Breaking Banks: How Interest Rate Hikes Reshaped Real Estate Financing
From the Emergence of DSCR to Bank Failures: Navigating the Tides of Real Estate Financing The Fed’s rate hikes exposed weaknesses in real estate financing, leading to March 2023 bank failures. “Tightening until something breaks” became a reality. The first was Silicon Valley Bank (SVB), which failed on March 12. Three days later, Credit Suisse […]
Bond Math & Negative Convexity
Here’s Why Your Mortgage is Valuable. A little bond math to illustrate the value of fixed-rate mortgages and why the debt you’ve borrowed may be one of your greatest assets. As a real estate investor, you may not immediately think of your loans taken out as being favorable to you. However, the debt you borrowed […]
US Treasury Yield Curve
Here’s What It Means for Real Estate Investing. Media coverage this year focuses on US Treasury yields. These yields show the interest rates the US government pays to borrow money. Lenders view these rates as “risk-free” because lending to the government carries little risk. Risk-free rates are reference levels that have a direct impact on […]
Fix & Flip Rates Going Up
Learn to navigate financing options as the market evolves. Here’s what you need to know. In the past 12 months, short-term US Treasury rates have risen nearly three full percentage points. It has taken some time, but now short-term fix & flip lenders are finally responding and looking to pass through those increased costs to the borrowers. […]
Dominion Financial Services Lends $100 MM to Real Estate Investors in a Single Month
Dominion Financial Services Lends $100 MM to Real Estate Investors in a Single Month BALTIMORE, MD – For the first time in 20 years of business, Dominion Financial Services (DFS) hit the $100,000,000 milestone for loans originated in a single month back in March of 2022. The goal of a $100MM month is a result […]
