Browse our articles below and learn the ins and outs for investment lending!
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.
Using hard money loans to fund property investments is fast becoming one of the prime methods of raising cash—both for the solo entrepreneur and individuals, investment groups, and businesses with more experience.
A fix & flip loan is designed to fund the majority of both the purchase and the renovation costs of distressed real estate property. They offer relatively short-term borrowing at an agreed rate of interest, allowing investors to fund such a project without the need to have a vast investment pot.
With an aging population, the senior housing market offers investors a great deal of scope to add an alternative arm to their portfolio. There are many options for financing such deals, although the large sums involved in such commercial investing tend to make this a pathway for those with plenty of experience.
A 1031 exchange is a powerful way to defer the capital gains tax that you owe on the sale of a property by investing it into another. The process has many complexities, but the crux of such an exchange is that the proceeds of the sold property are directed immediately into another real estate purchase.
Purchasing a less-than-perfect property with the intention of doing it up for financial gain comes in many guises. This could be the classic fix-and-flip or the potentially lucrative BRRRR (buy, refurbish, rent, refinance, repeat) model.
Being able to flip a house with no money sounds like an almost unattainable dream. However, it’s inherently possible, as many successful entrepreneurs can testify.