Real Estate Investing Podcast

Case Study of a Commercial Real Estate Bridge Loan

This podcast outlines a recent loan we originated, secured by a strip shopping center located in Ohio. This loan was compelling based on the income of the property. The attractive income outweighed the negative factor of the property being far from our office.

How to Value Income Property

This podcast addresses the issue of how to value income property, in the context of making a loan secured by an income property such as a shopping center or apartment building. The concept of the capitalization rate is introduced.

Assessing the Risk: Is a particular SFR Trust Deed Safe?

This podcast explains the pricing and terms private lenders can expect when lending to established, high volume single family residential rehabilitation specialists. It also explains the loan-to-cost and loan-to-value underwriting criteria that are typical in our market as of mid-2011. The current market is profitable for both lender and borrower, and provides an appealing opportunity for real estate investors looking for high current yields with a solid margin of safety.

Why We Chose Bridge Lending

This podcast explains the organic process through which we launched our residential bridge lending program. The founder of Standard Capital had cash available and was looking for something very safe with a fairly short maturity as an interim investment. The residential bridge loans went so well that Standard Capital launched a program allowing other investors to participate in these investments. The process was not planned out ahead of time, it evolved naturally as it became clear that the program really works.

The Three Sub-Markets of Trust Deed Investing

This podcast examines three different sub-markets within the trust deed investing universe: (1) single family residential "fix and flip" six-month loans; (2) single family investor loans of up to 24 months; and (3) commercial real estate bridge loans of 12-24 months. The podcast compares and contrasts these three areas from the investor's perspective. Please watch our blog as we will be posting one new podcast roughly every week. There will be about 30 podcasts total in the series, and this is the seventh. If you are interested in learning more about what we do, please sign up for our newsletter at www.arixacpital.com or give us a call at 310-846-1754.

WSJ: Home Market Takes a Tumble

This article details that house prices continue to drop in the U.S., down 3% in the past year on average. Standard Capital is a bridge lender to builders who buy homes from banks and rehabilitate the homes before re-selling them for a profit to families that occupy the houses. The drop in home values means lower profits for our borrowers. We see affordability becoming attractive which should help create a floor for home values even as prices continue to ease in the next 12 months or so. In our view, as long as the Federal government continues its policy of providing low-cost mortgages, the market is unlikely to drop dramatically from current values. Click here to access the article on the Wall Street Journal website. -or- To access a PDF of the article, please click here: WSJ_Home Market Takes a Tumble