Category Rates & Tools

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“Expected Rise in Interest Rates and Asset Pricing Decline Have Some Investors, Borrowers Fuming”

On September 24th 2016 when the Federal Reserve leaders met to set interest rates, nearly 35% of markets participants expected an overnight rate hike that was paused to exceed 50 – 75 basis points – that never occurred. Everything now points to a rate increase at the end of 4Q2016. How does that will affect investors and borrowers? This short piece of content is not intended to give economic, financing advice, or reporting the news. The point of this fragment is only to convey “observable trends and unilateral comments” giving the reader a quick glimpse about future forecasts.

The job market is fairly strong and that’s a great indication for rental strengths in top tier markets, which in turn help alleviate the fear of asset pricing...

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“3 Important Rules For Commercial Real Estate Borrowers Who Seek To Obtain Better Loans Must Know”

Rule #1 – Location, Location, Location and Options

Location does not apply only to economic trends, cycles, real estate acquisition and development.  It is also imperative when it comes to choosing and working with a lender.  If you are an investor in Boston and own 1,500 units of multifamily on Mass Avenue, it may be easier to acquire properties in your local market, as opposed to Hamilton Heights in New York , especially if you are unfamiliar with such market and have no local representation. Interestingly, local lenders tend to have better deals than out-of-town lenders (typically for experience sponsors); however, this doesn’t usually translate to better financing options.  For instance, take a look at lender A and lender B.

Lender A (Boston, MA – Mass Ave) Lender B (New Yo...
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What The Heck Is Exactly Mortgage Interest Rate?

What exactly is mortgage interest rate? First, let’s define what mortgage, interest, and rate are. It is important to note that the brief explanation herein is only for quick comprehension. These terms go into much more in-depth details in economic, real estate and finance literature. The aim of this short piece is to give the reader a very short, clear, and precise understanding.  Investopedia describes mortgage as follow “A mortgage is a debt instrument, secured by the collateral of specified real estate property that the borrower is obliged to pay back with a pre-determined set of payments.”

Simply put a mortgage is just a “dead pledge”. The word “mort” is derived from origin of Latin, later Old French meaning “dead” and the word “gage” meaning “pledge”...

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