At a time when banks and other financial institutions have become cautious in lending to the real estate sector, AIFs have emerged as a popular vehicle for financing real estate projects. According to industry players, Category II AIFs are taking a lead in making funds available for realtors by subscribing to NCDs or non-convertible debentures issued by developers. Why are real estate developers going to AIFs but? Even though banks charge a lower rate of interest as compared to a AIF fund, banks mostly lend for construction activities. While and AIF fund can lend for land acquisitions, approval fees. Also even if banks agree to lend to realtors, yhe commercials turn out to be very difficult for real estate developers. Read full story here : https://rb.gy/0huhtb
Srushti Vaidya’s Post
More Relevant Posts
-
'Tis the season for cash out refinances! Our updated seasoning requirements make it easier for investors to tap into their property's equity. Let us help you make the most of your investment! 💰🏠 #CommercialFinancing #InvestmentProperty #RealEstateInvesting #DSCR #Kentucky #PrivateLending #RealEstate #Refinance #CashOut #Brrrr #Minolending
To view or add a comment, sign in
-
Dive into the world of real estate finance with the Loan-to-Cost (LTC) ratio! 🏗️💰 This key metric measures the percentage of financing provided by lenders compared to the total project cost, offering valuable insights into the risk and viability of construction and development ventures. Whether you're a seasoned investor or a budding developer, understanding your LTC ratio is essential for securing financing and mitigating risk in the dynamic world of real estate. Unlock the power of financial analysis and take your projects to new heights with the LTC ratio! 💼✨ #RealEstateFinance #LoanToCostRatio #ConstructionFinance #InvestmentInsights #mrei #mayfairrealestateinstitute
To view or add a comment, sign in
-
Are you getting the best service? Is your broker looking after you or themselves? Even if you are not sure, get in touch. #claritydevelopmentfinance Example of Development Rates Current rates are starting at around 4% over base for up to 60% Loan to GDV and around 5% over base for 65%. LTGDV up to 70% Loan to Cost up to 90% Rates from under 9% PA (Under 60% LTGDV) Mezzanine and Equity Finance 95-100% of funding available on a case by case basis - experienced developers only. #bridgingloan #developmentfinance #residentialmortgages Matthew Underhill
To view or add a comment, sign in
-
Specialist Finance Broker: Helping SMEs, Property Investors & Developers with funding - BTL, Bridging, Commercial & Development Finance.
🚨 Deal Funded 🚨 This client used bridging finance to secure a portfolio of 6 properties, at below market value. After completing some minor improvements to the properties, they will refinance to a long term product, and use their funds to move onto the next deal. Looking to use bridging finance to fund your next deal? Get in touch! 📞 - 07508070003 📥 - r.corbett@gofinancialservices.co.uk #Property #Finance #BuyToLet #BridgingFinance #PropertyFinance #Investment #PropertyInvestment
To view or add a comment, sign in
-
🔔 Deal of the Month 🔔 At CG24, we facilitate access to property investments and offer attractive alternatives to conventional investment products. Our ‘Deal of the Month’ enabled investors to participate directly in an exciting property development. 💼 Project highlights 🔒Security: Existing investment property using a subordinated mortgage as collateral 👍Purpose: Additional liquidity for the optimisation of an existing property. 📈Sustainable modernisation and thus increase in value. 🌟Attractive financing: Net yield of 6.2% p.a., term of 6 months, AA rating. With us, you invest directly and benefit from exclusive mezzanine financing and innovative property investments via our platform. You can find our current investment opportunities here: https://lnkd.in/dmZnA6j5 #Immobilien #Familienunternehmen #Renditeliegenschaften #Finanzierung #Investment #DealOfTheMonth #Rendite #propertyinvestments #property #financing #yield #investmentopportunities
To view or add a comment, sign in
-
Extend and Pretend Disappoints Distress Investors: I am personally an investor in the Oaktree Distress Fund and to date the Fund has made no capital calls. Read below from Origin Investment New Letter: "Today, real estate investors large and small, including Acore Capital and Oaktree Capital Management, have raised multibillion-dollar funds to capitalize on distress in real estate. They’re counting on lenders to foreclose on properties or sell bad loans at a huge discount, accepting loan losses and negatively impacting their earnings. These investors largely have been disappointed so far. Lenders are taking a page out of the GFC playbook and kicking the can in hopes of brighter days when increasing property operating income and lower interest rates re-inflate property values, and the refinance thaw commences. But lenders can only extend for so long. And as each Federal Reserve meeting passes without a cut in interest rates, the pressure for lenders to act increases. Time will tell if extend and pretend, round two, is a success for lenders or if distressed investments funds will once again post once-in-a-generation returns. "
To view or add a comment, sign in
-
CMBS is often a misunderstood asset class and, for the discriminating investor, offers pockets of opportunity even in today’s challenging commercial real estate marketplace. Portfolio Manager, @Robert Neighoff, recently spoke with @Bendicte Gravrand from @Opalesque to set the record straight on CMBS and why he believes the present moment is ideal for alternative investors to use CMBS to capture the hidden alpha opportunity. You can read the interview here: https://lnkd.in/emKQ-YD3 #CMBS #CRE #alternativeinvesting #hedgefunds
To view or add a comment, sign in
-
IGIS fund defaults on loan linked to #Trianon tower in #Frankfurt 📚 This is a textbook case expected to repeat as many other standstill agreements will come to an end 🏢 in Europe... Default on Loans 💸: The SPV confirmed the default after failing to negotiate a loan restructuring plan with lenders by the May 31 deadline. Creditors subsequently refused to extend the standstill period. Tenant Departure 🚪: The fund faced an approximate 80% loss last year after Deka Bank, which occupied 60% of the building, did not renew its lease. Value Depreciation and LTV Surge 📉: Deka Bank's exit led to a sharp depreciation in the building's value and an increase in its loan-to-value ratio (LTV) to over 65% financial covenant. Cash Flow Crisis 🔄: By the end of 2021, the SPV fell into a cash trap. Attempts to Sell 🏢: IGIS Asset decided to sell the tower and extended the fund’s expiration by two years in October last year. No buyer has been found. #RealEstate #TrianonBuilding #CREfinance #Germany #DekaBank #LoanDefault #OfficeMarket #Bankruptcy 💼📊 https://lnkd.in/eXnKGPW6
IGIS fund defaults on loan linked to German office - KED Global
kedglobal.com
To view or add a comment, sign in
-
Account Executive @ Loan Mountain Capital | Private Lending | Fix & Flip and New Construction Investment Real Estate Financing
'Closing of the Month' for June goes to a Duplex we just refinanced into a 30-year DSCR. This was for an out of state investor who just finished doing some light rehab on the property. Both units occupied, bringing in $1,000 each monthly. Cash flowing $1,034/month after the P&I of $965.94 Are you or someone you know looking for diversified investment opportunities through real estate and want some numbers ran on a rental property? Send me a message! #SmallBusinessLending #ClosingOfTheMonth #AlternativeLending #InvestmentRealEstateFinancing
To view or add a comment, sign in
-
Specialist Finance Broker: Helping SMEs, Property Investors & Developers with funding - BTL, Bridging, Commercial & Development Finance.
🚨 Deal Funded 🚨 This client used bridging finance to secure a property in East Lothian, with scope to add significant value. Once the extensive refurb is complete, they will refinance to the new value, not only releasing their initial cash investment, but potentially releasing some profit to move onto the next deal! 📈 Looking to use bridging finance to fund your next deal? Get in touch! 📞 - 07508070003 📥 - r.corbett@gofinancialservices.co.uk #Property #Finance #BuyToLet #BridgingFinance #PropertyFinance #Investment #PropertyInvestment
To view or add a comment, sign in