Lending News and Information
The real estate market is always changing, especially when it comes to capital and securing the best deal for your investments. Professional rehab customers need to be nimble as the real estate market ebbs and flows. LSM's Lending News page is a great resource for keeping up with the latest information.
Appraisals and the Impact on Hard Money
An appraisal can affect the loan-to-value (LTV) ratio on a hard money loan. The LTV is the percentage of the property's value that the lender will finance. For example, if a borrower wants to borrow $100,000 against a property that has a value of $200,000, the LTV would be 50%. If the appraisal comes in at $180,000, the LTV would be 61% ($100,000/$180,000). The LTV ratio to help determine the risk of the loan, and a higher LTV means a higher risk. As such, a higher LTV will usually result in a higher interest rate.
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Rental Demand Expands in the Suburbs
Rental demand continues to soar. An increasingly larger wave of Millennials and Gen Z are now entering this extremely competitive housing market. They are almost always priced out of owning a new home, and construction is still not able to keep up with demand. So, they turn to the most affordable option to them, renting. As much as 55% of suburban renters are younger than 45, with a median household income of $50,000.
Housing Bubble or Housing Boom?
The current housing market can sometimes feel too good to be true. At least for those selling homes. For anyone looking to buy one, it's another story completely. It makes you wonder: is this sustainable; will the system eventually collapse? You wouldn’t be alone in anticipating the first housing bubble burst since the 2008 recession. Yet economic experts believe that there are multiple signs that point this market being a boom instead of a bubble.
Climate Change Alter Real Estate Market
Climate change is causing extreme weather, and extreme weather is convincing people to move. Houses on the coastline or in areas below sea level are usually built to sustain flooding. Houses in suburban New Jersey are not built that way. People living in the Northwest are used to moderate temperatures and rainy weather, not the extreme heat usually seen in the Southwest. Residents of suburban California moved away from the big cites to avoid the exact air pollution that has been permeating from the wildfires. Climate change is causing shifts in the housing market that will continue for years to come.
Rental properties: Five ways to maximize
As a real estate investor, it's important to do everything you can to maximize the value of your rental properties. By taking good care of the property and making necessary repairs, you'll be able to keep it in good condition and attract quality tenants.
Geothermal Heating and Cooling
Geothermal heating and cooling, also known as a ground-source heat pump, is similar to a standard air source heat pump. It does not create heat by burning a fossil fuel or using a strip heating. Instead, they collect heat from a source of either air or the ground by the use of compression and move it into the room (in the form of heat), or out of the room (in the form of air conditioning). This process is very similar to how a refrigerator makes for cold air inside, while warm air can be felt coming out of the bottom of the refrigerator near the floor.
Review of Geothermal Heating/Cooling
Historically, geothermal (or ground source) heat pumps were difficult to install with a limited of HVAC companies capable of installing. In the past 5 years, geothermal has been increasing in popularity due to its high efficiency compared to gas, oil and electric heat and small carbon footprint (no burning of fossil fuels). In honor of Earth Day, I'm sharing my real world experience of this alternative energy source and my journey to reduce my carbon footprint and not worry about increasing fuel prices.
Benefits of Rental Property Loans
As you're thinking about investing in rental property, you may be wondering what kind of loan is right for you. Short-term vacation rental property loans can give you the flexibility to finance a property for both personal and investment use. Long-term rental property loans are typically used to finance properties that will be rented out to tenants on a long-term basis. Both short-term and long-term rental property loans have their own benefits and drawbacks.
Can you see better ROI using Hard Money?
When it comes to real estate investing, one of the biggest barriers to entry is funding. Hard money loans are a popular option for investors, as they offer a number of advantages to overcome those barriers. Hard money loans can be used to purchase multiple investment properties for those that have the means to purchase and repair a property with cash.