Patrick Lai’s Post

I’m going through and providing updated valuations of properties I sold a few years ago. I already know this however, the cost of utilities and insurance is considerably higher from just the previous 1-2 years when reviewing the financials. For example the premium on the policy for one of my complexes went from $13K to $19K in just three years with no claims against it. Also, rents are not keeping up with this rate of inflation and increases to operating costs. It’s always intriguing to see real numbers fromclients and your actual investments. I believe this is one of the reasons NNNs, DSTs, or investments where you can pass through or bill back tenants are in high demand and trading for lower cap rates. This is my “captain obvious” post for the week.

Volume tells the story…quick read of 24’ Numbers Total Market: $106B (+170%) Single-Borrower: $70B (dominated by quality assets) Conduit/Fusion: $32.9B (the quiet giant awakening) Property Plays: Hotels led: $25.6B (+204%) Multifamily surge: $21.9B (+1,118%) Industrial steady: $19.7B The real signal? That 436% jump in floating rate to $49B. Institutions positioning for lower fixed rates in the future - let’s see how that plays out in 25… 2025 plot twist: Watch Conduit. The refinancing wave isn't a secret, but the scale might surprise you…. #CMAAlert #CMBS #WallStreet #CRE #Refinancing #InstitutionalCapital Source: CMA Jan 10 2025

Fixed rates are dropping 📉 ⬇ 5.55% p.a. for owner occupier P&I 2-year fixed term at ≤70% LVR 5.69% p.a. for owner occupier P&I 1-year fixed term at ≤70% LVR 5.69% p.a. for investment P&I 2-year fixed term at ≤70% LVR 5.85% p.a. for investment IO 1-year fixed term at ≤70% LVR Award-winning bank + lightning-fast turnarounds RBA to cut in Feb already being priced in? Next Steps With rates steady and the property market still active, now is a great time to review your financial strategy. Whether buying, refinancing, or investing, staying informed is key to keeping your loans sharp.

Catch up on October’s top 10 finance stories that shaped the property sector: 1. Property share prices see a strong upswing in Q3: https://ow.ly/ammK50TYbLF 2. Industry figures slam Budget business rate measures as government launches consultation: https://ow.ly/olbj50TYbLC 3. Barratt Redrow outlines growth strategy to become UK’s largest housing group: https://ow.ly/AtZ050TYbLy 4. Annual profit and completions tumble at Bellway: https://ow.ly/qw4g50TYbLw 5. Home REIT posts delayed 2022 results to reveal £475m loss: https://ow.ly/eLuy50TYbLu 6. Vistry forecasts £115m profit hit after misjudging costs on nine schemes: https://ow.ly/VGHN50TYbLA 7. Hammerson launches £140m share buyback programme: https://ow.ly/lyuc50TYbLE 8. Over £8bn of developer contributions sat in local authority bank accounts, HBF finds: https://ow.ly/BEbj50TYbLv 9. Lenders competing fiercely for financing amid 10% CRE lending drop, says Bayes: https://ow.ly/MV2X50TYbLx 10. M&G supplies £200m of debt for Metrobox and PineBridge Benson Elliot: https://ow.ly/BSpb50TYbLt

Choppy waters: A year in review and what 2024 might hold for the industry Our latest blog post takes a frank look at years past and present in the peer-to-peer, property finance, and broader property industries. Challenges are on the horizon, but positive outcomes are still available to investors and well run platforms. https://lnkd.in/gbvyzrUE #p2plending #propertyinvesting #ukinvestment #ukproperty #propertyfinance

Net property income of $64.5 million for the quarter is 4.6% higher q-o-q but 0.2% lower y-o-y, a result of property expenses more than doubling y-o-y to $12.5 million during the quarter.

Choppy waters: A year in review and what 2024 might hold for the industry My latest blog post takes a frank look at years past and present in the peer-to-peer, property finance, and broader property industries. Challenges are on the horizon, but positive outcomes are still available to investors and well run platforms. https://lnkd.in/gbvyzrUE #p2plending #propertyinvesting #ukinvestment #ukproperty #propertyfinance

Feb rate reductions are starting

Despite lingering headwinds, Lument CEO James P. (Jim) Flynn believes 2025 will be a positive year for multifamily lending, driven by improving fundamentals, increasing investment sales, and a growing wall of maturities. Read MFE’s annual debt outlook article for his insights. https://lnkd.in/evVsZuJW #MultifamilyFinance #Debt #2025Outlook

REITs?!!!! Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-generating real estate across a range of property sectors. They allow individuals to invest in large-scale, income-producing real estate without directly buying property. Key Aspects of REITs: 1. Diversification: REITs provide exposure to a diversified portfolio of properties, reducing individual risk. 2. Liquidity: Shares of publicly traded REITs can be bought and sold on stock exchanges, offering liquidity similar to stocks. 3. Income Generation: REITs typically pay out a high percentage of their taxable income as dividends, providing a steady income stream. 4. Access to High-Value Properties: Investors can gain access to high-value properties and markets that might be out of reach individually. 5. Professional Management: REITs are managed by professionals, ensuring expert handling of the properties. Types of REITs: A. Equity REITs: Own and operate income-generating real estate properties. B. Mortgage REITs: Provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities. C. Hybrid REITs: Combine the investment strategies of both equity REITs and mortgage REITs. Benefits: Steady Income: Regular dividend payments can provide a steady income stream. Growth Potential: REITs can appreciate in value over time, offering capital gains potential. Tax Advantages: REITs are required to distribute at least 90% of their taxable income to shareholders, which can result in tax advantages. #realestate #investment #realestatedvelopment #REITs #liquidity