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With current interest rates multiple times higher, numerous hotel property loans that were financed at historically low interest rates three or four years ago are now coming due. While there is no shortage of credit, sponsors with debt maturities that originated at +/- 3 to 4 percent are now faced with refinancing prospects of upwards of double digit rates. Coupled with the fact that many of these properties require implementation of product improvement programs, owners of a variety of lodging facilities will ultimately be forced to restructure an investments capital stack or dispose of assets. #hotelindustry #hospitalityindustry

Some useful insights into key lender concerns when financing particular real estate assets, including : hotels, logistics, data centres and residential property – also known as “beds and sheds”. Whilst this article is written more from a lender’s perspective, borrowers will also gain an awareness of typical lender requirements and considerations.

Interesting article regarding significant risks in hotel lending, including coverage, the expiration of interest-rate caps and fewer hotel lenders in the market. Largo represents Life Co lenders with capital specifically allocated for hospitality in 2024. Life Co loan programs do not require ongoing loan covenants and are fixed-rate products (locked at application), alleviating concerns with rate fluctuations. Whether a loan is maturing, you are acquiring a property or require a cash-out refi to complete a deferred PIP, we can quickly evaluate your loan request and provide feedback. Largo has the knowledge and lender relationships to help guide hoteliers in a challenging lending environment. #hotellending #hotelfinance #crefinance #hospitalityfinance

📈 Exciting Developments in Commercial Real Estate! Just read the latest Crittenden Report (Jan 8, 2024) and here are some key takeaways: 1. Hotel Construction Lending: There's an increase in hotel construction capital, indicating a favorable environment for hoteliers. Lenders are expected to extend more credit for new projects, with a focus on major brands and strong sponsorships. However, high construction and insurance costs, along with challenging lender underwriting, continue to be factors. 2. Active Equity Investors: The report indicates a cautious approach in equity investment. The first half of the year may see difficulties in JV and pref equity deals, but potential Fed rate drops could stimulate more activity later. Investors are focusing on deals with good debt and positive leverage, and new funds are targeting debt and distressed opportunities. 3. Leading Condo Lenders: Condo lending is seeing tailored approaches by various lenders. Romspen Investment Corporation, 3650 REIT, BridgeInvest, and others are providing significant funding with preferences for certain condo properties and loan conditions. Lenders are focusing on pre-sold projects, quality sponsorship, and defined exit strategies. These insights demonstrate the ever-changing nature of our industry and the importance of staying ahead of the curve. At Tower Capital, we're committed to leveraging this knowledge to provide top-notch services to our clients. #CommercialRealEstate #RealEstateTrends #InvestmentOpportunities #MarketInsights #TowerCapital

 Are options good for flipping I get a lot of people asking me about options and how you can use them for flipping houses. In my opinion, options are better for development because it gives you time to go and get approvals with council and stuff like that. It enables you to get these approvals while you don't own the property and therefore you don't have any purchase & holding costs. However, when you're flipping and you're needing to renovate the property there is a better way... A seller joint venture deal (also known as a takeover deal) is a deal where you have an agreement with the homeowner that you're going to come in and you're going to renovate the property while they still own it. In fact, you will never own the property meaning no purchase costs or holding costs. You will have an agreement drawn up and the correct security put in place by a solicitor. Typically, you will agree on a price that the seller will receive and they will receive this once the house is sold after renovating. You will fund the renovation and receive whatever it sells for over & above what you've agreed the seller will receive. You can also sweeten the deal by giving the seller more if the property sells over & above a certain figure. Once the agreement is in place, the homeowner moves out and you come in and renovate. The house is sold on completion of renovation and both parties are paid which is hopefully a win/ win for both parties. Because you never actually buy the property you are saving on Purchase costs (including deposit, stamp duty & settlement costs) Holding costs (mortgage repayments, utilities, insurance etc) I should mention however, these deals can be structured any way you like, therefore if you had a homeowner that needed help financially, you could take over the existing holding costs, this would be factored into your feasibility and therefore factored into how much the homeowner will receive from the sale. #AustraliaRealEstate #AussieProperty #RealEstateAU #PropertyInvestmentAU #HouseHuntingAU #PropertyTips #HomeBuyingAU #RealEstateDownUnder #AUPropertyMarket #AustralianProperty #InvestingInAustralia #AURealEstateTrends #PropertyMarketAU #PropertyInvestments #PropertyFlipping #PropertyDeveloper #RealEstateAustralia #FlippingHouses #InvestmentProperty #AustralianPropertyInvestment #PropertyInvesting  #AustraliaRealEstate #SydneyRealEstate #MelbourneRealEstate #BrisbaneRealEstate #AdelaideRealEstate

For hotels and pubs, estate financing plays a crucial role in property acquisition, development, or renovation projects. Whether through commercial mortgages, bridge loans, or mezzanine financing, securing the right estate financing can be instrumental in realising your hospitality business's growth objectives. Hotels and pubs should consider factors like financial health, property location, loan terms, and lender reputation when choosing financing for an estate. To mitigate risks, they can diversify investments, maintain insurance coverage, conduct due diligence, implement risk management strategies, and have contingency plans in place. #commercialfinancebroker #financebroker #commercialfinance #assetfinance #businessfinance #swordfinance

*PURCHASE OF THE WEEK* showcasing what our client achieved once we STRIKE even in this Hot Market!! ✅ The property acquired is in Metro Perth $425 purchase price. 683sqm land, valuation pre settlement at $490k 15.29% growth in the first three months already. ✅ The rental on the property is $500 per week, making the rental yield sit at 6.12%. ✅ This is potentially a two unit site where she is planning to do a co-living property at the back. And we will help her do that ✅ 16 km from Perth CBD ✅ Walking distance to Lake, playground, primary and secondary school, parks and two shopping centres ✅ 5 mins drive to the train station ✅ Easy access to city via direct access through 2 major roads which is 5 mins drive from the place. ✅ In the growth corridor 100% Our prestige client is a high income earner. She started investing in 2014 and was a very aggressive investor. Unfortunately while she was keen to invest early, she always picked the wrong property in the right locations. She invested into expensive apartments in Chatswood and Castle Hill etc. which were severely negatively geared and all costing her over $800k each. These apartments never grew and in some cases went backwards. While she was financially savvy and saved money to pay the debt down quickly, the growth she had anticipated never came which meant she was far away from her retirement goals. When we did the strategy for her, we kicked off with a portfolio review of what needs to sell and when and what needs to keep. And we also identified what price points and what properties she needs to target. She acquired her first property with us which has delivered 15% growth already and she acquired the second one which is a duplex under $700k with over 7% yield with retain and build strategy but that’s the story for another time! Now let’s try to understand why we think this is a growth corridor, let’s see some high level data  🔎 📈 Demand supply ratio of 57. That means demand is significantly higher than supply i.e. there are more people looking for properties than the available supply 📈 Days on market under 48. Coming off from 79 days previously 📈 Stock on market less than 0.98% 📈 Renters proportion 29% 📈 Vacancy rate under 0.45% If you are a passionate property investor, then let's chat property. Until the next purchase. Peace out!! #property #propertyinvestors #propertyinvestment #propertybusiness #realestate #realestateinvesting #propertyinvesting #propertyportfolio #propertystrategy #propertyinsight #propertymarket

Investor Life have some incredible property investment opportunities right now on our books to sell: On-market and Off-market opportunities ✅ All UK based 🇬🇧 Hotels between £3.75m and £5m that are very strong investments for Hoteliers, funds or UHNW’s 🏨 Unbroken freehold Residential Blocks between £1m and £5m, offering nice discount potential and a great track record of occupancy and rent flow. 🤝 Luxury apartments between £350k-£700k that will deliver substantial capital growth ⬆️ Sub-£250k STL apartments that will deliver 10-12% net yields year on year 👏🏻 Sub-£100k cash buys for those with mortgage fatigue that want a straightforward but high ROI. 😎 We’ve got all bases covered for our wide range of budgets, strategies and desires from our client base ✅ Wishing you all a great Q2 ahead, I’m hoping ours starts off with a multitude of offers 💥

Occupancy costs comprise a major line item for any business. And while location is important, the stability and long-term fit of your real estate is also critical.

My colleague Isabel Tinsley draws out the key considerations for a lender when financing particular asset classes. The article focuses for these purposes on those asset classes which we consider to be the most topical at the moment: hotels, logistics, data centres and residential property – also known as “beds and sheds”. Whilst this article is written more from a lender’s perspective, it should also be useful to borrowers in giving them an awareness of typical lender requirements and considerations. https://lnkd.in/eb9uyxu5