Capital Resources For 2019
The choices for multi-family investors
continues to grow for 2019. Sure, there are concerns about higher
interest rates, property values and high inventory but that doesn’t seem
to affect the availability of capital sources. This is good news for
property management companies. As the real estate market remains strong,
more investors will rely on property managers and property management software to support their portfolios.
Debt Funds
There are several equity funds that are providing financing for developers by way of debt funds.
These ‘bridge loans’ can go as high as 85% of the property value with competitive interest rates.
Once the property has been completely leased, the developer can move to a more permanent type of loan.
Interest Rates
Even though there have been some recent rate hikes, rates are still considered low for traditional permanent loans.
In
2018 Q4, Fannie Mae and Freddie Mac have been in the area of 4.25% –
4.50%. These loans also cover up to 75% of the property. That is
slightly higher than it was in 2017.
Sources Of Capital
Fannie
Mae and Freddie Mac still are some of the biggest sources of
multi-family loans and that is not expected to change in 2019. With a
new FHFA leader coming in 2019, will tighter restrictions be
implemented? That is yet to be seen.
The new leader will be Mark Calabria. Mark is someone who is familiar with the financing for real estate investment properties.
Banks
and other traditional sources will continue to play a key role in 2019
financing and are not expected to slow down in 2019.
About PropertyZar
PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Read more Top Property Management Blogs. Learn more www.PropertyZar.com
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