Small Balance Commercial Loans Now Available from REI Capital Resources and Current Offerings

As a direct lender and financial intermediary, we have the opportunity to place the most competitive financing options in the market.  We look forward to winning your business and creating a long-term relationship.  In addition to our core offerings of 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, we now have the ability to place loans with multiple small-balance commercial lenders.  The small-balance commercial loan amount falls between $100,000 to $10.M.

Types of properties that can be funded: 

  • Multifamily 
  • Commercial Condo 
  • Multi-Use – Primarily Residential 
  • Multi-Use – Primarily Commercial 
  • Office 
  • Retail/Wholesale/Strip Center 
  • Warehouse 
  • Light Industrial 
  • Self Storage 
  • Mobile Home Park 
  • Automotive 
  • Day Care – Free Standing/non-residential 
  • Restaurant/Bar 

Loan Programs Available: 

  • No Doc (min FICO 700)  –  $100,000 to $2.5M 
  • Full Doc (Min FICO 600) –  $500,000 to $10.0M 
  • Lite doc (Min FICO 650)  –  $100,000 to $2.5M 
  • Bank Statement (Min FICO 650) – $100,000 to $2.5M 

Loan Terms: 

  • Amortization – 15, 25, 30 yr 
  • Term – 5, 7, 10yr 
  • Rates – from 5.5% 

Here are more details of our core lending products of 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.

  • 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

Do you need funding for your BRRRR investment?  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%)

Some of our lenders 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

Our lenders are ready to work with contractors and investors.  Now is a good time to buy a distressed property but be aware of the risks and understand what you’re getting into.  Distressed homes offer a unique buying opportunity for real estate 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.  

This image has an empty alt attribute; its file name is apply-now-button.gif

http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

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.   

This image has an empty alt attribute; its file name is apply-now-button.gif

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.  

This image has an empty alt attribute; its file name is apply-now-button.gif

http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

Photo by Andrea Piacquadio 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/

ANNOUNCING: Bridge FICO Bands Lowered to 600+ Minimum Requirement

Photo by Amina Filkins on Pexels.com

We’re constantly analyzing data to train our machine learning models and inform our credit policies. Recently, we’ve lowered our bridge FICO minimum requirement to 600+ for qualifying clients. With newly expanded FICO bands, you have the potential to approve different clients and scale your business. Please note that all terms and borrowers are subject to credit approval.
We’ve also increased our bridge rehab limit to $500k maximum for clients of all REI experience levels. Take advantage of our other bridge loan program highlights, such as:

  • Rates as low as 6.5%*
  • Minimum 600+ FICO – new
  • Max $500k rehab size with up to 100% of rehab costs covered – new
  • Loans from $50k to $3MM
  • 12, 18 & 24-month terms
  • Up to 90% of the purchase price
  • Up to 75% of after-repair value

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/

Diamonds are not forever but Real Estate Is … Make Wise Investing Choices!

Would you ever think to compare diamonds and real estate? At first glance, they seem like two completely different things.  However, they are both hard assets that are cost-prohibitive to acquire for the average US worker.  However, you can sell both “assets” quickly and not realize their full value in the marketplace.    Let’s first compare the similarities and then differences from an investment perspective.

Real Estate is a better long term investment than diamonds

Similarities

Hard Assets:

  • Both Diamonds and Real Estate are Hard Assets similar to other commodities
  • Negatively correlated with bonds and stocks, so when stocks crash both appreciate in value

Long Term Investments

  • Suitable for investors who are not looking for fast returns on their investment
  • Risk losing money if you try to “flip” your investment too early or didn’t acquire at the right price below market value

Additional Utility

  • Provide the investor with enjoyment and value
    • Diamonds are pretty to look at and make the person or people associated with the diamond have better social value 
    • Real Estate provides rental income and in the case of short-term rentals – owners can enjoy the property and generate revenue when not in use.

Differences

As investors, we all know that not all hard assets, such as real estate or diamonds, have the same return on investment.  In fact, ROI performance varies greatly even among real estate classes:  residential property, commercial real estate, agricultural property, etc.  Financial crises prove time and again that real estate is a highly volatile asset.   Diamonds are a closed market that is stable and less risky.  However, there are still differences among the rate of returns on diamonds such as the colored diamonds are less risky.

  • Maintenance Fees
    • Diamonds don’t have a maintenance fee … you’re ROI is based on the price you paid upfront for the diamond
    • Real Estate requires maintenance and repairs and possibly property management fees.  All these factors need to be carefully considered before acquiring property and affect your return on investment.
  • Portability
    • Several millions of dollars can fit in your fist and transport in a pocket … the irony for not being the rarest stone they have the highest size to value ratio of the natural resource category.   This is how historically (since the silk road trail) wealth was transported long distances and across borders.
    • Real estate can’t be moved. Real estate is not physically portable and the value does not transfer easily either.  However, 1031 exchanges are a great way to transfer appreciation as you sell your property.

At REI Capital Resources, we prefer real estate investing to diamonds.  In fact, diamond prices are extremely volatile – shooting up 249% from 1978 to 1980 before falling 77% by early 1986 – but the value of diamonds has also long been propped up by a number of artificial sources.   Real estate can be utilized and provide rental income.  As the number of cloud and work from home startups rise, commercial real estate is increasingly valuable to investors to provide “server farms” to meet bandwidth demands.

We are not saying diamonds aren’t valuable or important – especially as emergency currency and making your future or current spouse a little happier this valentine’s day.  We’re saying don’t buy a diamond as an investment with the idea of retained value.  If you look at diamond prices since the 1970s, there has been “Too Much Price Volatility & Demand Uncertainty To Be Considered Investable” by numerous sources.  Also, the use of diamonds as a symbol of a woman to be married is only about a 100-year-old custom.  There are numerous other stones considered rarer.  Thank you, Madison Avenue for making weddings a thing to save money for and cause the intelligent investor to consider generating a new stream of revenue.

We love this quote by Milton Friedman, “The speculator is looking for hidden weak spots in the market,” and acts as “the advance agent of the investor, seeking always to bring market prices into line with investment values.”   Diamonds don’t provide an adequate hedge against inflation, and most people would be better off with more practical financial planning, than investing for catastrophe purposes.  The diamond while a modern symbol of one’s love and commitment to another is expensive and ranks low when compared to value stability.

Diamonds vs. Gold vs. S&P 500

YearGold ROI  %Diamond ROI  %S&P500 ROI  %
2004000
200536-110
200657323
200797291
200811911-22
200917619-7
2010254507
20112763915
20122182437
20131852061
2014172873

*Data courtesy of the Rappaport Diamond Index, Kitco, the World Gold Council and Yahoo Finance. Diamond prices reflect monthly averages based on a 1-carat diamond. Gold prices are based on average annual London PM fixed prices. S&P 500 prices reflect average monthly adjusted closing prices. ROIs are cumulative.

The chart shows when the stock market suffered historic losses, diamonds at best served as a short-term hedge and very quickly fell behind the returns of alternative investments.

Therefore, I would recommend a 3 bedroom house that generates a positive return on investment that you can set aside the money after a year to buy your sweetie her diamond.  If she loves you, she’ll wait a year knowing a diamond is coming.

Bridge that Gap

Sometimes there is a gap that needs to be crossed or bridged temporarily between money going out for a new purchase and money coming in from a home sale. The bridge loan is the funding tool that applies in this multiple house situation.

toon-3111

REI Capital Resources is a loan originator for select investor single-family residential projects. Our goal is to provide fast closing loans to fund your investment projects so you don’t lose a good deal.

Enjoy your day!

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

 

Cartoon used with permission

REI Bridge Loan

Although a bridge loan can be used in any business to raise operating capital or buy out partners, for our purposes, it is most often funds lent to cover an interval between two transactions, typically the buying of one single-family dwelling and the selling of another. Buyers (individuals or businesses) take out a bridge loan so they can buy another home before they sell an old one. The loan is secured by the houses.

Fast Financing
The main benefit of a bridge loan is that it is a way to get financing fast. Like a gap loan, it is useful if you have a seller that is in a hurry for some reason or if a buyer places an offer on a new house with a contingent for selling his or her old house and another buyer comes along and makes an offer on the property, requiring the first buyer to come up with the funds to purchase the property and remove the contingency or lose the opportunity to purchase the home to the new buyer.

In a sellers’ market, some sellers will not accept a contingent offer because they have so many offers, they don’t need to. In a seller’s market or in a auction situation having a bridge loan in place before you offer will make your offer more attractive.

Higher Interest Rates Over a Short Term
The main drawbacks to a bridge loan are interest rates, fees, and the risk of having to maintain a loan on two homes if your old house does not sell quickly. The expense of a bridge loan can be acceptable when you know you can pay it off quickly with a lower interest loan. Even though a bridge loan may carry no payments for a few months, interest will accrue and be due when the loan is paid on the sale of the old property. Fees on a bridge loan typically include:

  • Loan administration fee
  • Appraisal fee
  • Escrow fee
  • Title policy fee
  • Wiring fees
  • Notary fee
  • Loan origination fee

A home equity loan is cheaper than a bridge loan, but if your old house, the one with the equity, is on the market, some lenders will not lend on it. The interest rate is lowest for borrowers with excellent credit ratings and lots of equity. The borrower must be able to qualify for owning both houses. Both mortgages are rolled into one for a short time at a high interest rate.

Research Potential Time on the Market
In a seller’s market, buyers are plentiful so the home you are trying to sell might sell quickly unless it is in a totally different market. The answer here is to do plenty of research so you can estimate how long it might take your old home to sell and negotiate that term with the lender with an option for extending the bridge loan. You also want to be aware of any prepayment penalties in the case your property sells quickly.

If the housing market cools and homes are for sale on the market a long time, the number of bridge loans needed may increase to cover this gap between buying new and selling old. If there is a chance your old house will not sell quickly, and depending on your circumstances, it might be safer to wait for the house to sell before you make an offer on a new house or you could be stuck making two home loans.

white metal bridge under the blue sky

Photo by Tino Schmidt on Pexels.com

REI Capital Resources is a loan originator for select investor single-family residential projects. Our goal is to provide fast closing loans to fund your investment projects, so you don’t lose a great deal. This includes bridge loans for the acquisition of property.

Give me a call or send an e-mail for assistance funding your project.

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

 

References

The balance.com What exactly are Bridge Loans by Elizabeth Weintraub, January 2019.
https://www.thebalance.com/what-are-bridge-loans-1798410

Investopedia, Bridge Loan Definition, by Julia Kagan, April 9, 2019. https://www.investopedia.com/terms/b/bridgeloan.asp

Bridge Loan. https://www.thetruthaboutmortgage.com/bridge-loan/