All posts by admin_parkwestcapital

Is a Multifamily Bridge Loan Right for You?

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Here’s a hypothetical scenario: you’ve found a lucrative multifamily property but you currently lack the funds to transition ownership within the timeframe requested by the seller. On top of that, your options when it comes to financing are limited due to whatever reason.

 

A number of investors have had to let these investment opportunities disappear because they were ignorant of their alternative financing options. There is a silver lining however. These opportunities do not have to pass you by just because you can’t scrounge up the financing by the time someone else says you should.

 

We’ve extensively discussed bridge loans as a useful interim financing option, and they can work very well for a multifamily property while you’re busy ironing out a permanent loan solution. They may carry higher interest rates, but having to pay more up front should not be the concern as much as the long-term profit you can potentially generate on that lucrative investment.

 

Do you have a few issues with your credit, a lack of consistent cash flow, or do you need to close in as little time as possible? These are all worthwhile reasons to consider a multifamily bridge loan as they overlook delays and address borrowing ability challenges.

 

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Why You Should Work with Park West Capital

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When you need money fast to fund your next investment opportunity, not only is time of the essence, we know how important it is to work with a reputable lender. At Park West Capital, we have been providing our clients exceptional, professional service for years and we’re very proud to say that our rating speaks for itself.

 

On the Better Business Bureau website, we currently have an A+ rating! Numerous clients have worked with us to assist them with financing the real estate opportunities overlooked by others. We attribute our ongoing success to our focus on staying to true to our guiding principles and assisting entrepreneurial real estate investor clients in growing their real estate portfolios by providing funding resources through no-hassle bridge loans, low documentation loans, construction finance, and more. We strive to make the entire process simple and enjoyable while ensuring that buying your investment asset remains seamless and stress-free.

 

If you need alternative real estate financing, we’re definitely the ones to call.

 

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

A Greater Number of Renters Means More Rental Development Opportunities

apartment-for-rentFor more than five years now, apartment rents have jumped by over twenty percent as developers seek to meet the rising demand for apartments. In fact, over 350,000 apartment projects will be emerging this year. The median age of the people renting these apartments is about 32, with millennials comprising just over fifty percent of renters. These millennials prefer apartments versus the traditional single family home and have a greater likelihood of remaining renters on a long term basis.

With so many renters seeking small to medium-sized buildings for rent, there is a strong demand for mid-range rental projects. As interest rates rise and housing inventory remains tight, rental development is an attractive prospect with plenty of opportunities that require moving quickly, and that’s where alternative real estate financing can make a significant difference. Whether it’s working with capital during the construction process or land development, closings are faster with an alternative lender and there is a multitude of flexible options including low documentation loans and bridge loans.

Are you considering investing in a multi-tenant rental property or a commercial project? Give us a call and we’ll be happy to discuss your quick lending options.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Development Finance 101

devFinanceIf there’s one way to generalize the process of financing used for the purpose of funding a new commercial or residential development, it would be called “development finance”. The term also covers things like bridge loans and all types of project developments.  In most cases, the finance ranges between sixty to seventy percent of a development’s hard cost to construct, and it does not take into account the value if any work was completed. Since it’s typically funded by tranche drawdowns, the work can be optionally paid for by drawing funds out of your mortgage.

Now that you have a basic understanding of what development finance is, the question turns to when it would be used. There are a multitude of scenarios where it can be utilized that include but are not limited to converting a residential space into a commercial property or refurbishing an office. It’s flexible enough to cover a project as small as a single unit or a large multi-unit project. It’s particularly popular for Build-to-Let projects, Residential Income Properties, Owner Occupied business locations and it also comes in very handy when you need to cover sales period funding.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Bridging Loans: A Great Solution for Quick Money Loans

loanBridgeLast time we talked a little more about bridge loans. Today we’d like to concentrate on Bridging Loans, which, like Bridge Loans, are intended to assist the borrower with filling a financial gap. Bridging Loans are typically short term and in most cases are based on solely on interest. A major perk of these loans is that they can be agreed upon within a relatively short amount of time, which makes them ideal if the applicant has a situation where time is of the essence, such as a property closing date, for example.

Bridging Loans are based on a property’s value and the applicant’s ability to pay it back, also known as the “exit strategy”. While the ability remains important, it is not as critical a factor as it would be when applying for a basic mortgage. Because of this, decisions can be made quickly when it comes to receiving loan approval.

The terms for most Bridging Loans are often as little as twelve months to three years, with an LTV of nearly 70%. However, there is the possibility of securing 100% LTV with additional security. Bridging Loans do not have any early repayment fees attached to them.

Do you need money fast? Get in touch us and we’ll be happy to tell you more about Bridging Loans.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Reasons to Consider a Bridge Loan

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Bridge loans maintain a high degree of popularity in certain real estate markets. As to whether or not they’re the right decision for your needs, you’ll need to evaluate several factors. Most buyers take out these types of loans to purchase another property before the existing one has been sold.

 

With that in mind, a bridge loan is a temporary loan that “bridges the gap” between a buyer’s new mortgage and the sales price of the new investment property, in case the existing investment property has yet to be sold. These loans are tied to and secured by the existing commercial property or multifamily investment and their guidelines tend to vary based on the lender. While the whole “buying a second property before selling first” scenario is common in bridge loans, there are additional reasons where a bridge loan can provide a worthwhile solution:

 

  • Buying property at an auction.
  • Buying-to-let.
  • Developing/refurbishing property before full capital is available.
  • Developing an uninhabitable property (when a mortgage is unavailable).
  • Short-term working capital for a business.
  • Covering short-term cash flow issues or transaction deadlines.
  • Financing unexpected tax liabilities.
  • Purchasing land/property before planning permission or a lease extension.
  • Borrowing against a property’s value as opposed to its purchase price.
  • When interest must be deducted without repayment of the loan.

 

Give us a call and we’ll be happy to help you figure out whether a bridge loan is right for you.

 

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Single Tenant Versus Multi-Tenant Commercial Real Estate

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For every investor that chooses to focus on single tenant properties, there are perhaps just as many that prefer to stick to multi-tenant properties. Instead of having to go through the process of closing ten individual transactions, they have the ability to get ten units in a single deal. This may come at a higher cost per property, but there is a valid argument to be made for closing a few deals in a year versus having to close several just to reach the same objective.

With a single tenant property, lease terms are typically longer, about ten to twenty years versus multi-tenant where most leases average about seven years. A stable increase in rental stream plus passive management responsibilities and little capital requirements also make a strong case, in addition to higher value retention. NNN leases are another major difference with single tenant commercial real estate, requiring the tenant to deal with ongoing expenses such as maintenance, repairs, utilities, and taxes. These leases are effective in protecting investors against the possible financial fallout of a multi-tenant property that happens to lose tenants. Investors should be aware that capital appreciation in a single tenant is typically modest.

Multi-tenant commercial real estate is generally considered a riskier first-time investment. It is vital to assess its prospective value based on economic conditions and the investor’s wealth objectives. These properties require active management, periodic capital requirements and have increased susceptibility to value loss during down cycle. However, if the market cycle is strong, there is higher upside potential.

When determining whether to go with single tenant or multi-tenant, it may be best to focus on the opportunity then how many units are within. A single tenant property may provide a greater return, but if you buy a commercial building or a multi-unit property there is the possibility of it appreciating much quicker than any single unit.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Value Added Financing Opportunities with Park West Capital

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Our value added financing options are a fantastic opportunity to obtain funds quickly for various commercial real estate and multifamily projects. The U.S. has many areas with strong markets where new construction is constantly springing up, as well as rehab properties that can offer lucrative investment opportunities. Park West Capital also has flexible acquisition financing opportunities for time sensitive investments.

If you’re looking to rehab a rental income property, we can provide the money. Regardless of whether you intend to keep the property for use as a rental or if your intentions are to resell it for profit, we provide rehab loans at very competitive rates with most programs funding in less than 30 days

A major difference when working with us as opposed to conventional commercial mortgage lenders is structural issues. In the majority of cases, if your property—rehab or otherwise—has significant structural issues, you may have a difficult time convincing a lender to provide the financing, as the majority of your retail banks, community banks, and large lending institutions require stable and fully operating assets. This is especially true if the property in question is not worth the amount of money that’s being requested and you seek financing on the after repair value to maximize your profits.

Besides rehab loans and properties with structural issues, we can also assist with any questions you may have about lease-up opportunities associated to tenant retention and or tenant construction build outs.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Real Estate Investing in 2017

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Are you planning on getting started with real estate investing in 2017? First time investors have a tremendous wealth of opportunities to find lucrative properties that can potentially result in substantial investment income, but it’s important to understand some of its fundamentals to ensure a process that involves as little risk as possible.

Real estate is an asset form where liquidity is limited compared to other investments. It depends heavily on capital (this may also be gained via mortgage leverage) as well as cash flow. Failure to fully comprehend such factors and lacking the proper management can make it hard for first time investors, often resulting in negative cash flow which may result in having to resell a property for less than what it was originally purchased.

Risk management, net operating income (NOI), capital appreciation, these are all important concepts to understand before dipping your toes into real estate investing. Once you’ve done your homework, we can assist with providing the knowledge and funds necessary if you’re eyeing a worthwhile project or opportunity.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.

Choosing Your Private Money Lender

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Any major business venture requires a significant degree of risk, and this is no exception when it comes to real estate investing. Individuals that are just beginning to dip their toes into investing may be wary about taking out a private money loan with a lender that may not be as widely known, but it’s largely a matter of doing your homework and making sure to take the time to carefully choose your lender.

It’s imperative that you thoroughly investigate your private money lender. You can start with easy steps such as checking whether their website is legit. Assuming it allows you to fill out applications online, is the website secure? Is the lender’s contact information easily accessible? You can then move forward by contacting the company such as asking for referrals, whether they have legal contracts or attorneys. What are the contract terms? A reputable lender will be happy to share some of these details with you. It also wouldn’t hurt to have your own attorney give the contract a look.

At Park West Capital, we have over a decade of experience specializing in real estate financing opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs.

This update is provided to you by Park West Capital. We have over a decade of experience specializing in real estate financing and commercial lending opportunities. We have assisted numerous clients with growing their real estate portfolios and providing the funding resources. We firmly believe in accountability, excellence, integrity, entrepreneurship, and teamwork. Contact us at 888.808.9417 to learn more about how we can professionally assist you with your investing needs or fill out our hard money loan application and we’ll get in touch with you.