by ARTIS COMMERCIAL CAPITAL | Jun 27, 2023 | Blog
Investing in commercial real estate is a great way to generate passive income and build long-term wealth. However, diversifying your portfolio is essential if you want to maximize your returns and minimize risk. By investing in different types of properties, you can spread out the potential risks associated with any one property or market. The key is to understand the various types of commercial real estate investments available and how they fit into your overall strategy.
Invest in Different Property Types
One of the best ways to diversify your commercial real estate portfolio is to invest in different types of property, such as office buildings, retail stores, multi-family dwellings, and industrial spaces. By investing in a variety of property types, you reduce the risk associated with any one particular market or sector. Investing in multiple properties can also provide the benefit of cash flow diversification, allowing you to spread out your income across various types of investments.
Invest in More than One Location
Another way to diversify your commercial real estate portfolio is to invest in different geographic locations. By investing in properties located in diverse economic climates and regions, you reduce the risk associated with any particular market or location. Investing in different markets can also provide the benefit of diversifying your tenant base, allowing you to spread out income across various types of renters.
Invest in Development Projects
Finally, it’s important to diversify your commercial real estate investments by investing in different stages of development. Investing in both newly-constructed and existing properties could yield higher returns over time because these investments can take advantage of different tax benefits and depreciation schedules. By investing in properties in various stages of development, you reduce the risk associated with any one particular market or sector.
Diversifying your commercial real estate portfolio is essential to maximizing your returns and minimizing risk. By investing in different types of property, geographic locations, and stages of development, you can spread out the potential risks associated with any one market or sector, allowing you to maximize your return on investment. Artis Commercial Capital provides financing to property investors that want to expand and diversify their portfolios. Contact our offices today to explore your options.
by ARTIS COMMERCIAL CAPITAL | Jun 20, 2023 | Blog
Mezzanine financing is a form of debt capital that can be used to finance commercial real estate investments. It provides an alternative source of funding for property investors who are not able to secure traditional bank loans or other forms of conventional financing. Mezzanine financing has become increasingly popular in recent years as it offers the potential for higher returns than traditional methods and can help bridge the gap between equity and debt when there isn’t enough capital available from either source alone.
An Overview of Mezzanine Financing
Mezzanine financing typically involves a loan secured on the value of a property, but with a repayment structure that is more like equity than debt. The lender will usually require some form of security, such as a second mortgage or a lien on the property, and if the borrower defaults on the loan then the lender can take possession of the property. A mezzanine loan can provide a significant amount of capital for the borrower and often offers high returns for the lender, which is why it has become an attractive option for both sides.
Mezzanine financing is seen as a riskier form of lending by banks and similar lending channels, which is why commercial and private lending firms offer this solution. The repayment terms are also less flexible and typically require more frequent payments in order to reduce the lender’s risk. This can make it difficult for some borrowers, especially those with limited cash flow or high levels of debt, to keep up with their repayments. For these reasons, mezzanine financing is typically reserves for high-net worth property investments.
Mezzanine financing can be a great option for property investors looking to finance their next project. It provides access to capital that isn’t available through traditional channels, and it’s often the only way to bridge the gap between equity and debt when there isn’t enough of either source alone. Contact Artis Commercial Capital today to learn more about our equity financing solutions.
by ARTIS COMMERCIAL CAPITAL | Jun 13, 2023 | Blog
Commercial real estate financing is an important and often complex part of the industry. Knowing the difference between small balance and large balance financing can make all the difference when it comes to securing a loan for your project.
Small Balance Financing
Small balance loans are typically used for smaller commercial real estate projects such as purchasing a property, refinancing an existing loan, or making improvements to the property. These loans usually range from $1 million and below, with interest rates that can be fixed or adjustable, depending on your needs and creditworthiness. Smaller balances are often easier to secure than larger loans and they often come with more flexible terms, such as lower down payments and longer repayment plans.
Large balance loans are typically used for projects that require a much larger amount of capital, usually over $1 million, and often ranging into the billions of dollars. These loans can be used for anything from renovations to constructing an entirely new building. The interest rates on these types of loans tend to be higher than on small balance loans, and the repayment plans are often longer with more stringent terms. Large balances also require a greater amount of collateral, such as existing property or other assets, making them more difficult to secure.
The type of loan you choose will ultimately depend on your particular needs and situation. If you are looking for a short-term solution or need more flexibility in the repayment options, then a small balance loan may be best. Artis Commercial Capital provides financing solutions for both small and large development projects. Whether you need $1 million or your project requires funding in the billions of dollars, we have you covered. Contact our team today to learn more.
by ARTIS COMMERCIAL CAPITAL | Jun 6, 2023 | Blog
When you’re looking to secure funding for a large development project, you need to make sure that your pitch is on point. Investors want to know why they should put their money into your project and what the potential returns are. Crafting an effective pitch is no small feat, but if done correctly it can be the key to securing the funds needed for success.
Set Expectations
When crafting your pitch, it’s important to remember the expectations of potential investors. Investors aren’t looking for a laundry list of features or benefits; they want to know why your project is worth investing in and what kind return they can expect. Start by clearly articulating what problem or need your project will be addressing as this will demonstrate that there is a real-world need for your project and that it has the potential to be successful.
Leverage Data
Once you understand what investors are looking for in an effective pitch, you should focus on presenting the data in an engaging way. While raw numbers and facts can help demonstrate the potential of your project, they won’t necessarily draw attention or convince investors to invest. Instead, consider using visuals such as graphs or charts to help bring your data to life and show potential investors exactly how successful the project could be.
Appeal to Emotions and Generate Excitement
Finally, while an effective pitch should be focused on facts and figures, don’t forget that a large part of any pitch is emotion. Investors want to feel like they’re taking a risk on something that is worth it and has the potential to succeed. Demonstrating a deep understanding of your project, as well as its potential benefits, will help to build confidence in investors, while also emphasizing why they should trust you with their money.
By following these tips, you should have the confidence to craft an effective pitch for any large development project and secure the funding needed for success. Investing in a large project can be intimidating, but with the right preparation and presentation you can make sure that your pitch is persuasive and effective. Artis Commercial Capital provides financing up to $5 billion and more for large and innovative development projects. Contact our team today to get the funding you need.
by ARTIS COMMERCIAL CAPITAL | May 30, 2023 | Blog
Commercial construction projects are complex endeavors that require careful planning and preparation. From start to finish, there are a number of steps involved in the process. These include obtaining permits and approvals, hiring contractors, purchasing materials, and managing the construction timeline. With so many moving parts, it can be difficult for business owners to understand what is required for a large commercial construction project.
Permits
The first step in any commercial construction project is acquiring the necessary permits and approvals. Depending on the size and scope of your project, you may need to submit an application or obtain permission from local authorities. It is important to research all applicable regulations and requirements before beginning the construction process to ensure compliance with local laws. This will help streamline the project and avoid any costly delays due to incorrect paperwork.
Contractors
Once all permits and approvals have been secured, you can begin the process of hiring contractors for your project. It is important to take your time when selecting a contractor, as they will be responsible for the overall quality of work completed onsite. Be sure to get multiple bids from different contractors and thoroughly review the contracts they provide to ensure all requirements are being met.
Sourcing Materials
The next step is to purchase materials for your construction project. This includes everything from lumber and drywall to plumbing fixtures and light fixtures. It is important to bargain shop for the best prices when purchasing materials, as this can save you a considerable amount of money in the long run. As you purchase materials, be sure to keep an organized list of all items purchased and store your receipts for future reference.
Managing Your Timeline
Finally, managing the construction timeline is a key component to any successful commercial construction project. This includes setting milestones and deadlines throughout the duration of the project as well as establishing goals for each step along the way. By keeping track of progress, you can ensure deadlines are met and all milestones are achieved on time.
Commercial construction projects require considerable planning and preparation to ensure they run smoothly from start to finish. Artis Commercial Capital provides ongoing to permanent financing for large construction projects. Contact our team today to get the funding you need to ensure success from start to finish.
by ARTIS COMMERCIAL CAPITAL | May 23, 2023 | Blog
Investing in real estate has long been seen as an attractive option for those looking to build wealth and generate passive income. Single-family rentals (SFRs) provide a unique opportunity for investors to capitalize on the growing demand for rental housing, while still being able to maintain control over their investments. From high returns on investment and tax benefits, to increased cash flow and appreciation of property value – there are many advantages that come with investing in SFRs.
1. High Returns on Investment
Investing in SFRs can provide a high rate of return, as rental income is often higher than the cost of mortgage payments. This type of real estate investment also has the potential for appreciation over time, providing an added boost to your total returns.
2. Tax Benefits
As an investor, you can take advantage of multiple tax benefits when investing in SFRs. These include deductions for mortgage interest, depreciation of the property value, and a variety of other expenses related to the rental property.
3. Cash Flow
Owning a rental property means that you will have a steady stream of income coming in every month, providing a reliable source of cash flow. This ongoing income can be used to cover the costs of maintaining the property and provide investors with an additional source of revenue.
4. Low Maintenance Costs
Maintaining a single-family rental is relatively inexpensive compared to other types of real estate investments, as they typically require fewer repairs than multi-family units or commercial properties.
5. Appreciation of Property Value
As the demand for rental housing increases, so does the value of rental properties. Investing in single-family rentals can provide a profitable return on your initial investment as the property appreciate over time.
Investing in single-family rentals offers numerous benefits for real estate investors. From high returns on investment and tax benefits, to increased cash flow and appreciation of property value – these investments can be a great way to build wealth and generate passive income. If need funding specifically designed for SFRs, contact the team at Artis Commercial Capital.
