Mortgage Rates – Why Are They Moving Up?

May 31, 2013 1 comment

It is not time to panic if you have already refinanced your home or commercial property.  If you haven’t, it may be time to locate the oxygen mask above your seat.

In a Freddie Mac press release this week a spokesperson blamed the upturn on the Feds changing policy on buying bonds.  The lack of government support may require the bond rates to move even higher to attack buyers.

If you’re a home buyer expect to pay higher rates in the months to come.

If you are looking to finance a commercial or multi-family loan, anticipate less of a loan.  This is the consequence of high rates against debt to income ratios.

 

Contact:

Paul Horvitz

Dominion Mortgage Corporation

paul@dominfin.com

www.dominfin.com

Categories: Dominion's Blog

Where is commercial real estate loan money coming from?

May 10, 2013 Leave a comment

That’s the question we hear often.  We all know some banks finance real estate.  We all know most banks love apartment deals.  We also know that FHA and Fannie Mae like apartments, but they also like healthcare loans like skilled nursing and assisted living.  There is always the SBA if you’re an owner whose business operates out of your commercial real property.  Then there is an insurance company if you have a retail commercial or industrial real estate loan with a rock solid tenant or a long term lease.

The commercial mortgage securitization market is resurging after years of bad deal work outs.  These loans are not easy to get but for $10,000,000 and up you can get traction if you have a solid piece of commercial real estate.

Oh yes, there is hard money and the opportunity funds.  Hard money is not only more expensive, as you probably know, but it’s also short term or “bridge oriented”, one to three years, at rates much higher than banks when including points.

We are often asked, “Is there a company, a lender who covers all those commercial real estate products?”  Yes, we do offer loans on healthcare and commercial real estate.  DOMINION prices its loans based on risk from cheap to hard money and we do it quickly and fair.

Contact:

Paul Horvitz

paul@dominfin.com

www.dominfin.com

Categories: Dominion's Blog

Getting a mezzanine or preferred equity investor.

April 30, 2013 Leave a comment

The essential elements to attract a mezzanine loan or preferred equity investment for your real estate project is knowledge of the market you’re in, the product you serve, and the value you have to the market.

You are, in reality, taking on a financial partner when you enter into an equity investors’ realm.

Most equity investors specialize in certain asset classes.  Therefore, you need to connect to that investor segment to which your project is most suited.  You also have to program your sponsor profile to achieve the maximum success.  Be an expert in the real estate segment you operate in.

Sometimes I am asked what the difference is from borrowing from friends and family rather than from an equity investor.  My answer is always, “You have the friend or family member to comfort you if the deal goes bad, provided you didn’t borrow from them.”

For more information about Dominion and its real estate mortgage loans, visit www.dominfin.com.

Categories: Dominion's Blog

Real Estate Loan Defaults – Sonar Pings Have Found The Bottom

May 23, 2012 Leave a comment

Yes it is true.  The bottom of the sea of real estate’s loan defaults may have found the elusive bottom.  The proof is in that we may know the true extent of the wreckage that is the real estate melt down.

Paul Horvitz, President of DOMINION MORTGAGE CORPORATION, a national real estate lender said, “I have been through many bust cycles in my over 35 years in mortgage lending, both residential and commercial.  The true bottom has always been located when all the loan defaults, real and anticipated, have been accounted for.  This I believe signals that we know the extent of the crisis.  Private and public capital can now work to complete the salvage of the toxic assets and begin to blow good air into the tanks of recovery.”

If Mr. Horvitz is correct, we may all find relief soon.

For more information about Dominion and its real estate mortgage loans, visit www.dominfin.com.

Categories: Dominion's Blog

OPPORTUNITY FUNDS SITTING ON THE SIDELINES

April 11, 2012 Leave a comment

Billions of dollars have been raised by opportunity fund entrepreneurs for investments in real estate and real estate note assets.  Most of the money remains on the sidelines.  The multi-billion dollars in CMBS re-discount and asset purchase that has certainly been looming on the horizon has yet to yield pay dirt for most fund managers.

The savvy managers are now repositioning their funds to take advantage of other real estate equity and mezzanine opportunities that still get the high yielding returns that they have been waiting to get for 5 years.  These managers are now looking at putting equity and mezzanine debt behind conventional construction transactions that have solid pre-leasing and/or build to suit tenants.

The types of properties that have been drawing interest from fund managers are:

  • Assisted Living
  • Multi-family
  • Industrial
  • Retail

The slower “get in the game” property types are:

  • Skilled Nursing
  • Office
  • R&D
  • Special Purpose
  • Residence Subdivisions

Stay tuned for more input regarding this emerging marketplace.  DARA, Dominion America Realty Advisors is currently active in placement of mezzanine and equity debt in these markets.

For more information about Dominion and its real estate mortgage loans, please visit www.dominfin.com.

(310) 477-3041

Categories: Dominion's Blog

The City of Angels Fund

August 10, 2011 Leave a comment

Dominion Mortgage’s subsidiary, Dominion L.A., has announced the
formation of “The City of Angels Fund”.

While Dominion remains the national real estate mortgage provider,
Dominion L.A. has always maintained a mortgage lending presence in the greater
Los Angeles area.  Now The City of Angels
Fund defines its Los Angeles concentration further to also consider buying
distressed real estate in and around the City of Los Angeles.

For more information about Dominion and its real estate mortgage loans, visit www.dominfin.com.

Paul Horvitz

paul@dominfin.com

Categories: Dominion's Blog

Healthcare Real Estate Securitization – June 21, 2011

June 21, 2011 1 comment

For a very long time the capital markets have neglected real estate lending and as we all know, banks and other lending institutions have not picked up their appetite for making mortgage loans.  Recently, there has been an emergence of new commercial real estate loan securitizations.  The problems that existed in the past have been addressed with more stringent lending parameters and enhanced underwriting.  It is only a matter of time that a successful real estate securitization market will be looking to diversify the types of real estate loans placed into these CMBS pools.  One of the most secure forms of real estate lending over these years of uncertainty has been healthcare related real estate.  With the aging of the population, healthcare becomes a major business sector of our economy.

Commercial backed mortgage securities targeted specifically for long term care facilities, assisted living facilities and other medical related real estate loans is soon to be a reality.  Dominion Healthcare Financial is at the vanguard of this new reality and is making steps to secure a bright future for healthcare and medical related real estate in the securitization market.

I invite you to get on board the express train while it is still in the station.  Join us in our quest to make this a reality.

For more information about Dominion and its real estate mortgage loans, visit www.dominfin.com.

Paul Horvitz

paul@dominfin.com

Categories: Dominion's Blog