Join TRET for it's 16th episode, as Stephon discusses the effects of current interest rate activity on the real estate market.
Showing posts with label funding. Show all posts
Showing posts with label funding. Show all posts
Thursday, August 17, 2023
Tuesday, June 20, 2023
The Connection Between Banking and Real Estate in 2023
Throughout the years that I have written this blog, I
have regularly connected the activity of the financial market with the real
estate market. In doing so, I often take for granted the connection between the two
markets. Recent troubles in local banking, however, give me yet another
occasion to highlight how the banking industry impacts the
real estate market. It seems like every few years, I write an article like
this, but I will do my best to highlight the contextual factors that make this
year’s bank failures unique.
Tuesday, July 13, 2021
12 Baffling Mortgage Acronyms Explained (UK)

Hello TRET Readers/Followers:
Please check out the Tembo article below regarding mortgage acronyms in the UK:
Sunday, April 4, 2021
ARMs: A Quick Look
Adjustable-Rate Mortgages (ARMs) are a viable financing
option for both single, multifamily and owner-occupied commercial property owners. Ever since
their formal establishment by Title VII of the Garn–St Germain Depository
Institutions Act of 1982, ARMs have offered the opportunity to link mortgage
payments to marketplace activity. Coupled with the rate collars, ceilings and
floors, these financial instruments have the potential to lock in the
conditions of a favorable interest rate market, at interest
rates that are typically lower than a fixed-rate mortgage. In the world of retail real estate, lower
rates can translate into increased purchasing power. For the real estate
investor, however, rate fluctuations and potential for sustained above
market-rates usually tends to also lead to an early refinance. With the January 3, 2022
deadline for ARMs to decouple from the LIBOR index imposed by Fannie and
Freddie, now is an opportune time to take a look at ARMs and their role in
the mortgage market.
Friday, July 27, 2018
How To Approach A Defaulting Second Mortgage
Default
happens, hopefully not often, but it is a fact of lending. Upon default,
however, a holder of a second mortgage must find an objective, value-driven
manner in which to evaluate its options. Unfortunately, in many instances second position lienholders opt for one of two extreme
approaches—accepting a nominal amount in exchange for the release of the lien
or demanding an unreasonably high sum for satisfaction of the lien. Both
approaches are harmful for different reasons. Despite such prevalent behavior, with proper management, a defaulting second mortgage can provide a lienholder with a number of
options.
Wednesday, July 25, 2018
Real Estate Crowdfunding
Real estate crowdfunding has been a hot topic for the past few years and continues to gain notoriety. Praised for its flexibility and low barrier to entry, crowdfunding enables investors to directly invest in real estate properties
without having to amass the funds necessary for a mortgage down-payment. For
an amount as low as $500, in some instances, investors can contribute to a pool of investor capital that will enable a real estate entity to acquire a
property. Open to both accredited investors and the public at large, crowdfunding
offers access to the risks and rewards of direct real estate ownership in a
passive manner with relatively little out-of-pocket costs.