Daniel Biel’s Post

Recently Funded New Construction! ***Borrower was PAID $3,603.98 at closing!*** Non-owner occupied investment property in Florida where borrowers live full-time about a mile from the subject property. Loan amount: $381,570 Property appraised out at $592,000 prior to closing (64.45% LTV). **$210,430 in Day One equity!!** The home being built is a 4 bedroom, 3 bath, 2-car garage, 2,300 square foot house, which will rent out for $3,200 a month. How were we able to PAY the borrower at closing you might ask? They already owned the land and had spent $122,396.02 out of pocket in total, and since they owned the land over 2 years we were able to give them credit for all that equity toward the LTC and fund 100% of construction AND cut them a check back for $3.6K! They now have $210,430 in equity plus positive rental cash flow. If you have land you've owned for over 2 years, this same strategy can be used for single homes like this project, OR full subdivisions! If 100% construction funding sounds appealing to you let's hop on a call. Funding available in all 50 states on projects $250k - $100mil! *up to 85% LTC with all-in-one program for projects involving new land purchases, horizontal, and vertical construction.

Do you want to know how the government is investing in new and existing homes to make them safe and sustainable? Check out this article from Construction News, which reveals the details of the £6bn Affordable Homes Guarantee Scheme. You’ll learn how this scheme can help you finance your dream home, upgrade your current property, or benefit from high-quality, low-cost housing. Don’t miss this opportunity to find out more about this exciting initiative! Click the link below to read the full article

My Strategic Pivot: From Quebec Construction to Ontario Real Estate Investment... I made a significant shift in my career by moving from Quebec to Ontario, focusing on acquiring multi-unit residential buildings instead of continuing in the custom construction business. This move was motivated by Ontario's streamlined financing process for multi-unit properties, including programs like interest-only loans that are better suited for my investment strategy. Custom construction involved selling assets upon completion, missing out on real estate's long-term appreciation. Observing the profits buyers of my custom homes made on resale highlighted that I was not leveraging one of the real estate's most lucrative benefits: property appreciation. This realization led me to pursue investments with long-term growth potential. In Ontario, I've acquired properties under interest-only loans, allowing me to renovate and re-rent. This approach, while facing challenges like high-interest rates and temporary revenue dips, is strategic. Vacating buildings for renovations ensures efficiency and maximizes rental income potential. The goal is substantial rent increases, with projections of tripling or doubling current rates. The strategy involves refinancing properties after improvements to extract the initial investment, which then funds future acquisitions. This cycle aims to create a self-sustaining portfolio, leveraging government subsidies for developers to achieve better financing terms and support growth. Transitioning from custom construction in Quebec to multi-unit residential investment in Ontario represents a strategic realignment towards long-term wealth generation. Through careful planning, leveraging financing programs, and government subsidies, I aim to build a portfolio that not only sustains itself but also facilitates continuous growth.

50 basis points can make quite a difference in a commercial real estate development. Assume a $40 million, 6.5% rate construction loan that is drawn over a 24 month period for a multifamily apartment build. The loan balance is $0 in month 0, $20 million in month 12, and $40 in month 24. The average loan balance over two years is therefore $20 million. Over two years, the project will incur $2,600,000 in interest costs. ($20M average balance * 6.5% * 2 years = $2,600,000) After a 50 bps reduction, this interest cost will drop from $2,600,000 to $2,400,000. The $200,000 savings could be theoretically be used to add an entire extra apartment unit. But more practically, because the design is probably set in stone, the $200,000 can instead be "used" to simply reduce the equity and debt requirements of the project while projecting the exact same set of revenues. To the extent the rate reduction doesn't cause any immediate compression in cap rates or increases in development costs (which of course they will eventually in theory if not in practice), the rate reduction is purely accretive to the project. Now cut rates a few more times, and we can see how a lot of sidelined projects with marginal returns are about to re-enter feasibility. Should be an interest next 12 months! #commercialrealestate #realestatedevelopment #realestatefinance

Insights from the National Multifamily Housing Conference (Video) https://lnkd.in/dDaYJui #CRE #REIT #Multifamily #Housing #Fed #Rate #Inflation #CPI #Loans #construction

My favorite phase of industrial real estate development is the early deal, due diligence, and redevelopment phase. It starts when we put an LOI on a property and continues through closing. This 3 to 6-month period is packed with hard work, excitement, and stress as we: EXPLORE POSSIBILITIES: Study macro trends, local markets, submarkets, and the competitive landscape to ensure the project is viable and has a competitive edge. CONDUCT RESEARCH: Examine codes, ordinances, neighborhoods, stakeholders, and local political climates. ANALYZE PHYSICAL CONDITIONS: Identify challenges with access, topography, utilities, soil characteristics, and environmental conditions. EXAMINE SOFT SITE CHARACTERISTICS: Assess boundaries, easements, deed restrictions, access agreements, rights-of-way, master plans, water rights, air rights, and mineral rights. ENVISION DETAILS: Plan the fine details to make the project attractive to occupiers, local residents, investors, and municipalities. COLLABORATE WITH EXPERTS: Work with top leasing brokers, architects, engineers, and contractors to craft the design, study viability, mitigate risks, and softly market the project before significant capital is committed. DEVELOP BUDGETS: Create detailed budgets based on napkin sketches and years of experience. MODEL THE BUSINESS PLAN: Use Excel and Argus to iterate on capital strategies, partnership structures, demand assumptions, space and site plans, phasing plans, and exit strategies. LOBBY AUTHORITIES AND RESIDENTS: Engage municipal authorities and local residents to bolster public support and assess the probability of project approval. SECURE FUNDING: Create decks and pitch to lenders and equity investors. NEGOTIATE AGREEMENTS: Handle purchase and sale agreements, loan documents, partnership agreements, development agreements, listing agreements, and consultant and contractor proposals. ADDRESS DUE DILIGENCE ISSUES: Negotiate with the seller over discovered issues. IDENTIFY RISKS: Qualitatively and quantitatively assess potential risks, identify mitigants, and model upside and downside scenarios. MAKE THE DECISION: Process all information, commitments, and gut feelings to decide on going hard on earnest money and closing on the property. This phase is intense, but it’s also the most rewarding part of the process for me.

Developers look for deals on dirt With fewer projects breaking ground and less demand for parcels to build on, it would make sense that landowners might back off their pricing demands. Construction loans have been increasingly difficult to secure over the last couple of years, and many equity providers have also pulled back from...Read More>>> https://buff.ly/3ZrohEo #Insulation #ConstructionNews #MultiFamily #CommercialInsulation #MultiFamilyConstruction #ApartmentConstruction

12 GOLDEN RULES TO INVESTING INTO OFF THE PLAN (OTP) PROPERTY Note: Visionworks sources existing, new and existing, and OTP properties... it all depends on our client's goals and circumstances. The following list is not exhaustive, but it's a good foundational guide for lay investors buying OTP. 1. Property is a medium to long term asset class so you need to purchase with a 'Buy & Hold' mentality. 2. Do not buy property in 'greenfield' sites (undeveloped land in an urban or rural area with no infrastructure), instead choose 'infill' sites (tracts of empty or under-utilised land in urban and built-up areas with existing and expanding infrastructure and lifestyle surrounding it). 3. Capital growth is directly related to the amount of surrounding infrastructure and lifestyle attractions in an area, not the amount of land you are buying. 4. A quality 'owner occupier grade' property will always perform and look better over time, whereas an 'investment grade' property may look good to begin with, but after about year 5, just as your depreciation has diminished, your maintenance costs will rise while your rental yield softens due to the property looking tired. 5. If you buy 'owner occupier' grade quality to begin with, the gross yield may only start at around 4%, but these properties create a demand and first the rent goes up, then the capital growth increases; this story keeps getting better over time. 6. Always choose a premium developer who has hired a premium builder (the builder will do due diligence on the developer before agreeing to build the project). Premium builders and develops not only have the resources to complete the project, the end photographs are generally better than any of the initial artist images, plus they'll keep you updated with construction updates so you're not left wondering what's going on. 7. Always do your homework and check everything a salesperson has provided you, including visiting previous projects that the developer/builder have constructed, plus look at their online reviews. 8. Never engage a lawyer or mortgage broker associated with the developer. Do all the searches your lawyer recommends. 9. Have your deposit ready and ensure your mortgage broker has given you a reliable borrowing capacity. 10. Ensure you do not change your financial circumstances while you're waiting for settlement, unless it's for the better. 11. At the end of the build, organise 3 Defect Inspections; one pre-settlement, one post settlement, and one 6 weeks before your builders' warranty ends. In this way, you'll have the peace of mind that ALL your defects are addressed without extra cost to you, and if they aren't, you now have the paperwork to ensure you're legally protected. 12. Remember trust should be earned, never given. If you'd like more information, or a free consultation (free of cost or obligation), contact 0414 875 900.

Building ground-up in today’s market demands more than just capital—it requires strategy and foresight. Investors that work with Trident Capital Connections during uncertain market cycles understand that positioning a portfolio for growth takes careful planning and the right capital partner. Ground-up construction can offer that distinct edge. By facilitating projects from start to finish, Trident Capital Connections plays a pivotal role in builder success by leveraging the broader economic landscape. Navigating Economic Uncertainty In times of market volatility, it’s important to facilitate opportunities that make good economic sense. With ground-up, investors have tighter control over costs (think design, square footage, build materials, finishes), timelines, and overall project value. Because of this agility, inflation or changes in material costs become more manageable, giving builders more room to adapt. Trident Capital Connections offers investors flexibility and strategic insight. We connect our clients to flexible, innovation-forward lenders that pave the way for investors to make their projects more resilient. It’s a huge win-win, especially if market conditions shift. Targeting Demand Ground-up projects allow investors to build precisely where demand is highest. Whether it’s targeting emerging rental markets or filling the need for affordable housing, ground-up investments allow clients to develop properties that align with specific market needs. Your ability to build demand in rental hotspots like Dallas or Charlotte, allows us to help with your portfolio growth and become a long-term partner for your funding needs. Long-Term ROI in a Shifting Landscape Ground-up projects not only align with demand but often yield better returns over the long run. Trident Capital Connections helps investors capitalize on these opportunities by partnering with experienced construction lenders who recognize that newer builds command higher rental and sales prices, which offers a natural hedge against downturns. By facilitating these projects, we help our clients maximize long-term value while staying agile in the face of market shifts. Trident Capital Connections can help you take that new construction build and turn it into a long- or short-term rental. Give us a call TODAY! 281-415-2488 Broker nmls 2639490

CMHC announced yesterday significant changes to the Apartment Construction Loan Program (ACLP) with changes effective Friday, November 22, 2024.  The major changes are as follows: 1.     Extending the program from 2027/8 to 2031/2 2.     Expand eligibility to include: a.     On- and off-campus student housing. b.     Independent seniors housing. 3.     Remove minimum requirements related to accessibility and energy efficiency. 4.     Changes to the point system from previously having one set of points to access all the program benefits it has now changed to an MLI Select style system of points and tiers of benefits (the stronger your social outcome the better the benefits you can access) 5.     Introducing the ‘Frequent Builder Initiative’ for established housing providers with financial strength that have a proven track record in delivering projects and in working with CMHC. Approval under this initiative allows for faster approvals, underwriting flexibilities and conditional funding approved for future years 6.     Two new funding set asides a.     $100M committed to build apartments above existing shops and businesses b.     $500M to build new apartments that use prefabricated or innovative homebuilding techniques More details to come shortly.