Cap rate, short for capitalization rate, is a crucial metric in the world of real estate investment. It serves as a benchmark for comparing property values and offers a quick estimate of your expected return on investment (ROI). In essence, cap rates can be distilled into a simple formula:
Cap Rate = Net Operating Income (NOI) / Current Market Value
Acquiring and rehabbing properties can be the key to successful real estate investments. It not only increases resale value and profit but also allows investors to enter new markets and diversify their portfolios.
Generative AI – known by various brand names including ChatGPT, Bard, DALL-E and DeepMind – could help transform the commercial real estate sector.
Financing your growth and expansion is crucial, and the Small Business Administration (SBA) loan program offers a wide range of credit options with extended repayment terms and small down payments. Before you dive into the application process, it’s essential to understand how SBA loans work and explore your program options. In this guide, we’ll walk you through the key steps and benefits of SBA financing.
1031 is a great way to preserve equity, reposition assets and defer substantial amounts in taxes. 1031 Exchanges can be a great estate planning tool for real estate investors.
Wishing everyone a bright and healthy New Year from INSIGNIA Financial Services LLC! https://insigniafs.com/wp-content/uploads/2022/12/IFS-2023-Happy-New-Year-Facebook-Post-1-1.mp4
Freddie Mac will begin accepting ownership of two- to four-unit properties (duplexes, triplexes or quadplexes) as relevant experience for all loans in its Optigo® Small Balance Loans (SBL) program.
Investing in real estate is a very lucrative business, but you can only succeed with access to capital.
Private and hard money loans are great options for real estate investors because they give you access to capital with fewer requirements and greater certainty.
Low supply and strong demand will limit the extent home prices depreciate. If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly, which will spur an improvement in sales activity and reignite home price appreciation heading into 2024.
Join Root Realty and INSIGNIA Financial Services LLC for the Southside Landlord Enrichment Event
In this quick post, we’ve answered some of the most frequently asked questions concerning Homeowner Association (HOA) loans to fund capital projects, repairs and maintenance while avoiding special assessments.
Long term rental loans, or DSCR (debt service coverage ratio) loans, have become popular in recent years for investors looking to buy and hold properties. Borrowers love them because these loan types allow them to qualify for a financing using their property’s cash flow rather than their income, and lenders love them because they can be highly accretive to their loan portfolios held for investment.
Now is an ideal time to review your commercial real estate financing that may be maturing within the next two to four years and determine whether it would be beneficial to refinance in advance of the scheduled Maturity Date. Consider key factors, such as the ability to lock in a new rate and access equity or reduce risk with an extended term, while also weighing pre-payment terms to determine how much may be saved over the term of a new loan.
INSIGNIA Financial Services provides access to comprehensive debt placement and equity syndication for all your commercial real estate financing needs, including conventional agency financing, permanent financing, bridge loans, rate and term refinances, cash-out refinances, investment equity lines and loans, as well as acquisition and rehab loans
INSIGNIA Investor DSCR+ Loan
DSCR as Low as .75x
620 Minimum FICO
Cash Out Up to $750K
85% LTV with a 720+ FICO
Loan Amounts Up to $2.5MM
Interest Only Up to 80% LTV
No Personal Income Qualifying
First Time Investors Welcome
LLC, LP, Corp, or Individual
Warrantable & Non-Warrantable Condo
Good cause eviction legislation has been gaining momentum in recent months, especially in New York state. Since last summer, four upstate cities have passed good cause eviction laws, including Albany, Poughkeepsie and Newburgh. Meanwhile, smaller towns like New Paltz, Kingston, and Hudson are also considering passing similar bills.
The year that just ended was dominated by a new variant of COVID-19, and the surge in the Omicron strain meant a
Could agency lending be the right fit for your multifamily investment? While there are many options to consider when financing your multifamily property, INSIGNIA is here to help you navigate the process. For more information, talk to one of our multifamily experts or get an instant quote through our instant quote tool.
As we follow the aftermath of this weekend’s tornadoes, we’re thinking of all those in the central and southern U.S.
Time is running out for businesses to get COVID funding from the Small Business Administration. Are you leaving money on the
Yet, most investors don’t know how to take advantage of these tax benefits. A real estate investor focused, virtual CFO will
The vast majority of apartment properties are performing well despite the crisis caused by the coronavirus; however, that may change if lawmakers do not renew or replace the programs supporting millions who lost jobs or income, according to mid-2020 forecasts from economists at three apartment market research firms.
INSIGNIA loves working with investors in single family rental (SFR) properties (single family, townhouse, condo, 2-4 unit) due to their defensive nature and durable moat. Given the late stage of the market cycle, we are seeing a focus on affordable housing since investors largely believe this sector will outperform higher class housing in a recession. Multifamily investing is an excellent strategy, but requires a little more sophistication and capital when done properly.
Competition among investors for single-tenant net-lease properties intensified last year, sending cap rates down to historic lows, and the widespread eagerness to buy in this market may not slow down in 2020, according to a Q4 net-lease report by Wilmette, Illinois-based The Boulder Group.
Industrial properties have been highly sought-after by investors for the past several years. Will that trend continue in 2020?
With strong rental growth and lower interest rates, the time looks favorable for acquiring more single-family rentals.
Correlation to higher percentage of long-term renters for real estate investors in single family and multifamily rentals.
Fewer than 10% of Americans moved to new places in the 2018-2019 year, the lowest rate since the Census Bureau began tracking domestic relocations in 1947.
Why it matters: Despite a strong economy, more people are feeling locked in place. Young adults, who have historically been the most mobile, are staying put these days thanks to housing and job limitations. So are aging adults who are reluctant to (or can’t afford to) make a move.
2020 will be an especially challenging time for investors because the economy is slowing, trade wars could drastically affect specific localities, and some of the hottest real estate markets are already cooling down.
Both buyers and sellers stand to gain from seller financing. If you are a buyer, seller financing can give you the capital you need to actually make the purchase happen and make other lenders more likely to provide you with financing. If you are a seller, offering seller financing will bring you more prospects and perhaps let you charge a slightly higher price for the business.
The higher-earning renter household ($100K annual earnings) is the “fastest growing segment of the U.S. housing market.”
Having an asset that produces strong cash flow enables you to hold that asset through market conditions during which many others are forced to sell at discounted price levels.
The multifamily sector continues to draw a steady demand for financing.
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