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Blog-worthy topics about private lending and the commercial real estate market.
What are the advantages of non-recourse loans? Will the market continue to heat up? How does short-term private lending affect your CRE business? Get information, insights, and advice about the hottest topics in commercial real estate, bridge loans, and creative private lending solutions from the experts at iBorrow.
When is the best time to seek a multifamily bridge loan rather than a traditional multifamily loan? In a word: Now. In more words: Multifamily bridge loans can be the ideal solution for today’s volatile market. Why? Multifamily bridge loans provide borrowers immediate financing to bridge the gap between current and future needs. Of course, multifamily bridge loans aren’t the...
As rate hikes and inflation increase borrowing costs and wreak havoc on lenders’ ability to offer and close loans, the dynamics of market sentiment and pricing of the forward curves indicate that interest rates will decline in two to three years. Increasingly, there is a greater imperative for real estate investors to act quickly to secure ever-elusive financing while maintaining...
To take a page from The Wizard of Oz, we’re not in Kansas any more. With inflation at a 40-year high and the biggest set of Fed interest rate hikes since 1994, commercial real estate buyers are faced with a daunting set of challenges to navigate the existing landscape. And they’re not alone. This perfect storm of inflation pressures and...
This summer, the mercury isn’t the only thing that’s rising. As inflation surges to a 40-year high, the Fed hiked interest rates by three-quarters of a percentage point, the biggest single rate hike since 1994. Before would-be property buyers can catch their breaths and adjust to higher borrowing costs, borrowers should be forewarned that similar rate hikes are expected to...
Figuring out how to finance a commercial real estate deal can be like weaving through Charlotte’s Web. There are so many pathways with so many intricacies to consider. Ultimately, the loan products available to you will depend on the property type. In this article, we take a deep dive into industrial real estate lending. We look at the various forms...
Cash flow is generally the key in determining the value of commercial real estate properties. However, some commercial real estate properties that do not generate cash flow, due to the loss of tenants, property repositioning or speculative construction, have significant value. Traditional lenders have rigid lending requirements and are risk averse. For these lenders, cash-flow is critical to their decision...
A short-term bridge loan is a type of mortgage that provides borrowers with short-term capital that can be used to purchase and/or improve a commercial property until the property is repositioned and then refinanced or sold. The borrower will use the proceeds from the refinance or sale to pay off the short-term bridge loan at that time. Short-term bridge loans...
Nearly all commercial real estate deals are at least partially financed with a bank loan. Bank loans can come in different forms, including those with and without recourse. In an ideal world, and all else considered equal, a borrower will typically want to obtain a non-recourse loan as a means of limiting their personal liability. In this article, we look...