by Marques | Dec 12, 2022 | Uncategorized
Despite the fact that most independent real estate investors have common considerations in the purchase of a single-family home, Marques Commercial Direct has noted that investors have a high preference for small apartments, multi-family, small commercial, and mixed-use buildings. In the choice of investments, decisions around the acquisition of real estate properties are guided by criteria that can help make good deals that will support long-term objectives which is always the goal of the investors.
Marques Commercial Direct started its venture in 1999 by mainly concentrating on the originations of small-balance commercial mortgage loans. For any investor looking to grow his business fast, small balance commercial mortgages are an easy way to increase the opportunity on his business as well as his income. It offers a great chance to close more mortgages in a shorter timeframe and at the same time earn more while the process is easy. But because of the test of times brought about by the global financial crisis, Marques Commercial Direct identifies the need to open its door to investment properties as its answer to the growing demand for rental properties. With the investment potential on rental properties, it was able to take a good look at the benefits. As a result, Marques Direct is one of the few to offer both residential investment and small commercial loans.
The Possible Effects
The continuous evolution in the mortgage industry is an endless challenge to real estate investors, creating tough moments for them to decide on what is the best action they have to apply and to understand the different conditions in the market. There are uncontrollable factors that investors need to consider. And because of these, it is a smart move to broaden the scope of the business approach by proposing more options that will cater to homebuyers, home developers, and investors and will give them income protection even if changes in the market will occur. It can be observed that clients are more purpose-oriented in making decisions with regards to buying different types of real estate properties and the intention is to earn, have a return on the investment through rental income, capital appreciation by resale of the property, or both. The move of business expansion by extending service in both small commercial property and investment loans is such a big leap for them to intensify their position in the industry. Business growth through diversification will open more
by Marques | Dec 12, 2022 | Uncategorized
Acquiring multiple properties can be considered a profitable business venture that generates a stable stream of monthly revenue. Market Research has shown that investors who prefer to own multiple properties outnumbered those who prefer to buy a single properties. This is especially true in Marques Commercial Direct, where buying multiple properties is more popular than buying single-family home investment (SFI) properties and other properties.
While purchasing multiple properties breeds compounded financial sources among investors, this also holds true for real estate brokers. More real estate purchases mean greater sales and commissions on their end. Below are some of the implications of purchasing multiple properties.
- Recurring business opportunities are heightened resulting from real estate investors
Most home loan borrowers only sign eight mortgages, averaging only one loan in a period of five years. This is a significant difference when compared to real estate investors, whose number of purchases far outnumbers those of these home loan borrowers. This has placed a significant challenge on real estate brokers to maintain their market strategy and keep abreast of the trends in market advertising. This ensures that their clients are constantly aware of their brand and latest promotions by frequently contacting them via e-mail or phone calls. This is to guarantee that they are on the shortlist when a new investment opportunity comes in.
- Diversifying Potential Risk
Purchasing multiple properties is a good way to lower the risk of investing. There`s a slight chance of future market shocks if you have a diverse portfolio of properties in the market (such as condos, single-family home types, apartments, or even multi-family homes).
- Ensuring a higher long-term ROI
The more properties you own, the greater return on investment (ROI) you will be able to achieve. Furthermore, you can choose to sell some of your invested properties at market value and then purchase new ones.
- Utilizing tax benefits
There are potential opportunities to profit from tax advantages through an IRS Code 1031 exchange, or the so-called 1031 exchange if you have several income properties. This means that using the 1031 exchange allows investors to defer payment on income from the sale of one property and invest the proceeds in the purchase of another. Thus, selling it and reinvesting in income properties helps you create wealth over time.
Building up a property portfolio is a risk that requires astute independent investors to consider market demands and potential income. Hence, mounting your real estate investment holdings is a hit if money, time, and creativity permit.
by Marques | Dec 9, 2022 | Uncategorized
There are numerous reasons why a business entity turns to a particular source when seeking financing for its current and future investments. From loan terms to trustworthiness. Marques Commercial Direct has a strong foothold and presence in the investment marketplace.
In identifying and choosing probable funding sources, investors working with Marques Commercial Direct always chooses the one which offers flexible financing and involves minimal requirements. This was based on a survey conducted on preferred sources for financing with around 287 respondents. The same survey indicated that compared to others, investors that Marques Commercial Direct get to work with are 2.5 times more likely to choose funding that are flexible, quick, and easy. With this, they are also about 1.4 times more likely than other investors to select a funding source based on how quickly time is allotted to close the deal and the source’s reliability.
This is different from other investors who prioritized the loan terms, lender location, and Internet ratings as the basis for their decisions when it comes to choosing a funding source. The main factors influencing how investors working with Marques Commercial Direct and other investors select a funding source may be broken down into two categories. First off, investors working with Marques Commercial Direct are often ineligible for standard bank loans due to stricter application requirements. Second, compared to others, investors working with Marques Commercial Direct frequently acquire more properties. With these, the best option for investors who work with Marques Commercial Direct is to seek a more lenient underwriting policy that makes loan approval simpler and quicker.
Investors working with Marques Commercial Direct appear to place less importance on loan terms than other investors because they often are not eligible for loans with the best interest rates. As opposed to investors working with Marques Commercial Direct, other investors are 23% more likely to name loan conditions and 4.3 times more likely to include location as their top factor when selecting their preferred loan source.
The Possible Effects
The choice of funding sources relies on who you want to attract. If the objective is to draw in independent real estate investors who often qualify for conventional bank loans, then the strategy is to focus on loan terms. However, if it is to target meeting the demands of independent investors and small business owners then the emphasis should be on flexible underwriting, simple qualification processes, and a quicker approval process.
by Marques | Dec 9, 2022 | Uncategorized
The real score of business success comes from the consideration of the several factors involved in the investment industry. As business kicks off with cash, it is expected to end with cash. Read on to know how cash flow interplays with the topmost consideration among investors.
Investors are fairly valued as they consider investment growth, location, cost, and potential appreciation.
How does each factor influence the purchase of an investment property?
The well-known business proverb claims, “Revenue is vanity, profit is sanity, and cash is reality”. This has put financial management at the core of investment businesses. Understanding the intricacies of your investment finances is critical for keeping track of how your cash flows.
Cash Flow
Business blockers are inevitable in any investment transaction. As an investor, you have to keep an eye on the ins and outs of your financial activities, as this could be a determining factor in the success of your business. Definitely, investors consider managing the cash flow as the top priority when purchasing a property, for this is an indicator of whether the company or an individual investor is gaining or losing money. Hence, understanding how much profit you gain after all the operational costs and expenses is a vital aspect of optimizing your valued investments.
Location
Location still claims to be one of the elements of profitability in purchasing an investment property. Site accessibility featuring the best deals on amenities suits the taste of every investor. Taking into account how the investment property market evolves over time is a win. Without a doubt, choosing the best location is one of the most important factors for investors to consider.
Cost And Potential Appreciation
Investors tend to look at a wider scope of possibilities when doing investment business. Added to the list of top considerations is the cost of the property to be purchased. As money acts as an essential vehicle for any business transaction, it should be wise for the investor to say how much money will suffice for the whole investment duration. Taking into account the carrying costs of the property, such as mortgages, taxes, and insurance, is part of the investment venture. On the other hand, paying attention to the opportunity cost, or the potential return on your investment, can help you determine whether you got a good deal on your property purchase. Thus, undermining the cost factor in doing investment business is a prime thought.
Getting a head start on these key factors before investing in your dream home allows you to better manage your investment portfolio. A thorough analysis of the cash flow, location, cost, and potential appreciation of every investment purchase saves a savvy investor from the hedge of inflation while sustaining his financial portfolio.
