No business opportunity is a sure thing, but detailed research can help your company make informed and highly profitable real statements investments. One of the most important pieces of information a company should identify is which industry niches are the best fit for investment. The odds of investing in industrial properties, for example, are hard to predict due to political uncertainty and unrest.
Commercial lending opportunities in other markets, particularly multifamily, continue to perform well regardless of forces that are impacting the rest of the industry. In fact, data from the Mortgage Bankers Association revealed that multifamily mortgage loan originations increased by 28% in Q2 this year over the previous quarter, said CoStar. A number of key considerations are keeping the market primed and ready for companies to make strategic investments. Understanding these factors will also sheds light on why investments in this sector represent a smart option for your company.
1. Rental Forecasts Remain Optimistic – A critical trend driving multifamily commercial lending is the fact that the demand for rental properties continues to rise. A recent study completed by the National Multifamily Housing Council and the National Apartment Association said that the industry is near, with 4.6 million new rental spaces needed across the country by 2030. Several cultural trends, including delayed marriage and shrinking interest in homeownership, are making investments in multifamily an attractive long term bet.
2. Commercial Lenders Keep Evolving – Stagnancy can turn a once bustling industry into a dead-end. Just look at the shopping mall. That being said, no one can accuse the commercial multifamily sector from resting on its laurels. According to Forbes, recent changes in the industry include a greater focus on building up neighborhoods surrounding core markets, greater reliance on analytic data and more nuanced approaches to evaluating value-add redevelopments. The more these into your own investments, the better prepared those properties will be for the future.
3. REITs Keeping The Industry Competitive – Traditional commercial lenders may not be so interested in locking down their multifamily investments immediately if not for added pressure from ambitious real estate investment trusts (REITs). These bodies of investors don’t need to depend on lenders to play the commercial real estate market, and have been purchasing up multifamily properties at an alarming activity. This activity puts the pressure on traditional lenders to make funds available to those willing to invest in multifamily, lest the best opportunities get snatched up by the new players in town.
The more time and effort you put into evaluating your options, the more likely your company will see a significant return on its investment. That’s why taking your time to research such investments is well worth the manpower and resources.
Don’t put off a tactical investment just because your company can’t get ideal financing terms from a traditional commercial lending professional. Private lenders can provide you with the capital you need to act now.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.