Letter from our CEO – July 2022:

All of us at REI Capital Resources are committed to staying current with the best offerings and creative solutions to fund your Real Estate investments.  Whether you have a need for a rental loan, a short-term bridge loan to take out a hard money loan on your recently completed flip or construction funding, we are ready to meet your needs.

However, we know that the market is very volatile and is causing ongoing interest rate instability.  This does affect our lending rates and we encourage you to have all your documents ready when applying for a loan.  That will allow us to lock in your best rate and ensure your success.

We’re here for our investor partners and are dedicated to helping you grow during the current market and beyond. Our goal is to provide complete transparency, so we wanted to provide more information about what to expect in the upcoming months:

We Will Continue to Be Your Trusted Partner

We remained consistent during the COVID-19 pandemic by continuing to grow our loan programs and providing financing to ensure your real estate investment projects succeed. This will continue during the current market instability and we’re committed to providing reliable capital, competitive loan terms, and a fast customer experience through our stable of lenders. Our loan programs will continue to be an important staple of REI Capital Resources as we’re here to support you, our clients.

Rates and Terms May Fluctuate

With the current housing and financial market headwinds, we’re expecting rates to possibly fluctuate.  Yes, our lenders have tightened some of their requirements but we will continue to find the best terms, rates and processes for your loans.  As we continue to manage our loan programs, we’ll keep you informed of these evolving changes.

Our Capital is More Reliable Than Ever

REI Capital Resources is stronger than ever and will continue to fund your rental, bridge, construction and commercial loans. We are closing loans on a regular basis through our multiple lending sources.  

Contact us today or schedule an appointment on my calendar by clicking here.

Sincerely,

Patrick St. Cin

W – 512-213-2271

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.  

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http://www.reicapital.cash/

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June 2022 – State of the Commercial Lender Market

Where We Are and Where Are We Going!

Welcome to our re-cap of our presentation and learn our insights about borrowing money, what you need to know as a private lender, or things to be aware of before borrowing from a commercial lender in 2022.

We need to have an understanding of both the prime and treasury historic rates to gain a perspective for 2022.

When looking at the past 22 years, we are actually not at the highest interest rate. Treasury rates are used to indicate various aspects of our economy.  Over the past 22 years the 10yr and 20yr Treasury Bond rates have fluctuated with small gains or reductions over short periods of time.  The last time the Treasury rates increased anywhere near as much as they have in the past few months was between mid-2011 to early 2013.  Today’s increase is similar but has been brought on by the Federal Reserve Bank reigning the economy in, attempting to keep inflation in check.

Low Unemployment has complicated this movement by the Fed.  Unemployment and high inflation were last in the early 50’s almost 70 years ago.  The concern is while the job market is extremely tight that higher wages will be a result of this tightened market thereby fueling inflation at the consumer level even more.  Remember, the Fed is trying to tighten the money supply by raising interest rates.  By doing so, historically, the economy shrinks and unemployment rises.

Former U.S. Treasury Secretary Lawrence Summers has noted that every time inflation has exceeded 4% while unemployment was below 5% over the past 75 years—which has happened in 70 months—the U.S. has fallen into a recession within two years.

The most recent of these events is from May to June of 2006, which was followed by the financial crisis starting in December of 2007.

Fed Chair Jerome Powell said in an interview with Marketplace that he couldn’t promise a so-called soft landing for the economy where inflation gets back to the 2% range and the labor market remains strong. “It’s quite challenging to accomplish that right now,” he said. (source, Barron’s, 5/25/2022)

Bond Yield Curves – Direction of Economy can be forecast through the observation of the US Treasury Yield Curves.  In this graph, the curves from the bottom, represent the yield curves by the months for 2022.  The economy has gone from being reasonably robust for the first quarter of the year to pointing toward a future recession.  The indicator of the recession is how the curve flattens in April (Gold line) to this past Friday (dark blue line).  Economists state that when the yield of the shorter term instruments, in this case the 2-year rate, is nearing the same rate as the 10yr rate, then the economy is headed towards a recession.

Sample Institutional Lender Rates – This is one of many lenders working in the 30yr Fixed Mortgage market.  They are somewhat tied to the 10yr Treasury Bill.  As can be seen the long term rates are rising much as the consumer mortgage rates are.  What is of interest is how they perceived and mitigated their risk in this market over the past 2 years.

During the pandemic the average spread between the 10yr Bill and their mortgage was hovering around 2.9%.

As the effects of the pandemic were dropping, along with all of the government rent and mortgage freeze programs, they lowered their spread to approximately 1.9%, a full 100 basis points from the 2020 spread.

As inflation worries started showing up in their data analysis in early 2022 risk abatement was once again put in place with a hefty increase of 140 basis points to the current 3.4% spread, we see today.

In the Multifamily lending space, we are seeing an increase in the spread between the T-Bill rate and the final interest rate to the borrower.  The delta between the 5yr spread and the 10yr spread has remained pretty much the same throughout the year.  What has happened to mitigate the risk involved is the actual spread for each of these loans between the T-Bill and final rate has increased by 15+/- basis points.  This increase along with the increase in the T-Bill rates has pushed the final interest rates for a 10yr Tier 2 loan to about 5.68%.

The Secured Overnight Financing RATE, SOFR, has held steady at 0.05% up till March 16 of this year.  This coincides with the first FED rate increase.  The SOFR is an index of what banks charge during the overnight transfer of money among various institutions.  It has increase 6,800% over a year ago.

Some lenders have switched their use from the LIBOR rate to the SOFR rate.  The spreads used are similar to either index but as with any loan the spread is what makes or breaks the deal.  One lender that was interviewed has stated their bridge loan products have a spread between 350 to 450 basis points.  At the high end for this lender their bridge products now range between 4.20% to 5.20% based on the SOFR of June 15, 2022.  These are for loans originating at the level of $15M and above.

Commercial lenders are pushing the limits of controlling their risk thru a number of methods.

            Qualifying FICO Scores have increased from an average of 640 to 660.  In order to obtain the best rates the FICO scores have increased from 740 to 780.

            Lenders are discounting professional appraisals.  Most recently I have experienced from 2 different lenders discounts of 20%-25% of the appraiser opinion of value.  Requesting data to support their claims apparently is futile.

            If the project has a Value Add component upwards of $100,000 or more then the borrower should be prepared to either prepare and or have a Feasibility Study performed by a third party construction management organization in order to satisfy the lender’s risk concerns.

            Guarantors – This has had minor changes but the members of an entity that have a 20% or greater ownership share should be ready to have their finances reviewed, even if they are on the sidelines with the strongest person as the guarantor.

            Tax Returns for the guarantor(s).  Depending on the structure of the ownership, other members/owners may need to share their tax returns as well.

Property requirements are tightening to some degree.  Regardless of the type of loan, Purchase or Refinance, the following items should always be made available to the lender:

  • P&L Statement from Previous Owner (if a purchase)
    • Balance Sheet from Previous Owner (if a purchase)
    • Rent Roll showing rents for the past 12 months
    • Lease Agreement(s)
    • Business Tax Returns
    • Environmental Report may be Required More Often than Not
    • Property Tax Statements
    • Insurance Coverage
    • Exit Strategy Statement
  • Based on the Yield Curves we have a reasonably good probability of a recession in the next 12-24 months.
  • This conclusion is bolstered by the combination of inflation being higher than un-employment.  Historically, when these two indicators are inverted there has been a recession with in 2years.
  • The question is:  How long will a recession last.  A recent Reuters article quotes James Gorman, CEO of Morgan Stanley, stating, “There is a 50% chance the U.S. economy will enter a recession though any downturn is unlikely to be severe.”
  • During these tough financial times and in to the foreseeable future, putting together and pushing a commercial loan thru to close will involve having lower LTV to meet the requirements of the DSCR for any given loan.  As the interest rates increase the only factor that can be adjusted to meet the DSCR requirements will be an increase in the borrower’s equity position, hence lower LTV.
  • Putting together and pushing a commercial loan thru to close will take more time, effort, documentation and patience.

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.  

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http://www.reicapital.cash/

Patrick St. Cin

W – 512-213-2271

Beware of Identity Theft When Getting Quotes as a Real Estate Investor! Verify your Lender!!!

About 3 years ago, there were a number of posts on Facebook that stated the lender had money at 4% available to anyone.  As a loan broker, I’m always looking for inexpensive money for my clients.  When I made contact with one of the supposed lenders their requirements were rather interesting.  The key to telling me they were scam artists were two things: The need for a utility bill from the borrower and a copy of the borrower’s driver’s license. 

Photo by Tima Miroshnichenko on Pexels.com

Fast forward to today…  these same scam artists are at it again.  They are a bit more sophisticated now but they are easy to spot.  These lenders pose as private money lenders on LinkedIn.  They ask for a general summary of the project and even an executive summary of the project the borrower wishes to fund.  They even have websites that make you think you’re dealing with a real lender.  One that I began to research even had testimonials.  Fantastic, I was getting somewhere, the lender had people saying they were legit! 

Fake websites often look like legitimate and trustworthy sites to make people more apt to provide their personal information. Scammers may seed the website with malware that infects the victim’s device and harvests personal or financial information.

It fell apart when I started calling some of the people that I knew, a small world of loan brokers, that were listed in the testimonials.  The specific testimonial listed a former member of my contact’s company as having written the testimonial.  They listed another person in the testimonial but my contact had no idea who the lender was. I researched further to find the person mentioned in the testimonial.  Fortunately, he was still in the industry and was able to be located.  He and I had a few pleasant email exchanges which led to the fact that the testimonial was lifted from a legitimate lender, another one I work with, and edited to change the name of the lender. 

For cyber thieves, your personal information is a goldmine. For example, your (user) name, last name, email addresses, phone numbers, passwords, banking information, credit card details, Social Security number, medical records – and so forth.  Your personally identifying information could include your full name, home address, email address, online login and passwords, Social Security number, driver’s license number, passport number, or bank number. 

Then came the email from the questionable lender.  Please have your client fill out our application. 

  • Name 
  • Address 
  • Sex 
  • Utility Bill 
  • Driver License 

It was the same group from 3 years ago remade into a somewhat real lender. 

Scammers often use phishing emails to trick victims into providing personal or financial information. Phishing emails can be deceiving in that they may appear to come from a known or trusted company, such as a bank or an online retailer, and use various tactics to get the victim to click a link or open an attachment.  They are trying to steal your identity!  Identity theft occurs when someone uses your personal identifying information and pretends to be you in order to commit fraud or to gain other financial benefits.

With enough identifying information about an individual, a criminal can take over that individual’s identity to conduct a wide range of crimes. For example:

  • False applications for loans and credit cards,
  • Fraudulent withdrawals from bank accounts,
  • Fraudulent use of telephone calling cards or online accounts, or
  • Obtaining other goods or privileges which the criminal might be denied if he were to use his real name
     

Please be wary of any lender that wants the type of information requested above and is offering interest rates that are substantially below market rates. 

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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Happy Thanksgiving! We’re Grateful for you!

As we think about the things we’re grateful for, YOU were on top of our list. Thank you for allowing us in the past year to fund your real estate projects. We hope to bring more value to your business in the years to come.  With the end of the year coming, it is still possible to close and fund your next deal before Christmas!

“Be present in all things and thankful for all things.” ~Maya Angelou   

Do you know how expressing gratitude can help others and yourself?  Boost your health, hope, and happiness with a powerful dose of gratitude.  Also, people do business with happier less grumpy people so it’s good for not only company morale but with your customers and partners too. What does appreciation really mean, and why is there so little of it to go around these days? Just listen to all your friends and peers who complain that winter warm days are not lasting or are always grumpy or gossiping. Approximately 90% of people responded with comments like “Yeah, but it won’t last!” and “Oh, you just wait for summer!”

All this made me think a lot about the ways we express ourselves and the way we do or do not give thanks in moments of satisfaction and happiness.

Definitions of Grateful and Thankful

Being grateful is defined by Merriam Webster as being “appreciative of benefits received.” Meanwhile being thankful is defined as being “conscious of benefits received.” Being grateful isn’t just about performing one action, it’s also an emotion that serves a positive purpose. Gratitude embodies a general state of thankfulness. Gratefulness can be the result of many small, positive actions that come together to shape a mindset of appreciation. Some examples may be:

  • After hearing about a sick friend or co-worker, you may reflect on your life and feel grateful for your health.
  • If you have to reschedule a meeting at the last minute due to a family emergency, you will feel grateful for the other meeting attendees if they’re understanding of your last-minute crisis.
  • If you have a tough day at work, you might stop and be grateful that you have a job, unlike the many who are unemployed.

Thankfulness, on the other hand, is a conscious act you engage in after you receive some sort of benefit. Thankfulness differs from gratitude in many ways, one of which is that it is commonly associated with materialism, which is not a characteristic of people who practice gratitude. Appreciation is gratitude in action.  Gratitude embodies a general state of thankfulness.

During Thanksgiving, I hope you take a moment to reflect on the hard work you put in daily. Take pride in your efforts and give thanks to those who contribute to your success. 

I am thankful to all of you for reading my blog and newsletters. Your support means a lot.

Gratefully yours,

Patrick St. Cin

W – 512-213-2271

Patrick@REICapitalResources.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.  

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http://www.reicapital.cash/

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ANNOUNCING: Bridge FICO Bands Lowered to 600+ Minimum Requirement

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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/

3 Ways Real Estate Investors Can Owner Occupy Their Rentals

by Patrick St.Cin

Property investments potentially have excellent returns and can diversify your portfolio to insulate you from recessions and other adverse economic conditions. There’s no single right answer on the best way to invest in real estate. Are you getting started in Real Estate Investing and wonder how to live in your investment property? 

Tip 1:  House Hacking

This can mean a few different things. House hacking is essentially a hybrid of buying a home to use as a primary residence and buying a rental property. In general, the term refers to buying a residential property with two to four units or with a Granny Flat/Additional Dwelling Unit in the backyard and living in one of the units while renting the others out. In theory, if you have the money you could purchase an entire duplex or four-plex and rent out any apartment to tenants. Keep your expenses low so you can keep rent affordable to entice prospective tenants.  You also could purchase property that you live in while renting out other rooms in the property. 

Either way, you’re the landlord. Be a good one, and you’ll be in a much better position to succeed in this investment. Keep the property in great condition, be readily available to your tenants when needed, and if necessary hire someone who can help with repairs.

Let’s say you find a quadruplex (four units) for $200,000. Including taxes and insurance, we’ll say your mortgage payment is $1,500 per month. After you buy the property, you rent out three of the units for $600 each and live in the fourth. Not only do you live for free (the rent covers your entire mortgage payment), but you’re generating a positive cash flow of $300 per month and are building equity in a more valuable property than if you had bought one unit to live in.

House hacking can be an excellent low-cost way to start building a portfolio of rental properties. Because you live in the property, even a multi-unit residential property can qualify for primary residence financing, which comes with lower interest rates and lower down payment requirements than investment property loans. You’re typically required to live in the property for a certain amount of time after you buy it, but once that period expires (usually a year or two), you’re free to repeat the process with another multi-unit property.

The obvious downside is privacy. There’s value in having your own yard, and it can create some awkward situations when you live in the same building as your tenants. Even so, if you’re a new real estate investor and don’t really need your own house, you may want to consider house hacking. This isn’t as much of an investment strategy as it is a side hustle, but it’s still worth mentioning here. With the emergence of platforms like Airbnb, it’s easier than ever to rent out your home when you aren’t around or to rent out a spare room in your home for a few days here and there.  

Tip 2: Tax-Free 2 Weeks Income 

One interesting aspect of this strategy is that if you rent out your home for fewer than 14 days in a year, you don’t pay tax on the money you collect. If you go out of town for the holidays or take a summer vacation, using your home as an occasional short-term rental can offset your travel expenses with tax-free income.

Landlord Tax benefits: 

  1. The mortgage interest deduction for the mortgage interest you pay to buy and/or fix up your properties. 
  2. Deductions: insurance premiums, repairs, utilities (that are not paid for by the tenants)
  3. Depreciation: You are allowed an annual deduction for the wear and tear your property experiences over time, spread out over 27.5 years for residential properties. Land cannot be depreciated.

Living with Tenants is Too Much – What is a Traditional Landlord? 

Owning rental properties is an excellent way to invest in real estate while building wealth and generating income. The return potential is strong thanks to a combination of income, equity appreciation, and the easy use of leverage when buying real estate.

However, owning rental properties isn’t right for everyone, so consider these drawbacks before you start looking:

  • Cost barriers: It can be very expensive to buy your first rental property. Most lenders want at least 25% down for an investment property loan and it’s smart to keep several months’ worth of expenses in reserves.
  • Uncertainty: When it comes to rental properties, vacancies happen and things break. While the overall return potential can be great, rental properties have considerable short-term risk.
  • Time commitment: Even if you hire a property management company, owning a rental can be a time-consuming form of real estate investing.

Tip 3: Vacation or Short-Term Rentals

A vacation rental tends to bring in more income per rented day than a comparable long-term rental property. However, there are some potential drawbacks to owning a vacation rental. Marketing and managing a vacation rental is more involved than a long-term rental. As such, property management is far more expensive — expect to pay a property manager about 25% of the rent on a vacation rental. That’s more than double the 10% industry standard for properties with long-term tenants.  Furthermore, you may need a special license in your preferred locations, which can be very expensive.

On the positive side, you may be able to use the home when it isn’t occupied. It can also be significantly easier to finance a vacation rental, especially if it meets your lender’s definition of a second home and you don’t use the rental income to qualify. There are loans options available for short-term rental funding.

Always buy property for the best possible price. You want to buy those properties that offer specific challenges that match your personal talents so you can use your skills to upgrade and enhance the value of the property and increase the Net Operating Income over time.  Obviously, the higher the rents and the lower your total monthly expenses, the greater your net income from the property will be. Costs that affect cash flow include principal & interest payments; property taxes; insurance; maintenance/repair costs.

Although we’re always quick to advise against borrowing too much and overleveraging your real estate investments, you also don’t want to be too conservative and underestimate your cash needs. The cost of refinancing is such that you may be able to refinance the property no more than once every several years, and if you suddenly need cash to overcome some unanticipated problems, the costs of short-term funds can be high. Borrow extra money or have an untapped line of credit available (which some lenders offer at no carrying cost to their best customers) to allow for reserves.

Joint ventures, wholesaling, fix-and-flip, and property management are just a few of the other ways investors can profit from real estate.   

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/

A Job: In June. In Texas

The Bureau of Labor Statistics released the Employment Situation report for June 2019 on July 19, 2019.

In June, unemployment rates were lower in 6 states and stable in 44 states and the District of Columbia. Nonfarm payroll employment increased in 4 states and was essentially unchanged in 46 states and the District.

Unemployment

Vermont had the lowest unemployment rate in June 2019, 2.1 percent. The rates in Alabama (3.5 percent), Arkansas (3.5 percent), New Jersey (3.5 percent), and Texas (3.4 percent) set new series lows. (All state series begin in 1976.) For Texas, the unemployment rate went down from 3.5% in May 2019 to 3.4% in June 2019.  Statistically, this was a significant decrease. Housing sales go the way of jobs. When there are more jobs and higher salaries, more families are looking for homes to buy near where they work.

Nonfarm Payroll Employment

Twenty-eight states had over-the-year increases in nonfarm payroll employment in June. The largest job gains occurred in Texas (+315,600), California (+296,100), and Florida (+218,800). The largest percentage gain occurred in Nevada (+3.3 percent), followed by Arizona (+2.8 percent) and Utah and Washington (+2.7 percent each).

Falls, Slips, and Trips

55% of the injuries reported by education, training, and library workers 55 and older were injured in falls, slips, and trips. 36% of the injuries reported by healthcare support personnel 55 and older were injured by falls, slips, and trips. 46.7% of the injuries reported by sales and related workers 55 and older were injured by falls, slips, and trips. 34.7% of the injuries reported by farming, fishing, and forestry workers 55 and older were injured by falls, slips, and trips.

Overexertion and Bodily Reaction

43.2% of injuries reported by installation, maintenance, and repair workers 55 and older were injured by overexertion and bodily reaction. 38.5% of injuries reported by production workers 55 and older were injured by overexertion and bodily reaction.

The Metropolitan Area Employment and Unemployment news release for June is scheduled to be released on Thursday, August 1, 2019, at 10:00 a.m. (EDT). The State Employment and Unemployment news release for July is scheduled to be released on Friday, August 16, 2019, at 10:00 a.m. (EDT). I’m looking forward to seeing how our Texas large metropolitan areas did this quarter.

REI Capital Resources is “focused on funding your success.” 

Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.

Patrick St.Cin

W – 512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash e 01050000

Adaptation and Survival in Commercial Real Estate

In 2019, the United States is the most preferred location for commercial real estate in terms of inbound capital according to the Deloitte 2019 Commercial Real Estate Outlook. This Outlook report hits hard on the ability of investors to be agile in their real estate businesses, but the agility must be based on awareness of trends that are occurring based on trend analytic and artificial intelligence applications that allow a business owner to see what is happening in and around his property so that decisions can be made quickly to adjust and/or mitigate and survive changes.

Some of the key terms popping up in the commercial real estate investor and real estate investor trust literature include diversification, multi-use properties, healthcare properties, data centers, distributions centers, flexible leases, and flexible spaces.

Healthcare Facilities Follow Domestic Trends

Investors seem to be increasing their investments in health care facilities that include senior housing and in data centers according to the 2019 CRE Outlook. Health care and senior living residents are looking like safer investments because they are not as dependent on global trade but more on domestic trends, demographic trends, and the health of the overall economy.

Data Centers Float Because Digital Goods Continue to Move

The 2019 CRE Outlook also shows that investors are putting more capital into data centers in 2019. Data centers seem to be more immune to global trade tensions at the moment because businesses are focused on expanding their digital infrastructure across borders, according to the wsj article by Esther Fung, “Real-Estate Stocks in High Demand as Trade Battle Brews.” Even though physical goods are stopped by tariffs, digital goods are still moving.

Distributions Centers Move Goods Within the Borders

Distribution centers that support the movement of goods within the United States are also looking like safer investments because they will not be as disrupted by global trade tensions that disrupt centers in port cities dependent on global trade.

Simulation Allows Buyers to Visualize Space Options

Investors are including “flexible spaces” and experiential and engaging spaces as part of a more diversified portfolio. When I read the Deloitte 2019 Commercial Real Estate Outlook, the term flexible space seems to refer to a marketing concept rather than the physical reality-morphing room seen on Star Wars. It involves using 3D and augmented reality simulation to allow buyers to visualize a new property in multiple 3D finished options both inside and outside and choose what they like best. I’ve seen an app like this on television recently that helps you visualize how to arrange furniture in an empty room.  The buyer participates in the space design.

Varied Experience Adds Value to a Space

Catering to mixed tenants is another way to diversify a property so that they are not all one type and come and go at one time. By making a property a mixed-tenant space, the landlord services tenants that  may be office workers or retail incubators mixed in with places to eat, workout, and shop all within walkable distances from one another other. The experience of renting the space is of higher value to the tenant because of the foot traffic and opportunities to network the space provides.

Flexible Leases for Mixed Tenants to Manage Uncertainty and Attract Startups

Working in tandem with the mixed tenant model is another business model that involves offering short-, long-term, and hybrid lease agreements of different lengths to varied tenants to fill vacancies in the short-term rather than having spaces continue to be vacant. The shorter lease lengths appeal to startup businesses and to established businesses struggling with market uncertainty. This strategy is a form of thriving on chaos in that agility is planned and business tenants can move around within a space or in and out of a space more easily as business fluctuates.

The message I received loud and clear from the wsj article and the 2019 Commercial Real Estate Outlook is that investors must become comfortable with change and agile in maneuvering to survive in the current marketplace.

REI Capital Resources built its reputation on finding private funding for investors for quick turn purchases and difficult situations.  This is still true today.  

Give me a call or send an e-mail and share with me your plans and needs, and I’ll see what lending solution I can generate for you.

Patrick St.Cin

W – 512-213-2271
Patrick@REICapital.cash
Info@REICapital.cash n1 \lsdunhid

Backyards for Wellness and Community

Although installing a deck, patio, fire pit, outdoor kitchen, lighting, and fountains on an investment property once might have been risky, the current popularity of “health and wellness” have made buyers more inclined to look for features in a landscape that add opportunities to increase their wellness and to build community. For a real estate investor, this trend may justify increasing the landscape budget so that it can include features that invite people into the backyard where the sun, fresh air, sights of trees and flowers, sounds of leaves or water.  Amenities that soothe and refresh after a hard day at work may attract buyers looking for wellness. Lights, water features, decks, and fire pits provide places where families and neighbors can gather and might be attractive to buyers seeking both wellness and community.

An article in webmd.com, “Do You Need a Nature Prescription?” by Carol Sorgen, points out that researchers have found evidence that time spent in a natural setting, “whether walking in a park or gardening in your backyard improves mood, self-esteem, and motivation.” In the suburban backyard, working with the land you have, a real estate investor can tap into ecotherapy elements to attract buyers in 2019. The article by Sorgen, states that taking in the forest atmosphere such as the odor of wood, the sound of running water, and the scenery of a forest can provide health benefits for children and adults, including relaxation, reduced stress, lower pulse rate, and lower blood pressure. Danielle Small, writing for homluv.com says that creating a woodsy retreat in your backyard and adding water and lighting to your backyard may provide a real treat for a homeowner at the end of a hectic day.

Buyers are well versed in health and wellness these days so adding a fountain, waterfall, or a small pond along with a comfortable seat in the backyard may very well appeal to them from a health perspective as well as from a lawn-eating, lower maintenance perspective. Fountains and waterfalls can be made to blend into nature or to stand out and make a statement. A few strands of star-like lights in the trees can add a sense of serenity, calm, and romance to the backyard too.

As a real estate investor, common sense, tried and true, backyard landscaping techniques combined with some of the newer wellness and outdoor-living trends may be a useful combination to know as you plan your project budget and marketing campaign.

The fix-n-flip loan program is one of my most popular real estate loan programs. Competition for houses is tight. The ability to get fast funds to buy and remodel a property is important. As a broker and a direct lender, it is my job to help you get a hard money loan easily and quickly. Private Lenders, not banks, are willing to help you fund your project based on the value of the property and its after renovation value. We have money to lend and you need money quickly. A perfect fit is out there.

Please give me a call or send an e-mail.

Patrick StCin, 512-213-2271

e-mail: patrick@REICapital.cash