners to use the entry/exit of the property or the parking in specific ways or at certain times.
*Foreign nationals with and without social security. The borrower must have a U.S. bank account(s). The borrower must have a process agent service arranged during loan processing.
*“Notice of a substandard condition” or “notice of property noncompliance” is recorded on public records by a building department notifying the public that the property is out of conformance or in disrepair for building and zoning codes. The bridge loan funded by private lenders will provide funds to make substantial improvements and modifications to bring the property up to acceptable building, safety, and zoning standards. Institutional lenders will not make these loans.
*Non-conforming property does not comply with current zoning and building standards. As a result, strict limitations exist on repairing or replacing structures in destructive acts such as fire, flood, windstorm, vandalism, or earthquake. The property may not be able to be rebuilt to an acceptable level after the destructive event occurs.
*Earthquake seismic retrofit. Many older properties require upgrades, such as engineered reinforced steel frames bolted into the existing structure and walls shored up with steel support fasteners to withstand earthquakes.
*Tenant improvements. Commercial building owners must provide funds to install interior or exterior improvements to satisfy the owners’ and prospective tenants’ leasehold improvements.
*Cannabis-related properties, manufacturing, and retail facilities: Some states have legalized lending in cannabis-related operations, and others have not.
In summary, private money loans are collateral-driven, even though the lender must review the borrower’s financials to prove that the borrower can pay the debts.
If you find value in this article, please forward it to friends and associates. You may use this article in your marketing efforts.
Thank you
Dan Harkey
Dan Harkey
Dan Harkey is a contributing author to Weekly Real Estate News and is a Business & Financial Consultant. He can be contacted at 949-533-8315 or [email protected].
Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.
