Don’t Self-Sabotage as a Real Estate Investor, Rates are RISING!

Rates are heading up rapidly! Since 9/1/2021 when the best 30yr fully amortized loan interest rate was 3.625%, there has been a steady increase.  Within the past 7 days, the same institutional lender has increased its rates to 5.750%, the lowest possible rate available.  This is a 2.125% increase in approximately 6 months.  Interest rates will remain volatile during this period of inflation.  As the Fed works to rein in inflation by adjusting the rate upward, we will continue to see these increases.

What can be done to mitigate these increases?

Photo by Samson Katt on Pexels.com

When your Loan Officer requests Documents please be expeditious in sending them.  We are seeing investors delay signatures, sending documents, and poor response times which have led to as much as a 1.00% to 1.25% increase in the interest rates.  Investors want to see the mailbox money flow in with a minimum of effort, that is understandable.  But when it comes time to purchase or refinance a property, please make sure that your entity documents are in order.  This means signatures are where they should be (the biggest issue we see today), That a clear chain of ownership of the entity is evident.  Lawyers like to hide the ownership trail to minimize exposure to risks.  Lending institutions want to know exactly who they are lending to, minimal smoke and mirrors make the organizations with the money happy.

Some lenders offer a rate buy-down.  The basic way this works is that by paying an increase in the origination points to the lender the interest rate can be lowered.  Generally, this is a ratio of points to interest buy-down.  An example could be:

The ratio is 0.333% per Point.  The maximum buydown is 2 points or 2 times the buy-down points offered.

Interest7.00%7.00%7.00%
Origination Pts0%1%2%
Buy Down0.000%0.333%0.667%
New Interest Rate7.000%6.667%6.334%

There are other lenders that offer a similar buy down at a rate of 0.5% maximum for an increase in the lender’s origination points of 1.5%.  This buy down can be bought in 0.125% increments if that works for your program.

BUT WAIT THERE IS MORE!

We do have better news if you are doing a BRR strategy and not just a regular refinance and are open to a 5 or 7 year ARM. Call us today to find out more about all our options.

If you need funding, apply now.   

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http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

Updates to our Loan Offerings – More for you as a Real Estate Investor

We are a direct lender and financial intermediary, which gives us the opportunity to place the most competitive financing options in the market.  Below is what we specialize in.  We look forward to winning your business and creating a long-term relationship: Ground-Up New Construction ($200K to $45M – Loan Amount), Fix/Flip Projects, Long-term Rental Property Acquisitions and Refinances, Airbnb or vacation rental acquisition and refinancing, and Commercial Property Lending including Apartments. Here are more details of our core lending products.

1. Fix and Flip Loans – up to 90% Of Purchase with 100% of Rehab, experienced, or first-timer investors

2. BRRRR – Buy, Rehab, Rent, Refinance and Repeat loans are available.  Loan programs include 5/1 ARM, 7/1 ARM, 30 Year Fixed Rates.

3. Rental Property Loans – Purchase – Refi – Cash Out.  SFR 1-4 units and AirBnB properties.  Loan programs include 5/1 ARM, 7/1 ARM, 30 Year Fixed Rates.

4. Ground Up Construction Loans

5. Portfolio Loans for SFR – 2-4 units and Multi-Family

6. Bridge Loans – Loans to Pay off current Lender – 1-2 Year Loans.

7. Multi-Family Loans from 5 doors to 300+ doors.  Value-Add Purchase, Turn-Key Purchase, Bridge, New Construction, Agency and non-Agency loans

8. Commercial and Mixed-Use Properties

9. Haz. Ins. Co you can use. https://affiliate.nreig.com/RichardTurner­

We are also very excited to be working with a new lender that will provide funding for the BRRRR investment concept.  Basically, the loans look like this:

  • LTV – up to 88% of Cost / 68% LT Market Value
  • DSCR – 1.20 based on Market Rents (1.30 if less than 3yrs rental experience)
  • Experience – Min 5 flips or rental / 5yr look back
  • Loan Terms  – 7 yr  (5yr Fixed+2yr Floating)
  • Interest – Intro Rate 4.9% (increases with credit below 740, max 5.8%), First-year – no interest payments (rolled into loan principal)
  • Loan Terms – 12yr (10yr Fixed + 2 yr Floating)
  • Interest- Intro Rate 5.2% (increases with credit below 740, max 6.1%), First-year – no interest payments (rolled into loan principal)
  • Origination Points – 3% (2 to lender + 1 to us)  need to get a Broker/Client Agreement at 1%
  • Prepayment – Step Down 3-2-1  (No PPP if Origination Points Increased by 1%)

The lender will work with the following background issues:

  • Litigation with another Lender
  • Bankruptcy (10yr lookback)
  • Foreclosures (since 2012)
  • Delinquency with suppliers
  • Outstanding RE Liens
  • RE Loan Delinquency

This lender is geared up to work with contractors and investors.  They understand the issues they come into and have a system that helps to prevent further erosion of the borrower’s track record or credit.

One of their claims is that 95% of applications pass thru the system to get a loan.

If you’re planning to buy a distressed property, now may be a good time to buy. Just make sure you’re aware of the risks and understand what you’re getting into.  Distressed homes offer a unique buying opportunity for real investors, but the average home buyer should probably look elsewhere. 

If you need funding, apply now. I am working online with the rest of you.  

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http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

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Need Rental Acquisition Funds? How to get INSTITUTIONAL FINANCING!

This sounds rather ominous – INSTITUTIONAL FUNDING OF A RENTAL PURCHASE.  There is no creativity in this type of transaction.  It is a clean method of purchasing a property without the worry of what the underlying bank may do if the truth gets out. This post will cover:

  • So how do you get one of these loans?
  • How much money is needed?
  • Does my credit need to be pulled?
  • Does it have to be in an entity?
  • Do I have to put my first-born child up as collateral?

Get Your Affairs in Order

Having your documents ready to go at a day or two notice should be paramount to running a good solid business.  Knowing what the business is, how it was formed, documents are signed, financials are essential! 

Entity

  • First of all – if there is a signature line in your entity formation documents, make sure all principals have signed the document.  About 60%-80% of entity documents are left unsigned.
  • Secondly, the entity must be filed with the Secretary of State, in the State of Organization.  If the entity is working in another State then a DBA should be filed with the appropriate State.
  • Operating Agreement (OA)
  • Articles of Organization or Incorporation (Articles)
  • Resolution – A resolution that emphatically states who has the authority to sign financial documents is a must.  If this activity is either not in the OA or is poorly worded, then a separate resolution should be written, signed and filed with the appropriate Secretary of State’s office.

Assets

  • Financial Institution’s statements.  These are basically the bank statement for the entity, banks statements, investment account statement, retirement account statements of each principal.  Yes, the funding institution wants to know there are funds available to continually make payments especially when the property is vacant or has been damaged and in being repaired.
  • The cash value of a whole life or universal live insurance policy is also considered an asset.  Please remember that the face value of the $1.0M policy means nothing to the underwriter, only the amount of cash that the insurance company states is available to be surrendered, if and when requested.

Experience

  • Starting out is understood in the lending business.  Regardless of this being the first property or the 100th property the lender needs to know your level of experience.
  • Assuming the only property type you have investing in is rentals then your rent rolls, the last 12 months of rents, a balance sheet and a P&L statement should be close by.
  • Management experience is also key.  Regardless of the properties being managed by a 3rd party or yourself, this is something the lender needs to understand.
  • If the previous investments were fix and flips, then please provide a list of those properties, with the purchase cost, rehab costs, selling price and gross profit.
  • If you have partnered with other investors via an entity then these count towards experience.
    • To be considered as experience, the principal in question must have had significant ownership of the previous /partnered entity, approximately 25% or more.
    • JV partners are discounted but can be provided to show similar activity.
  • As a general rule the more rental experience the higher the Loan to Value of the loan.

Principals

  • Copy of your Drivers License or other government picture ID.
  • Either an application or a Personal Financial Statement are required
  • Authorization to pull your credit.
    • Credit drives the interest rate.
    • The higher the score the lower the rate.
    • Min Score is 660 for most lenders.
    • Some will go much lower to 500 but a higher interest rate will reflect this score.
  • The institutions are truly not interested in using your first born as collateral!

Property

  • Will need an appraisal
  • Depending on the experience of the principals the maximum LTV could be as high as 80%
  • The purchase contract is required
    • Any Amendments, Addendums or Assignments will be required
  • Lease documents
    • If there is a lease in place that will be sufficient
    • If a new lease has been signed then make sure that all attachments, Lead Based Paint forms, and As Is Condition forms are included.
  • All pages of the lease need to be sent in.
  • What is the target closing date?

Title Company

  • What is the name of the title company?
  • Who is the person(s) in this office that will handle the closing?
  • What is their Address?
  • What is their phone number?
  • What is their email?

Insurance Agency

  • Who is the insurance agent?
  • What is their Address?
  • What is their phone number?
  • What is their email?
  • Minimum Coverages (as of January 2022)
    • Greater of Building Replacement Costs or the Value of the Loan
    • Min Liability is $500,000
    • Fire and Hazard Coverage
    • Min 6 months Rental Loss Coverage

So, what does this same purchase look like in an institutional loan?

“Subject To”Institutional
ARV$200,000$200,000
Purchase Price$25,000$175,000
Credit Score740
LTV80%
Down Payment$35,000
Loan$165,000$140,000
Interest Rate4.00%4.25%
Term30 years with only 25 yrs remaining30 years
Payment$788.00$689.00

The upsides to this transaction are many:

  • Arears are covered making this a clean deal, cleared off the books of the previous bank
  • Lower monthly payments
  • Possible immediate tenant
  • Lender has no reason to call the loan
  • Refinancing to pull equity at your desired timing not an underlying bank

The downsides, to name a few, are:

  • $10,000 more in down payment
  • May take more time to close

If you’re planning to buy a distressed property, now may be a good time to buy. Just make sure you’re aware of the risks and understand what you’re getting into.  Distressed homes offer a unique buying opportunity for real investors, but the average home buyer should probably look elsewhere. 

If you need funding, apply now. I am working online with the rest of you.  

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http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

Photo by Kindel Media on Pexels.com

Texas’ hot housing market might be cooling down … or not?

As providing funding for real estate projects which include new construction as well as fix-n-flip loans and long-term rental loans, we keep our eyes on the market economics that might impact our clients.

The pandemic price run-up for homes has been helpful for some of our investors especially to mitigate the rising cost of lumber and other materials. In major Texas cities from the end of 2020 through much of 2021, the median house price soared!!! Here’s the difference in cost between September 2021 and September 2022:

  • D-FW: $298,884 (Sept. ’20) to $350,000 (Sept. ’21). Change: + $51,116 
  • Houston: $261,000 (Sept. ’20) to $300,000 (Sept. ’21). Change: + $39,000 
  • San Antonio: $255,000 (Sept. ’20) to 294,950 (Sept. ’21). Change: + $39,950 
  • Austin: $350,318 (Sept. ’20) to $448,00 (Sept. ’21). Change: + $97,682 

The A&M researchers expect the price per square foot to keep going up in the next several years, but not anything like what we have just seen. Home prices have risen and so have property taxes. Landlords want to pass costs to renters and renters are not immune.

New research from the Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA) found that renters were about 3X more likely than homeowners to miss payments this year.  Renters may be vulnerable to the expiration of expanded pandemic unemployment benefits.  Therefore, we recommend our long-term buy-and-hold investors be sure to run background checks on potential renters.

From Texas Real Estate Research Center at Texas A&M University: “With lumber prices falling, total Texas housing starts increased for the second consecutive quarter. Zonda data revealed roughly 38,000 homes broke ground in the Texas Triangle in 3Q2021, pushing single-family housing starts up 3.9 percent on a quarterly basis amid strengthening economic conditions and robust housing demand. Housing starts in North Texas and Austin reached an all-time high, increasing 8 and 13.8 percent, respectively, from last quarter. “

Read more stats here:  https://www.recenter.tamu.edu/articles/technical-report/Texas-Housing-Insight

Lastly, the average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey was 3.11% during the week ending December 2, up one basis point from the previous week. The rate averaged 3.07% in both October and November. All rates quoted have fees and points averaging 0.6% to 0.7% of the loan amount.   

If you’re planning to buy a distressed property, now may be a good time to buy. Just make sure you’re aware of the risks and understand what you’re getting into.  Distressed homes offer a unique buying opportunity for real investors, but the average home buyer should probably look elsewhere. 

If you need funding, apply now. I am working online with the rest of you.  

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http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

Photo by Monstera on Pexels.com

10 Real Estate Investor Blogs You Should Be Reading in 2021 and 2022

10 Real Estate Investor Blogs You Should Be Reading in 2021 and 2022

Whether you’re a seasoned investor or are just acquiring your first property, real estate investment blogs are an excellent source of information. From rental properties to fix-and-flips to REITs, there’s a blog — and usually a partner podcast — that will give you the scoop on all things real estate investing. 

There’s a universe of knowledge about real estate out there, and just being willing to seek it out can accelerate your expertise far beyond your years of experience. The best place to start is the internet’s most prominent real estate investor blogs. What we are reading at REI Capital Resources and recommend you do too!  Take a look at our top 10 picks for blogs to follow:

1. Afford Anything

Blogger: Paula Pant

Focus: Rental properties

A former journalist, Paula Pant achieved financial freedom through real estate, and now she teaches others how to do it through her blog and podcast. Her philosophy? You can afford anything, but not everything, so you’ll need to take control of your money to build the life you want most. Whether you read her blog or listen to the podcast, you’ll get great advice on how to set a course toward financial freedom with real estate investing.

2. JoeFairless.com

Blogger: Joe Fairless

Focus: Multifamily investing, apartment syndication

Joe Fairless is a bit of a Renaissance man — he’s taught preschool, done standup, and worked as an ad exec. He also controls more than $900 million in real estate. So if you’re an investor looking to up your game, you’ll want to read Joe’s blog and his long-running daily podcast, “Best Ever Show.” 

3. Mr. Money Mustache

Blogger: Peter Adeney

Focus: Real estate investing for beginners, rentals, and REITs

“Financial freedom through badassity” is the tagline of Peter Adeney’s blog, so right away you know you’re in for a no-holds barred perspective on real estate investing. Adeney was able to retire in his 30s by cutting expenses in half and investing the savings in Vanguard index funds and rental homes. His blog is great for beginners, as many of the posts offer great advice on how to stash away more money by slashing food bill costs and other lifestyle expenses.

4. InvestFourMore.com

Blogger: Mark Ferguson

Focus: Real estate investing, wholesaling, BRRRR strategy

Mark Ferguson built $3.7 million in equity through real estate investing. He’s got info for everyone, from advanced investors to those who are just getting their feet wet. Ferguson blogs and has a regular e-newsletter that discusses flipping houses, financing, finding deals, wholesaling, and BRRR strategy.

5. Bigger Pockets

Focus: All aspects of real estate investing and personal finance

BiggerPockets is the single largest real estate investing platform in the world.  

BP is an empire of knowledge that spans podcasts, a growing library of books, and a vast website with all the information and resources an investor could want. Half educational, half social network, it brings together both new and experienced investors in all phases of real estate.

6. REtipster

Seth Williams is the founder of REtipster, a real estate investing blog that talks a lot about investing in raw land and some pretty cool land-investing strategies. I’ve always enjoyed talking with Seth at conferences, and he is a knowledgeable and transparent investor.  Seth’s website is easy to navigate and very user-friendly. He talks about more than just investing in land on his platform, so don’t write off this awesome resource just because you don’t buy land (yet).

7. Short Term Sage

Julian Sage of Short Term Sage is the short-term rental (STR) guy. I have had the pleasure of knowing Julian for a couple of years now, and he is in a mastermind group we host for service members. Julian is on active duty in the Coast Guard and has become an expert in the short-term rental space, hosting not one, but two, of the top short-term rental podcasts on iTunes.

Not only does Julian talk about traditional short-term rental strategies, but he also talks about rental arbitrage, STR property management, and even multifamily STR opportunities with apartment buildings.

8. Inman

Inman is a leading source of real estate information used by investors, realtors, brokers, and other professionals. It’s often one of the first sites to post major stories that affect the housing market. Frequent visitors will find news about:

  • The most recent mortgage rates
  • Statistics such as mortgage delinquency rates
  • New tools and tech platforms for real estate searches and transactions
  • Real estate firm mergers
  • Real estate crime and legislation

While the site focuses on the latest news, that isn’t the only kind of content you’ll find here. A decent amount of the content covers tips, secrets, and industry advice.  Inman is for real estate investors who rely on up-to-date information about the industry. That may include large-scale investors who are looking to break into local markets. Most of the advice is meant for people who are actively investing in property rather than new investors.

9. Realty Times

Realty Times is a real estate news and advice site that serves both investors and homebuyers with stories about: 

  • The definitions of critical real estate terms
  • Legal challenges and new legislation
  • Changes in consumer behavior and trends
  • Shifts in the housing market
  • Home selling advice

It regularly publishes market outlook reports for specific housing markets. These reports are detailed with information about average home prices, the best time to sell, and other data. Anyone who can make use of the reports can benefit from this blog. It’s a good resource for both buyers and sellers. If you’re going to focus on selling, what you learn here may help you understand buyers’ mindsets better. 

10. Commercial Property Executive

Activity in the commercial real estate market matters, even if your focus is residential real estate. That’s because the local job market and economy have a dramatic effect on the performance of residential rental properties.

Start learning from the best

Your education as a real estate investor never stops — especially if you want to keep growing your holdings. Blogs and podcasts are a great way to hear what’s working/not working for other investors. Find a few you like and commit to reading them to get new ideas and fresh perspectives for your real estate investing business. Reading blogs is one way that you can significantly increase your expertise with only a little effort. Use your downtime to do some reading, and you may be able to catch up on years of experience.  All of us at REI Capital Resources recommend checking out each of these blogs to find out which one can offer you the most. 

Photo by Pixabay on Pexels.com

If you’re planning to buy a distressed property, now may be a good time to buy. Just make sure you’re aware of the risks and understand what you’re getting into.  Distressed homes offer a unique buying opportunity for real investors, but the average home buyer should probably look elsewhere. 

If you need funding, apply now. I am working online with the rest of you.  

Patrick St. Cin

W – 512-213-2271

Patrick@REICapitalResources.com

http://www.reicapital.cash/

Multi-Family News on multihousingnews.com

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

Home Affordability Update

According to Realtor.com’s May 2019 monthly housing trend report, the national median listing price for a home sets a new record at $315,000.  Despite the continued rise in home prices, rising wages, more inventory, and declining mortgage rates, have made 74 of 100 metro areas more affordable to buyers in their market.

“…the boost in affordability has yet to translate into more home sales perhaps because. while the shift in trend is welcome, the current monthly savings are small and some buyers are waiting for markets to tip further in their favor.”

Danielle Hale, chief economist at realtor.com

The top ten cities showing the biggest improvements in availability of affordable homes also added decreasing listing price. The ten include:

Charlotte, North Carolina, median home price $329,450

Dallas-Fort Worth, Texas, median home price $350,000

Austin, Texas, median home price $369,995

Cape Coral-Fort Meyers, Florida, median home price $299,900

Portland, Oregon, median home price $474,975

Atlanta, Georgia, median home price $335,00

Lakeland-Winter Haven, Florida, median home price $231,500

San Francisco-Oakland, California, median home price $954,500

Des Moines, California, median home price $288,000

San Jose-Sunnyvale, California, median home price $1,167,444 000.

This data is not telling us that that there are more homes in the lower prices for first-time home buyers. According to the realtor.com report, the number of houses below $200,000 decreased 8% year-over-year, and the number of houses priced above $750,000 increased 11%.

The data is telling us that the price of homes in a specific metro area market, when compared to the price in the same market, became more affordable over the past year to the residents in that market. The market itself may still be a very pricey market, but the buyers in the market with increased income and lower interest rates are more able to afford the median home.

San Antonio-New Braunfels, Texas was also one of the 74 metro areas that became more affordable over the last year with a median home price of $295,000. Houston-The Woodlands et al, Texas metro area registered no change year-over-year with a median home price of $324,945.

So affordable homes in the lower prices are still needed to round out the market and where there is a demand, investment will follow.

REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer short and long-term financing options and are eager to support your project with funding.

Please give me a call when you find that perfect real estate investment and know how much money you need. We are “focused on funding your success.”

Patrick St.Cin
512-213-2271
Patrick@REICapital.cash  ffff

West, East, Central: Where to Invest

According to the 2019 Americas Investor Intentions Survey, CBRE,

The Top Ranked (Tier I) Metros for Investment in the Americas include

  • West
    • Seattle, San Francisco/Northern California, Los Angles/Southern California
  • East
    • Miami/South Florida, Washington D.C., New York, Boston
  • Central
    • Chicago

The Tier II Metros for Commercial Investment include

  • West
    • Portland, San Diego, Denver, Phoenix
  • East
    • Atlanta
  • Central
    • Minneapolis/St. Paul, Dallas/Ft. Worth, Austin, Houston

Tier III Metros for Commercial Investment include

  • West
    • Las Vegas
  • East
    • Orlando, Tampa/St. Petersburg
  • Central
    • Nashville

In Canada: Toronto

In Latin America: Mexico City

Texas

Three Texas cities, Dallas/Ft. Worth, Austin, and Houston appear in the Tier II category, the middle market. As with property classes, being in the middle has its benefits. Market sections move around. In good times and with infrastructure investment, the lower tier markets move up and in times of recessions or obsolescence, businesses in the upper tiers may relocate to cheaper markets to save money.

There is much to consider when investing in commercial real estate. Really the only thing you can tell from this data is that the investors surveyed, whatever their market, were intending to invest in these cities in 2019.

REI Capital Resources is a direct lender as well as a broker of funding solutions. We offer short and long-term financing options for your real estate investment needs.

We are “focused on funding your success!”

Patrick St.Cin
512-213-2271
Patrick@REICapital.cash 

Life Science Space Rentals

Austin

Texas has not been on the list of the top life Science research hubs, but it could be according to an article by Chris Davis of KXAN, a post on the Austincc.edu website.

Central Texas has a need and it is something commercail real estate investors can help with. Central Texas needs for wet lab space for a growing life science industry. One example of the possibilities is the Austin Community College’s (ACC’s), Austin BioScience Incubator (ABI), a State-of-the-Art facility that leases space and equipment to start-up life science companies. The ABI is booming with 16 companies leasing space. Three companies have moved on, outgrown the facility.

Science/Business Incubator

This science business incubator was born out of an approximate 9,500 sf renovation of the iconic Highland Mall in Central Austin, TX. According to its website, the facility features 4,000 sf of wet labs, two ISO I clean rooms, open workspace, conference space, and support offices. Member companies have access to core laboratories and instrumentation.

Mission

The ACC Bioscience Incubator aims to expand on previous successes by establishing a permanent wet lab facility and business incubator to accelerate Central Texas’ biotechnology economy while training a skilled workforce

Austin Community College

The Austin Area Life Science economy was spurred to new growth by the University of Texas at Austin’s Dell Medical School. Austin is now home to more than 240 bioscience companies, according to the Austin Chamber of Commerce, employing 15, 000 workers.

Growing Industry

The life science business is not likely to go anywhere but up in the future. Life science industries involve everything about life including health care for an aging population and DNA research, as well as pharmaceutical research, tissue fabrication, sanitation and food safety, genetics for preventing disease, and nanotechnology for medical devices, computer modeling, and imaging technologies.  This industry has been adding jobs since 2000, 5 times faster than the US economy, according to a report by Cushman and Wakefield published in January 2019.

Adaptable Space

This is an interesting type of real estate to look at for an investment. The key factors in investing in commercial real estate to renovate and rent to life science businesses is that the space needs to have both office space and wet lab space. It needs to be efficient and adaptable space for housing imaging technologies, clean rooms, collaboration, and storage, preferably near universities and cultural amenities to attract and retain scientific talent.

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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.

Patrick St.Cin
W – 512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash

References

Life Sciences: Limited Supply, Increasing Demand Driving Increased Real Estate Costs, 1/31;2019, ww.cushmanwakefield.com/en/news/2019/01/life-sciences-report

Life Science Space Continues to Be in High Demand with Low Vacancies and Rising Rents, National Real Estate Investor, Patricia Kirk, April 22, 2019.

Where scientific breakthroughs happen: Three trends shaping labs of the future JLL , Mike Romer, Chicago, February 15, 2018

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