LURAs: Land Use Restrictive Agreements and the LIHTC Program

LURAs: Land Use Restrictive Agreements and the LIHTC Program

If you’re a multifamily investor/developer interested in using Low Income Housing Tax Credits (LIHTCs) to fund the construction or rehabilitation of a multifamily property, you will need to agree to limit rents for a certain period of time, as well as to abide by other restrictions. All of these stipulations will be put forth in a contract called a Land Use Restrictive Agreement, or LURA.

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What is Defeasance and How Does it Work?

What is Defeasance and How Does it Work?

Defeasance refers to the replacement of the collateral of a loan with securities (generally fixed-rate government bonds) that will offer a lender an equivalent return. In many cases, borrowers will need to purchase U.S. Treasury bonds to conduct defeasance, though other types of government-backed securities may be used in some scenarios.

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Do You Need a Business Plan for Apartment Investing?

Do You Need a Business Plan for Apartment Investing?

While to some, apartment investing may sound like a passive hobby, for most successful real estate investors, it’s a highly involved business endeavor. So, if you want to give yourself the greatest chance of succeeding in the multifamily investing game, writing an effective business plan is key. No matter the size of your potential investment, a business plan can help clarify your goals, as well as bringing potential obstacles to your attention. 

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Small Apartment Loans: The Best Options for Borrowers

Small Apartment Loans: The Best Options for Borrowers

While there’s nothing small about millions of dollars, in the multifamily finance industry, apartment loans ranging from $1 million to $7 million are generally considered to be ‘small’ loans. This isn’t to minimize the importance of these loans to the investment market-- simply to differentiate them from the $10, $20, and $30+ million loans that are often offered to larger institutional investors. In fact, in terms of loan origination, these ‘small loans’ are perhaps the fastest-growing segment of the multifamily financing market. 

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2019 Apartment Industry Statistics: What You Need to Know

2019 Apartment Industry Statistics: What You Need to Know

If you’re planning to expand your multifamily investments this year, it’s important to have a good understanding of the current state of the industry. By doing so, you’ll be able to make more informed choices about where to invest, how to invest, and if you should invest at all. To help you gain a better appreciation of the apartment and multifamily market this year, we’ve provided some of the most essential apartment industry statistics below.

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What are the Pros and Cons of Owning an Apartment Complex?

What are the Pros and Cons of Owning an Apartment Complex?

Investing in an apartment complex is one of the most time-tested ways to build wealth. In fact, multifamily ownership has an incredible array of benefits, including cash flow, the ability to finance properties with a limited amount of money down, and incredible tax benefits (just to name a few). However, apartment investing isn’t always sunshine and daisies; investors have to put in a lot of hard work to make sure their properties turn a profit.

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Agency Loans for Multifamily Properties: What Borrowers Need to Know

Agency Loans for Multifamily Properties: What Borrowers Need to Know

If you’re interested in purchasing or refinancing a multifamily property, getting the right type of financing is key. Fortunately, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, also known as the ‘agencies,’ provide some of the best loan terms on the market. In fact, in 2018, the agencies issued more than $143 billion in multifamily loans, with Fannie Mae issuing more than $65 billion of loans and Freddie Mac issuing around $78 billion in multifamily financing. 

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What are the Best Cities for Multifamily Investing?

What are the Best Cities for Multifamily Investing?

2018 was a great year for apartment investing-- and the first half of 2019 hasn’t been too bad, either. Though some are concerned about an increased supply of properties on the market, as well as potential increases in interest rates, now is still an incredible time to purchase a multifamily property. To help give you some ideas about where you might like to invest, we’ve listed some of the best markets in the U.S. to invest in apartment buildings in 2019 and beyond. 

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Raising Unsecured Debt In Israel: A Competitive Financing Alternative For U.S. Multifamily Developers

Raising Unsecured Debt In Israel: A Competitive Financing Alternative For U.S. Multifamily Developers

Israeli investors are seeing many U.S. commercial real estate companies and multifamily owners contemplating Israeli debt-based financing as an alternative avenue to obtain competitive capital. Prominent multifamily commercial real estate owners such as The Cornerstone Group, Copperline Partners, and The Related Companies are just a few of the firms with bonds currently being traded on the Tel Aviv Stock Exchange.

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