Adaptation and Survival in Commercial Real Estate

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In 2019, the United States is the most preferred location for commercial real estate in terms of inbound capital according to the Deloitte 2019 Commercial Real Estate Outlook. This Outlook report hits hard on the ability of investors to be agile in their real estate businesses, but the agility must be based on awareness of trends that are occurring based on trend analytic and artificial intelligence applications that allow a business owner to see what is happening in and around his property so that decisions can be made quickly to adjust and/or mitigate and survive changes.

Some of the key terms popping up in the commercial real estate investor and real estate investor trust literature include diversification, multi-use properties, healthcare properties, data centers, distributions centers, flexible leases, and flexible spaces.

Healthcare Facilities Follow Domestic Trends

Investors seem to be increasing their investments in health care facilities that include senior housing and in data centers according to the 2019 CRE Outlook. Health care and senior living residents are looking like safer investments because they are not as dependent on global trade but more on domestic trends, demographic trends, and the health of the overall economy.

Data Centers Float Because Digital Goods Continue to Move

The 2019 CRE Outlook also shows that investors are putting more capital into data centers in 2019. Data centers seem to be more immune to global trade tensions at the moment because businesses are focused on expanding their digital infrastructure across borders, according to the wsj article by Esther Fung, “Real-Estate Stocks in High Demand as Trade Battle Brews.” Even though physical goods are stopped by tariffs, digital goods are still moving.

Distributions Centers Move Goods Within the Borders

Distribution centers that support the movement of goods within the United States are also looking like safer investments because they will not be as disrupted by global trade tensions that disrupt centers in port cities dependent on global trade.

Simulation Allows Buyers to Visualize Space Options

Investors are including “flexible spaces” and experiential and engaging spaces as part of a more diversified portfolio. When I read the Deloitte 2019 Commercial Real Estate Outlook, the term flexible space seems to refer to a marketing concept rather than the physical reality-morphing room seen on Star Wars. It involves using 3D and augmented reality simulation to allow buyers to visualize a new property in multiple 3D finished options both inside and outside and choose what they like best. I’ve seen an app like this on television recently that helps you visualize how to arrange furniture in an empty room.  The buyer participates in the space design.

Varied Experience Adds Value to a Space

Catering to mixed tenants is another way to diversify a property so that they are not all one type and come and go at one time. By making a property a mixed-tenant space, the landlord services tenants that  may be office workers or retail incubators mixed in with places to eat, workout, and shop all within walkable distances from one another other. The experience of renting the space is of higher value to the tenant because of the foot traffic and opportunities to network the space provides.

Flexible Leases for Mixed Tenants to Manage Uncertainty and Attract Startups

Working in tandem with the mixed tenant model is another business model that involves offering short-, long-term, and hybrid lease agreements of different lengths to varied tenants to fill vacancies in the short-term rather than having spaces continue to be vacant. The shorter lease lengths appeal to startup businesses and to established businesses struggling with market uncertainty. This strategy is a form of thriving on chaos in that agility is planned and business tenants can move around within a space or in and out of a space more easily as business fluctuates.

The message I received loud and clear from the wsj article and the 2019 Commercial Real Estate Outlook is that investors must become comfortable with change and agile in maneuvering to survive in the current marketplace.

REI Capital Resources built its reputation on finding private funding for investors for quick turn purchases and difficult situations.  This is still true today.  

Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.

Patrick St.Cin

W – 512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash n1 \lsdunhid

Fourteen House Flipping Mistakes to Avoid

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I decided to visit fix-n-flip websites to come up with a list of the top rooky mistakes you can make when buying, fixing, and reselling a home for profit. One of the websites I consulted while compiling this list of mistakes to avoid while fix-n-flipping houses for profit is Dave Ramsey’s website. Dave Ramsey is well known for his advice that all of us get out of debt, and that is good advice. If you have cash that you can spend to finance your fix-n-flip project, you will not feel so much pressure if the house does not sell quickly. You won’t be tempted to sell the property for a loss because loan payments and interest costs are eating away at your bottom line.  You will be able to wait out the market and sell for a profit.

However, if you need to find funding, there are private lenders and hard money lenders out there that will finance your project and I can help you find them. Calculate how much you need and give me a call.  I’ll do my best to find you the right loan for the right price quickly.

Below are 14 mistakes fix-n-flippers make in the areas of planning and budgeting, buying, renovating, and reselling properties.

  1. Planning and Budgeting: Not calculating permit costs, property assessment fees, loan originating fees, loan processing fees, inspection fees, points, or interest in your budget. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  2. Planning and Budgeting: Not knowing how much you can afford for the entire project before making a deal, including purchasing a home, making repairs, completing renovation projects, and selling the house.
  3. Buying: Buying a property sight unseen. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  4. Buying: The location you choose to buy in has a housing inventory shortage and such a high demand for houses that you become entrenched in a bidding war and end up paying above-market prices for a fix-n-flip property. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  5. Buying: You bought a house to renovate that is far away from your residence causing you to spend too much money on gas getting to and from the job site, and the repairs take longer to complete than they would if the house was nearby. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  6. Buying: Not knowing the market and not knowing if you are getting a good deal on the house you are buying. https://www.daveramsey.com/blog/how-to-flip-a-house
  7. Buying: Not looking for black mold, a bad roof, or a cracked foundation when evaluating whether to buy the house to fix and flip. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  8. Renovation: Putting in high-end upgrades while renovating the house that cause the house to cost more than the neighborhood can afford. https://www.daveramsey.com/blog/how-to-flip-a-house, https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  9. Renovation: You did not have a reliable contractor help you estimate the repairs for the house and a surprise repair broke your budget. https://www.daveramsey.com/blog/how-to-flip-a-house
  10. Renovation: You underestimated repair costs and did not add 20% to your estimated repairs. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  11. Renovation: You tried to do repairs yourself without experience and without budgeting for contractors when you need them. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/; https://www.daveramsey.com/blog/how-to-flip-a-house
  12. Reselling: Because you don’t know the market and have not done your research, you can’t accurately calculate the house’s potential value, and you don’t know how to price the house for sale. https://www.daveramsey.com/blog/how-to-flip-a-house
  13. Reselling: Failure to network with buyers and build relationships before picking a house to fix-n-flip. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/
  14. Reselling: You did not list with a real estate agent even though you hate hosting open houses. https://www.moneycrashers.com/five-tips-for-effectively-flipping-a-house/

REI Capital Resources is “focused on funding your success!”

Contact me at 
Patrick@REICapital.cash
512-213-2271 Grid Table 7

July 4th Is a Break for Investors

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U.S. stocks markets are closed Thursday in observance of Independence Day and will close early at 1 p.m. ET on Wednesday. 

Foreign financial markets will be open on Thursday, July 4. 

The New York Stock Exchange and the Nasdaq will resume normal trading hours on Friday.

The Securities Industry and Financial Markets Association also recommended the U.S. bond market to close early at 2 p.m. on Wednesday and close altogether on Thursday.

The next market holiday is Labor Day, which falls on Sept. 2.

Happy Fourth of July

Pat StCin

Depreciation: Causes of the Fall?

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What Can Make Real Estate Depreciate?

Depreciation is a decrease in the value of an asset overtime. When doing your due diligence research before making an investment in real estate, be sure to look around and consider those lurking circumstances that might decrease a property’s value.  

Although location affects the value of property most because real estate is by its nature real and tangible, supply is also a critical factor in how real estate is valued.

Supply

Overabundance means there is more of an item or resource than is needed or can be afforded by buyers, so it’s value goes down because no one buys it at the current price. The value will continue to go down until it reaches a point where buyers decide it is worth the price to store, use, and maintain the asset until the value goes up again. One example of this is the overabundance of condos that were launched in Miami right as demand fell because of a shortage of foreign buyers that was reported in the wsj article, “In Miami, There Are too Many Condos and Not Enough Foreign Buyers,” by Candace Taylor.

Location

New businesses and a new reputation may also impact the value of properties. For example a related article in the wsj reported recently that visitors to Miami’s South Beach has doubled in 10 years. The article “Wealthy Buyers Say So Long to South Beach,” by Candace Taylor, points out that the construction of new hotels on Miami Beach has made it a hot spot for spring breakers and the masses of students who come to party but not to buy has caused traffic congestion, litter, loud parties, and more danger in the neighborhood. As a result, the properties are not so attractive to wealthier buyers and the prices of upscale condo sales have tumbled in the first quarter of 2019.

Other natural changes near a property can affect its value. Some obvious ones are wildfires, sink holes, and earth quakes. Another is global warming. One reason Miami beach prices are falling according the same wsj article by Taylor is because of fears that sea levels will rise. Homes and condos at lower elevations have lost some value because of these fears.

Neglect and Lack of Maintenance

Abandoned homes tend to lose value because they are not lived in or cared for. They slowly fall into disrepair.

Global Investors

The value of houses can also go down because of events that affect buyers from other parts of the world.  The wsj article mentioned previously explains that severe economic and civil disruption caused by socialist and totalitarian regimes in countries like Venezuela, Argentina, and Brazil can affect the ability of their once-wealthy citizens to purchase property abroad as the value of their currency falls compared to the dollar.

In the commercial real estate arena, as Jeff Levin pointed out in the Forbes Community Voice, trade wars between the United States and China has reduced funding for new building projects because China is decreasing its investments in U.S. commercial real estate and selling its assets, which brings down prices.

Competition for inexpensive properties to invest in and improve or to rent out for income is usually pretty stiff. As a broker and a direct lender, it is my job to help you get a hard money loan easily and quickly. Private Lenders, not banks, are willing to help you fund your project based on the value of the property and its after renovation value. We have money to lend and you need money quickly. A perfect fit is out there.

Give me a call or send an e-mail to the contacts below.

Patrick StCin, 512-213-2271

e-mail: patrick@REICapital.cash

Appreciation: Causes of the Rise?

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What Can Make Real Estate Appreciate?

Appreciation is an increase in the value of an asset overtime. Depreciation is the opposite, a decrease in the value of the asset overtime. When doing your due diligence research before making an investment in real estate, be sure to look around and consider those circumstances that increase a property’s value. Tomorrow, we will talk about those circumstances that might cause a property to depreciate. 

Engraved in every real estate investor’s memory is the fact that location affects the value of the property most because real estate is by its nature real and tangible, a building, land, flora, fauna, and natural resources.

Using our imaginations and our memory, let’s review several things that can increase the value of an asset

Supply

Scarcity means there is a limited amount of some item or resource, so it becomes harder to find and worth more when you do find it due to competition for the limited resource. One example of a shortage creating a rise in value is the situation with single-family starter homes in the United States and the world. Although lower in price, single-family starter homes have become more valuable because there are not enough of them.   

Location

Some changes in a vicinity that increase home values may not be due to a physical change nearby, for example the employment rate goes up, the local economy improves, and/or the crime rates go down. These changes may be due to a new business coming in, but also may be due to regulatory changes that lower taxes or technological changes that allow people to work at home.

A physical change near the property can affect its value. Sometimes the value of a house goes up because of something that moves into the neighborhood or nearby, for example a water park or amenity that brings tourism or a research facility or fulfillment center that brings jobs and workers. Sometimes something that was there all along is discovered or becomes more appreciated than it was before, for example mountains and foothills with a view or the solace of desert spaces. Sometimes, a land use regulation may change causing a mini land rush.

Photo by Alexander Wendt on Pexels.com

Development

Development causes appreciation of houses. Let’s say that you buy bare land on the edge of a community and build on it. The value of the property will appreciate at least the value of the house.  If you buy in what is already known as the best district, you will most likely pay a premium price for that reputation and it will not go up over time because it is at the top already. If you buy in a place with a poorer reputation, such as a school district, and better management, government programs, or community involvement begins to improve the school district’s reputation, the homes in the area will likely appreciate.

Additions or Updates

Additions, enlargements, or updates of a home itself will appreciate its value depending on what is added and the quality of the materials and workmanship. These additions to quality might include finishing the basement, adding a screened-in porch, updating the bathroom or kitchen.

Global Investors

The value of houses can also go up because of things that happen in another part of the world that affects buyers or sellers.  Economic disruption or lack of opportunity in one country can cause people to invest in another country and move there, increasing the value of the property in that area. Wars and trade wars can also affect property value in a global economy. The wsj explains in a recent article that after housing prices fell in the United States, Latin Americans bought up luxury homes and condos in Miami.

Tomorrow, we will talk about what circumstances might make a property depreciate.

Competition for inexpensive properties to invest in and improve is usually pretty stiff. As a broker and a direct lender, it is my job to help you get a hard money loan easily and quickly. Private Lenders, not banks, are willing to help you fund your project based on the value of the property and its after renovation value. We have money to lend and you need money quickly. A perfect fit is out there.

Give me a call or send an e-mail to the contacts below.

Patrick StCin, 512-213-2271

e-mail: patrick@REICapital.cash

Luxury

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Three Experts on Luxury and Amenities

Booth: Light, Space, and Rooftops

In a recent interview with Larry Booth, Lucy Chen Blatter of Mansion Global ask Booth, “What does luxury mean to you?”  He answered, “light and space, particularly in New York, where you don’t have any of it. Chicago has some of it.”

When asked about the most valuable amenity to have in a home right now, he answered, “It’s about Community.  The amenity is the community.”  “We’re finishing a building in Chicago, on Lake Shore Drive, that has an amazing rooftop.  It’s like a country club on your roof.  We didn’t do the balconies because no one uses them.”

“Spend money on the building. Spend as much as you can on architecture and on space and light.  Because it never loses its value.”

Larry Booth of Booth Hansen

Boissier: Freedom, Protection, and Wellness

For Luxury hospitality designer Dorothee Boissier of the firm Gilles & Bossier, Paris, “Luxury is linked to freedom, and feeling protected, too.  It’s also something that brings you wellness. It can be simple, but it makes you feel well.”  (Blatter, Mansion Global, June 10, 2019) Ms. Boissier also says a boat is the most incredible way to be hidden and still in the city, to travel the world, and be able to stay in great luxury.”

In her opinion, the most valuable amenity to have in a home right now is a garden.

Kotchen: WiFi, Wellness, and Comfort

For New York Architect, Andrew Kotchen, also interviewed by Lucy Chen Blatter this month, Luxury is an experience and not an aesthetic, “It’s about comfort.”

When asked what the most valuable amenity to have in a home right now, Kotchen says, “Other than good Wi-Fi, which is the biggest thing people complain about, the most valuable amenity in projects we’re doing now is a wellness component, gyms and light therapy spaces.”

Not everything we do is in the luxury category, but we can still dream and try to add some of these priceless features into our fix-n-flip or fix-n-rent projects, like space, light, wellness, a garden, and a rooftop.

Photo by theformfitness on Pexels.com

REI Capital Resources Long-Term Rental Program

We offer asset-based and experience-based loans for long-term rental projects, including multi-family projects with the following terms: min FICO 650, BPO required, Up to 85% of purchase price, Cashout/Refinance up to 65% LTV (BPO), Max of 80% ARV, Interest rates starting at 6.5%, and points as low as 2.25%.

Give me a call or send an e-mail.

Patrick StCin, 512-213-2271,

e-mail: patrick@REICapital.cash le 4 Acc

Backyards for Wellness and Community

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Although installing a deck, patio, fire pit, outdoor kitchen, lighting, and fountains on an investment property once might have been risky, the current popularity of “health and wellness” have made buyers more inclined to look for features in a landscape that add opportunities to increase their wellness and to build community. For a real estate investor, this trend may justify increasing the landscape budget so that it can include features that invite people into the backyard where the sun, fresh air, sights of trees and flowers, sounds of leaves or water.  Amenities that soothe and refresh after a hard day at work may attract buyers looking for wellness. Lights, water features, decks, and fire pits provide places where families and neighbors can gather and might be attractive to buyers seeking both wellness and community.

An article in webmd.com, “Do You Need a Nature Prescription?” by Carol Sorgen, points out that researchers have found evidence that time spent in a natural setting, “whether walking in a park or gardening in your backyard improves mood, self-esteem, and motivation.” In the suburban backyard, working with the land you have, a real estate investor can tap into ecotherapy elements to attract buyers in 2019. The article by Sorgen, states that taking in the forest atmosphere such as the odor of wood, the sound of running water, and the scenery of a forest can provide health benefits for children and adults, including relaxation, reduced stress, lower pulse rate, and lower blood pressure. Danielle Small, writing for homluv.com says that creating a woodsy retreat in your backyard and adding water and lighting to your backyard may provide a real treat for a homeowner at the end of a hectic day.

Buyers are well versed in health and wellness these days so adding a fountain, waterfall, or a small pond along with a comfortable seat in the backyard may very well appeal to them from a health perspective as well as from a lawn-eating, lower maintenance perspective. Fountains and waterfalls can be made to blend into nature or to stand out and make a statement. A few strands of star-like lights in the trees can add a sense of serenity, calm, and romance to the backyard too.

As a real estate investor, common sense, tried and true, backyard landscaping techniques combined with some of the newer wellness and outdoor-living trends may be a useful combination to know as you plan your project budget and marketing campaign.

The fix-n-flip loan program is one of my most popular real estate loan programs. Competition for houses is tight. The ability to get fast funds to buy and remodel a property is important. As a broker and a direct lender, it is my job to help you get a hard money loan easily and quickly. Private Lenders, not banks, are willing to help you fund your project based on the value of the property and its after renovation value. We have money to lend and you need money quickly. A perfect fit is out there.

Please give me a call or send an e-mail.

Patrick StCin, 512-213-2271

e-mail: patrick@REICapital.cash

Declutter for a Big Return

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When you first start a fix-n-flip project, you need to decide how much to invest on landscaping the front and back yards and include this in your funding request. If you decide to stick to the minimum, bring the yards up to the standards of the neighborhood but not much higher, you are looking at the declutter, clean, maintain, and disguise course of action.

Clutter weighs us down, stresses us out, destroys focus, and creates a terrible first impression. Clutter can also be hazardous and ugly. Most fix-n-flip investors, landscapers, and remodelers have a line item on their budget sheer for performing maintenance and cleaning up. This is the first level of landscaping, the cheapest and the most necessary. First impressions are so important that the labor and materials required to clean up the front porch and yard and the driveway and backyard should definitely be included in your renovation budget.

Make Safe

Inspect the yard for hazards like glass, pieces of metal, and chemicals and clean these up first so later workers and home buyers will not be injured. Clean out downspouts, gutters, and window wells, replacing any missing or damaged parts. Repair fences, level and repair walkways and patios, replace broken patio or porch railings or steps. Paint.

Declutter

Next, you can declutter the landscaping, digging or pulling out weeds and plants that are dead, refreshing mulch, planters, and container gardens.  Gardendesign.com recommends removing plants that are ugly, messy, or overgrowing a sidewalk or porch, simplifying the landscape. Since you have already made the property safe, you can pay high school students out of school for the summer to help you with these removal, maintenance, and cleaning activities.

Disguise

Gardendesign.com also lists some inexpensive remodeling tricks that can be done to or with backyard structures, like garden sheds, equipment boxes, and walls to disguise garbage bins or a neighbor’s driveway. These structures can be renovated into beautiful features instead of eyesores without too much expense using repurposed materials, like rough barn wood and antique hinges, antique doors and gates.

Adding Plants While Protecting Your Return

Now you may want to consider adding plants and amenities that will appeal to buyers. At one time you certainly would get back any investment you made plus some in landscaping both front and back. In an article written in 2013, “Landscape your Home to Sell: 5 Tips to Save Green,” Debbie Abrams Kaplan interviews real estate experts for bankrate.com on what landscaping techniques might sell a home faster. Margaret Woda of Maryland says that you could recoup as much as 215% of your landscaping investment, but only 68% of your kitchen renovation expenses.

On the other hand, Frank L. Lucco, a Houston appraiser and realtor, interviewed in the same article, says that installing a deck, patio, fire pit, outdoor kitchen, lighting, and fountains are a good ideas, but added that you should “install them if you want them, but you won’t recoup the costs.”

Reduce Maintenance

Add plants sparingly and add plants that grow well in the environment you are in, so they do not require too much water, fertilizer, or pruning. Add flowering plants to add a spot of color. Gardendesign.com suggests investing in an irrigation system, using perennial plants that come back every year and are adapted to the climate in a yard because these reduce the amount of labor and attention involved in maintaining a landscape.

Whether you add or subtract plants and amenities from the landscape, reducing your costs in the renovation should translate into reducing your buyer’s labor while they live in the home, an important selling point. Buyers at a minimum want to fit into the neighborhood they buy into without too much labor or additional outlay of money.  They also want to come home to a house that is safe and does not consume all their free time in lawn and garden care.

Our fix-n-flip loan program is one of our most popular real estate loan programs. Competition for houses to fix-n-flip is tight. The ability to get fast funds to buy and remodel a property is important. As a broker and a direct lender, it is my job to help you get a hard money loan easily and quickly. Private Lenders, not banks, are willing to help you fund your project based on the value of the property and its after renovation value. We have money to lend and you need money quickly. A perfect fit is out there.

Call me or e-mail me for a quick response.

Patrick StCin, 512-213-2271,

e-mail: patrick@REICapital.cash �

Multi-Family News on multihousingnews.com

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The multi-family housing market is a viable market segment in many metro areas as people move in from the suburbs to be closer to work and to entertainment. I scanned many articles and blogs on multihousingnews.com and am here sharing with you some of the statistics I found for our Texas market.

Austin

According to the “Austin Multi-family Report – Spring 2019” and an article on the “Top Multi-family Completions in Austin,” both by Anca Gagluc in the Multi-Housing News, the Austin multi-family market had a strong year in 2018 with rent growth of 4.5% despite 11,000 units coming online. The 11,000 units that were constructed and rented in 2018 were in the upscale lifestyle segment and the 20,500 units underway in 2019 are also targeted for that same segment of the market. 

The largest multi-family projects delivered through the end of May 2019 included

  • Bexley Round Rock, 330 Units, Round Rock
  • Hillstone at Wolf Ranch, 332 Units, Georgetown
  • Latitude at Presidio, 337 Units, Cedar Park
  • Crestview Commons, 353 Units, Austin
  • Terra, 372 Units, Austin

Multi-family housing can come in several classifications, affordable, lifestyle, senior, student, or worker housing. Most of the inventory discussed here is in the Lifestyle segment. A multi-family unit in the lifestyle segment is one that offers amenities that improve your daily life. These may be as simple as open areas and great walking trails or more expensive shared amenities like a stable, fitness center, or sauna and pool. The lifestyle property is supposed to enhance your life. It is in effect a neighborhood, or a community. Lifestyle communities are generally upscale in price, can even be luxurious, and often do not meet the need for affordable housing.

Austin added 36,800 jobs in 2018, up 3.5 % from the previous year.  Occupancy rates for Austin multi-family housing rose to 94.4% as of March 2019 and rent growth was 3.7% percent through April 2019.

Dallas-Fort Worth

According to the “Dallas Multi-family Report – Spring 2019” from Anca Gagiuc in Multi-Housing News, the Texas multi-family market continued to show plenty of supply, dampening rent growth, which was 2.8% year-over-year through March, slightly below the U.S. average.

More than 26,800 units were delivered in 2018 with an additional 44,700 underway as of March 2019.  The metro remained a nation leader in job creation last year, adding 102,500 positions for 2.6 percent expansion. Last year’s multi-family transaction volume was $5 billion.  Investors have already traded nearly $900 million in multi-family assets in the first quarter of 2019 at a per-unit-price of $105,032. The average Dallas-Fort Worth rent is expected to rise 4.3% in 2019.

Houston

According to the “Houston Multi-family Report – Spring 2019” from Laura Calugar in Multi-Housing News, the Houston multi-family market showed rent growth on a downward slide, but the market was still strong, underpinned by employment gains and economic expansion. Houston’s occupancy rate was 92.4%, down 140 basis points from the previous year, fueling fears of overbuilding.

Houston added 72,600 jobs in the 12 months ending February 2019. Last year’s transaction volume was $5 billion.  Roughly 14,000 units were under construction as of March 2019, most of that geared to high-income residents. The average Houston metro rent is expected to rise 2.2% in 2019.

REI Capital Resources is a funding source for SFR Fix-n-Flip, Fix-to-Rent, and Refinance projects as well as larger commercial projects such as office buildings, 5-40 door multi-family buildings, and many others.  These programs vary wide and far throughout the gamut of lending. Call or e-mail for more information.

REI Capital Resources Long-Term Rental Program

We offer asset-based and experience-based loans for long-term rental projects, including multi-family projects with the following terms: min FICO 650, BPO required, Up to 85% of purchase price, Cashout/Refinance up to 65% LTV (BPO), Max of 80% ARV, Interest rates starting at 6.5%, and points as low as 2.25%.

Give me a call or send an e-mail.

Patrick StCin, 512-213-2271,

e-mail: patrick@REICapital.cash 00000000 00

Experience

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When you see the term “experienced-based funding,” it means that in order to secure financing to expand your single-family, or fix-n-flip business, you will need to show the lender that you know what you are doing.  You need to provide proof of your experience in the area of your investment strategy and in the local real estate market.

If your investment strategy is to build and rent or build and sell, the lender will want to know that you have experience successfully building and selling homes in the neighborhood or area you are planning to build in. If your strategy is fix-n-flip, your lender will want to know that you have experience in renovation and know how to price the home so it will sell in the neighborhood it is in.  If your strategy is fix-and rent, the lender will want to know if you have experience renting or managing a rental or if you plan to partner with a company that has this experience.

As Samantha Goldberg, at Arbor.com reminds us, borrowers with understanding of the market and what types of property will rent at what levels will be attractive to lenders. Be prepared to support your investment strategy with a plan and experience.

She also suggests that securing financing with a lender you have done business with before is a good idea. Develop a long-term relationship with your lender, showing that you pay back your loans.

I’d like to be that lender.  Send me an e-mail and I’ll see what funding solutions REI Capital Resources can match with your needs.  We are always “focused on funding your success.”

REI Capital Resources Residential Construction Loan Program

We offer asset-based and experience based loans for residential construction on the following terms: Min FOCI 650, appraisal required, up to 90% of cost of lot + build, Up to 100% of construction costs if lot is free and clear, Max of 70% ARV, interest rates starting at 8.25%,and points as low as 3.5%.

Don’t forget, give me a call or send me an e-mail.

Patrick St.Cin

W – 512-213-2271
Patrick@REICapital.cash