Browse our articles below and learn the ins and outs for investment lending!
Found what looks to be the perfect property deal to start or expand your real estate empire? This is the time to stop, take a breath, and look for the warning signs that could ruin those potential dollars you’re hoping to make.
Foreclosures are rising, a distinct signal that the cracks in these economically challenging times are starting to show. For real estate investors (or would-be ones) this equals opportunity.
The simple definition of cross-collateralization is when an asset (in this case, real estate) is used to secure multiple loans. For example, you have a primary residence with a mortgage but take out further borrowing that draws on the equity built up in the home.
Funding investment real estate is very different to buying your home. Yes, you can approach the bank, who may (or may not) grant you further borrowing. But today’s entrepreneurial landscape has many other ways to skin a cat, one of which is seller financing.
There’s probably not a real estate investor in the US right now who isn’t nervously watching financial events unfold. The impact of worldwide tariffs (not to mention all the other volatility) is causing knee-jerk reactions in the markets. This, of course, impacts interest rates.
Debt yield is a method of measuring risk for commercial real estate lenders. In short, it looks at the net operating profit (NOP) of the property and uses this to determine how long it will take to recoup their losses if the borrower defaults on the payments
A credit score is used to determine how you deal with credit. Lenders use it to assess the likelihood of adherence to repayments—in other words, how much of a risk you are at potentially defaulting.
Entering the rental market requires significant due diligence before buying a property. Carrying out extensive real estate market evaluation before parting with any cash is key to success—and can also make a very real difference to the level of profit you achieve.
A bridge loan is a way of financing a property purchase that “bridges” a temporary monetary gap. This allows the purchase of real estate while waiting for expected funds to arrive from another source.