Grant R.’s Post

As we head into the 4th quarter, there are a few housing market headwinds to watch out for: 📉 Seasonality - With the holidays approaching, housing market activity typically slows down. 💸 Student Loan Resumption - Payments restart next month after a 3-year government deferment. 🏦 Soaring Interest Rates - We're seeing 23-year highs now at the end of August 2023. Yet, with all these factors, I'm willing to bet that Florida still leads the pack. I predict we'll outshine other major metros in terms of transaction count, closed volume, and price growth. 🌴 Let's wait and see! #FloridaBoy #sunshinestate #housingmarket #commercialrealestate

HUD Multifamily needs to step up its game in the current housing crisis. With initiatives like RAD and the pending EPA GGRF National Clean Investment Funds (NCIF) offering below-market interest rate loans for affordable housing, the MAP programs should not be lagging. Check out more details here: [Link to article] #HUD #Multifamily #AffordableHousing #RAD #EPA #NCIF

The Levelling Up Home Building Fund Home England is providing development loans from £250,000 to £10 million to housebuilders based in England who are finding it difficult to borrow from traditional lenders. Whether building for sale or rent, the loans can be used to cover the development costs. Community-led housing projects, serviced plots for custom and self-builders, off-site manufacturing, new builders, and groups of small firms working together can all access this financing. Home England state that their flexible approach, along with their in-depth knowledge of the housing sector, put them in a good position to help businesses deliver homes. The Fund is available to UK-registered corporate entities and limited liability partnerships if they plan to build five or more homes on a site in England. A controlling interest in the land along with outline planning permission is also a must. More information on how to apply can be found in ... click/tap the link to read more https://lnkd.in/eNypt5-r #homsengland #LevellingUpHomeBuildingFund #selfbuilders #communityledbuilds #businessadviceburton

A10 Capital is still actively lending on both bridge and permanent loan transactions. Commercial real estate lending is facing a significant decline, which could lead to a rise in defaults on expiring debt and a sharp drop in new construction of various property types. This shift is attributed to several factors, including rising interest rates and increased economic uncertainty. Here are the key points to understand this situation: Commercial real estate lending has been decreasing since the first half of 2022 due to rising interest rates and recession concerns. Higher Treasury bond yields have further discouraged lenders from making new loans, casting doubt on the valuation of various property types. Bank commercial property lending saw a decline in the first two weeks of October, a rare occurrence since 2014. Other debt providers are also retreating, with a significant drop in loans converted into commercial mortgage-backed securities in 2023. The entire commercial property debt market, including banks and nonbank lenders, increased less than 1% in the second quarter, the lowest since 2014. Office owners, in particular, are struggling to refinance expiring loans at higher rates, and other commercial borrowers like apartment buildings and warehouses are also affected. The recent increase in 10-year interest rates has created uncertainty in the market, leading to a slowdown in lending and capital market challenges. Many private debt funds are grappling with raising capital and focusing on existing borrowers who face difficulties refinancing low-interest-rate loans. While loans are still available, they come from fewer lenders and at a higher cost. Falling demand from investors, coupled with lenders losing interest in new deals, has contributed to the decline in lending. Small and regional banks are particularly cautious about commercial property investments, given past failures. Construction loans have been hit hard, with forecasts indicating a significant decline in commercial property construction starts. Legal experts also note that numerous commercial projects are on hold or being postponed across the country due to financing difficulties, impacting various sectors of the real estate market. In summary, the commercial real-estate lending landscape is currently experiencing a contraction due to rising interest rates and economic uncertainties. This decline is affecting both new construction and the ability of property owners to refinance their existing loans, with various property types feeling the impact. While loans are still available, they come with higher costs, reflecting a shift in the market dynamics and increased caution among lenders. #wsj #cre #cref #economy #mba https://lnkd.in/dP4c7beB

INDUSTRY SPOTLIGHT: The Cook Government in WA has launched the Builders' Support Facility, a $10 million interest-free loan program to help residential builders finish homes that have been under construction for more than two years. Eligible builders can get interest-free loans up to $300,000, with a maximum of $60,000 per property. 🤑 This initiative is in response to delays caused by rising construction costs. The goal is to support builders, prevent project delays, and avoid financial difficulties. The program is part of the government's larger plan to improve housing availability and affordability. 👷♂️🏗️ To qualify, builders must be solvent, based in WA, and have at least four years of continuous business. Registration of interest is open until January 31, 2024, and applications will be processed on a first-come, first-served basis through the following link: https://lnkd.in/gBTnGp8w 📆 The government is hoping this will provide a short-term boost to builders facing financial challenges and minimise the impact on the construction industry. 🙌 #construction #tradiesdoitbest #constructionnews #industryspotlight #industrynews #tradiesaustralia #builder #building #wa #hia #buildersuspportfacility #governmentloan #techskillacademy

The financing obstacles facing developers (detailed in this article by Patricia Kirk) are a great reminder that the Federal Housing Administration and HUD Office of Housing's 221(d)4 program remains the best financial tool to build #multifamily housing. Here are some take-aways: - The reluctance of banks to lend for CRE projects is primarily due to the low level of loan payoffs they’re experiencing, which limits the amount of capital available to recycle back into the lending market. - Alternative capital sources come at a significantly higher price than bank financing. - Debt funds have tightened their underwriting standards. - Many construction lenders have rolled back their loan-to-cost ratio from 75 percent to 50 percent or even less. - Banks are tightening terms and adding things to term sheets that weren’t there 24 months ago, such as deposit relationships, which require project sponsors to deposit a certain amount of money in their banks before their loans are approved.

✍️BUILDERS' SUPPORT FACILITY TO HELP COMPLETE STRANDED HOMES. 🏠The Cook Government has announced the establishment of an interest free loan facility to help residential builders complete unfinished properties, and get Western Australians most affected by delayed construction timeframes into their new homes. ✅$10 million loan facility to support the completion of stranded homes in WA. ✅Eligible residential builders will have access to interest free loans of up to maximum of $300,000 (up to $60,000 per property), with payments made in instalments to stimulate more completions. ✅Scheme will assist completion of homes that have been under construction for more than two years. ✅ Initiative is targeted and measured to support builders and home buyers left stranded. 📌Source: https://lnkd.in/g8mnE2Fc 🏡 MANISH BARGOTI 📲 0451 199 947 📧 manish@bargotirealestate.com.au

Commercial land loans are a fascinating aspect of the real estate and financial sectors, offering unique opportunities and challenges for investors and developers. Here are some interesting points about these loans: 1. Higher Risk, Higher Reward. Lenders view commercial land loans as higher risk compared to residential mortgages or loans for developed properties. The land itself does not generate income until it is developed, making the loan inherently riskier. As a result, interest rates on these loans are generally higher. However, for investors and developers, the potential returns can be significant once the land is developed and generates income. 2. Comprehensive Due Diligence. Obtaining a commercial land loan involves extensive due diligence. Lenders require detailed plans for the intended development, including feasibility studies, environmental assessments, zoning regulations, and market analysis. This thorough vetting process helps mitigate the risk for lenders by ensuring that the borrower’s project is viable and likely to succeed. 3. Equity Requirements. Down payment and equity requirements for commercial land loans are typically more stringent than for other types of real estate loans. Borrowers might need to provide a substantial down payment, often ranging from 40% to 50% of the land’s value. This equity stake helps ensure that the borrower is committed to the project and has a financial buffer to manage potential setbacks. 4. Impact on Urban Development. These loans play a crucial role in shaping urban landscapes. By providing the necessary funds to purchase and develop land, they enable the construction of commercial properties that can drive economic growth, create jobs, and contribute to the community's overall development. Successful projects can transform underutilized or vacant land into bustling commercial hubs. 5. Challenges and Considerations. Borrowers face several challenges when securing commercial land loans, including fluctuating market conditions, regulatory changes, and the complexity of land development processes. Proper planning, financial prudence, and a clear understanding of the local real estate market are crucial for overcoming these challenges. To find out more about land loans, contact us here: www.iloanfund.com #assetbasedloans #businessfinancing #businessloans #businesspurposeloans #commercialfinancing #commerciallending #commercialloans #DSCRloans #dscr #debtservicecoverageratio #fixandflip #fixandfliploans #fixtorentloans #investorloan #landloan #personalloans #smallbalance #smallbalanceloans

🏡 Curious about USDA Direct Loans and how they can help you achieve your dream of homeownership? Join us on October 5, 2023, for an insightful webinar! 💡 Learn the ins and outs of USDA Direct Loans, from eligibility requirements to application processes. Discover the benefits, subsidies, and LOW interest rates and closing costs that are available. 🌱 Understand how these loans contribute to rural development and housing accessibility, and explore alternative financing options. 💬 Have questions? We've got answers! Don't miss this opportunity to get informed and make sound housing decisions. Register now at the link in the comments. See you there! 👋🏠 #USDAloans #Homeownership #Webinar #RealEstateEducation

For real estate developers, land development loans are an essential tool in securing the funding needed to launch new projects. However, many people are unfamiliar with how these loans work and what sets them apart from other financing options. Here's what you need to know about land development loans! Unlike traditional mortgages or loans that are secured by existing properties, land development loans are used to finance the purchase of raw land. These loans are typically short-term, ranging from six months to several years. During the development process, the land development loan funds are disbursed to finance the upfront costs associated with construction, such as zoning or permitting fees, site preparation, and other soft costs. Once the project is complete, the borrower can then choose to repay the loan through the sale of the developed land or by securing long-term financing. While land development loans can offer significant advantages for developers, such as more flexibility, faster funding, and greater control over the development process, they also come with higher risks than traditional lending options. Borrowers must be able to demonstrate the viability of their project and their ability to repay the loan in a relatively short amount of time. If you're considering a land development loan, it's important to do your research and work with a lender who understands the unique challenges and opportunities involved. By carefully planning your project and securing the right financing, you can turn your real estate development dreams into reality.    #landdevelopmentloans #realestatefinancing #propertydevelopment #constructionfinance #realestateinvestment #wealthbuilding #hardmoneyloans