Private lending and its contribution to real estate investments
Financial Growth Strategies in Real Estate
Welcome to Asset View Capital insights, where commercial real estate finance expertise meets innovation, and success is not just a destination but a transformative real estate projects. At Asset View Capital, we pride ourselves on being more than commercial loan originators; we are strategic financial partners committed to guiding real estate investors towards enduring success.
The art of a successful real estate investment lies in the following important elements such as complete underwriting stipulations, taxes, real estate brokerage, and other legal fees.
Deal economics is a valuable process that focuses on analyzing a property transaction to gauge its potential for profitability and success. It includes evaluating market conditions, determining property value, estimating construction and renovation costs, municipal taxes, other professional charges and projecting income. Additionally, it involves assessing the associated risks and rewards, all within the framework of real estate economics, which is shaped by factors like supply and demand, economic growth, and interest rates. This comprehensive approach allows investors and stakeholders to make informed decisions that enhance the likelihood of a successful deal.
Example: In a fix-and-flip deal, you will consider the after-repair value (ARV), which is the value before considering the purchase price and the renovation budget that results in the gross revenue. However, your net return on investment needs to be determined. Other variables, such as local taxes and real estate brokerage fees, need to be factored into the costs. Whenever the return on investment is negative, it means the project is not profitable and may not attract capital partners to fund or enter into a joint venture in such a deal. Therefore, the lower the purchase price and renovation costs, the better for the project. See the models below:
Strong Credit Profile
Real Estate Portfolio Track Records
Permits and Architectural Approval Letter
Payoff Letter from the Existing Lender
Scope of Work - Construction
Rent Roll - DSCR
Entity Information
Hazard Insurance