Duckfund for Real Estate Investors

CRE investors, stop making this mistake 👇 Don’t freeze your capital on earnest money deposits. Think about it: why tie up your funds, limiting your flexibility, when you can keep your capital available for the due diligence period, jumping on new investment opportunities, and addressing unexpected costs? Instead, opt for soft deposit financing that provides: ✔️ Quick, safe, and easy access to capital ✔️ Simultaneous funding for multiple deals ✔️ Low fees and interest rates Find out how it works below and head to our website https://lnkd.in/esEX_W4m  for more information or schedule a call with us: https://lnkd.in/ejiQF4yV #CREFinancing #CREInvestor #CRE #CREInvestment #CREFunding #EarnestMoney #SoftDeposit #CommercialRealEstate

Getting CRE and C&I lending confused is more common than you think. But while CRE lending focuses on the purchase and development of commercial properties, C&I relates to the operations that take place within them. So, why the confusion? Well, it’s not always as black and white as it seems since sometimes they are connected. If you are looking to invest in a business, you might need both CRE and C&I loans simultaneously, as you need the first one for purchasing or developing the new property and the latter for buying equipment or inventory. At other times, the collateral used for C&I loans is located within a property that could be the subject of a CRE loan, creating an overlap in assets that can lead to confusion. When you are looking for financing for a CRE investment, it’s essential to know the distinction between these two to avoid mistakenly applying for one when you need the other. If you need more guidance on getting the right loan, check out this article: https://lnkd.in/exn8NqGM #CREFinancing #CREInvestor #CRE #CREInvestment #CREFunding #CRELending #CommercialRealEstate

If you excel at identifying good investments and marketing them but don’t have the cash to buy them yourself, wholesaling can be a good way to make money in the real estate market. Have you ever thought about it? Here are 4 tips to help you succeed: 1️⃣ Secure your buyer early: Always have a buyer lined up before signing the contract or using transactional funding, especially when you’re relying on transactional funding. 2️⃣ Do the math carefully: If the cost of transactional funding eats into your profits, the deal might not be worth it. 3️⃣ Give distressed properties a try: The success of wholesaling largely lies in the margin between what the seller wants and what the buyer is willing to pay, and distressed properties often provide the best opportunities for these margins. 4️⃣ Leverage earnest money financing: Some sellers might require you to put down earnest money before continuing negotiations. Yes, even if they know you plan to reassign the contract, they might still ask for it. With solutions like Duckfund, though, you don’t need to have a lot of cash on hand to operate as a wholesaler. In just two minutes, you can apply, get approved within 24 hours, and have your earnest money funded in 48 hours. Visit our website https://lnkd.in/esEX_W4m  or schedule a call with us: https://lnkd.in/ejiQF4yV  for more information. #CREFinancing #CREInvestor #CRE #CREInvestment #CREFunding #EarnestMoney #SoftDeposit #CommercialRealEstate #Wholesaling #Wholesaler

Another week in commercial real estate, another wave of updates. This time, we took a look at how loans are performing, and this is what we found (spoiler alert: yes, you’ll read the word “distress” a couple of times): 👉 CMBS distress rates keep increasing year-over-year, up 350 basis points, with an overall rate of 8.30% in July 2024. The office sector leads the way with a rate of 11.25%, followed by retail (10.89%), mixed-use (8.93%), multifamily (5.11%), and industrial (0.40%). However: - Compared to June, industrial, multifamily, and mixed-use actually saw a decrease. - New transfers into special servicing amounted to less than $1.9 billion. - Type 2 CMBS loans (Single-Asset/Single-Borrower) performed better than Type 1 (Conduit). 👉 CRE CLOs have reached a distress rate of 10.8%, with multifamily loans at risk amounting to almost $81 billion and office loans at $67 billion. But it’s not all gloomy news. Despite strict standards, lenders are still willing to finance the right deal, with a preference for well-performing assets with solid occupancy rates in strong-performing regions such as certain suburban markets. Taking all of this into consideration, as an investor, what does this mean for you? ✔️ Focus on stable assets with strong cash flows (for example, industrial properties such as warehouses and self-storage units). ✔️ Prepare for rigorous underwriting proposals, providing detailed reports and addressing potential risks. ✔️ Banks are still an option, but explore alternative lenders who are currently leading loan originations. Do you have anything to add? Let us know in the comments. #CREFinancing #CREInvestor #CRE #CREInvestment #CRELending #CRELoans #CREMarket #CREInsights #CommercialRealEstate

For developers seeking to grow their investments, earnest money deposits can be a key differentiator. They increase your chances of securing a property, strengthen your negotiating position, give you a competitive edge, and speed up the closing process. However, they come with their own set of challenges: First, allocating funds for earnest money can be tough, especially when capital is needed for other fundamental processes such as construction. Second, when placed in escrow, this portion of your capital becomes temporarily unavailable. This means you might miss out on other revenue-generating opportunities or need to manage working capital more tightly. Also, though refundable, earnest money can be forfeited if certain conditions aren’t met in the purchase agreement, which could impact your future financing prospects as lenders may view it as a red flag. So, what can you do about it? Here are three strategies to overcome these challenges: 1️⃣ Plan and budget: Set aside some of your available capital specifically for earnest money, considering your timelines and cash flow. 2️⃣ Negotiate lower deposit amounts: By demonstrating a track record of successful investments and providing alternative security, such as standby letters of credit. 3️⃣ Opt for earnest money financing: Partner with specialized financiers for soft deposits, like Duckfund. We provide the funds you need to secure a property within 48 hours, offering flexibility, high approval rates, and no collateral or credit checks required. Apply today https://lnkd.in/egY-U_RJ or schedule a call for more information: https://lnkd.in/ejiQF4yV #CREFinancing #CREIDeveloper #CRE #CREDevelopment #CRELending #CREMarket #CommercialRealEstate #EarnestMoney

You know what they say, the devil is in the details—especially when it comes to contracts and agreements. If you choose to raise money for a real estate investment through joint ventures, clarity will be your best friend. One of the benefits joint ventures offer is flexibility in the participants' roles and contributions. However, this very flexibility can lead to ambiguity without clear documentation, and overlooked details can cause big problems in the long run. The solution? Be explicit. A well-drafted agreement that provides a solid framework will help prevent misunderstandings and disputes. It guarantees that each partner's expectations are aligned and their legal rights protected, ultimately leading to a more effective collaboration and, therefore, a more successful venture. Make sure that the joint venture agreement clearly defines the rights and responsibilities of each partner, and don’t underestimate the advantage of engaging a legal adviser in the process to create a comprehensive and legally sound document. Want more tips on how to raise capital for your next CRE investment? Check out this blog post: https://lnkd.in/eGhBp5Ka #CRETips #CREFinancing #CREIFunding #CRE #CREMarket #CommercialRealEstate #JointVenture

Have you heard of LLC-based financing for real estate investments? Acquiring properties through an LLC is nothing new. However, tough lending conditions have led a new segment of the property financing market to adopt this methodology for competitive CRE transactions. At Duckfund, we use LLC-based financing for several reasons: - Unlike with traditional lending, this method eliminates the need for personal credit checks and collateral since the LLC serves as a separate legal entity in the transaction, reducing personal liability and the paperwork involved. - It doesn’t require any of the buyer’s capital, making it a useful way to buy commercial property without making a down payment. - Funds can be ready within 48 hours after approval and signing a call option agreement. The LLC-driven lender (in this case, us) manages the escrow deposit and purchase agreement, giving you the option to either proceed with or walk away from the deal. This allows us to focus on speed, transparency, and efficiency as we use the LLC to wire the down payment into an escrow account, without you having to dip into your capital. Quick and inexpensive, it’s an extremely effective way of securing property. Ready to try it? Apply today https://lnkd.in/egY-U_RJ or schedule a call for more information: https://lnkd.in/ejiQF4yV #CREFinancing #CREInvestor #CRE #CREInvestment #CRELending #CREMarket #CREInsights #CommercialRealEstate #EarnestMoney

What happens to your earnest money if a seller breaches the contract? Have you ever wondered this? When a seller breaches a contract, earnest money is generally refunded to buyers, minimizing financial loss. However, understanding the specifics and potential implications can help you deal with the situation better if you ever find yourself in it. First, let's list some typical breaches: - Failure to provide clear title: The seller doesn’t deliver a title free of encumbrances as required. - Refusal to transfer property: The seller doesn’t transfer ownership as agreed. - Property discrepancies: The property is not as described, with issues like undisclosed damage or deed problems. - Failure to disclose material facts: The seller doesn’t reveal crucial information affecting the property or transaction. Having that clear, what happens next? According to Chad Johnson, founding partner at Hellmuth & Johnson, “Statutory cancellation may be commenced by the buyer in response to the seller’s breach of the purchase agreement, which requires the buyer to serve a legal notice on the seller… If the seller fails or refuses to cure the default within the fifteen or thirty-day time period required by the notice, the purchase agreement is canceled, and the buyer will generally be entitled to a refund of the earnest money.” So yes, getting your earnest money refunded is possible, but it might vary from case to case. Learn more about it here: https://lnkd.in/eZcSQrUU #CREFinancing #CREInvestor #CRE #CREInvestment #CRELending #CREMarket #CREInsights #CommercialRealEstate #EarnestMoney

Positive signs in commercial real estate? In Q2, the market experienced two significant developments that we need to talk about: - According to the CBRE U.S. Capital Markets & Lending report, commercial real estate investment volume rose by 14% compared to the previous quarter. - A Federal Reserve survey revealed that, breaking a two-year trend, U.S. banks saw consistent demand for commercial and industrial loans. Why is this so important? Even though the $85.7B total investment volume in Q2 2024 is still 3% down YOY, it’s a welcome change from the 15% decline in the previous quarter. Admittedly, there's more to it. The shift was not even across all sectors. Only multifamily experienced an increase in investment volume, while the industrial, office, and retail sectors saw declines in contrast. This could indicate that investors are currently favoring the multifamily sector due to its resilience and strong fundamentals, but overall, these two developments combined signal a more optimistic outlook for commercial real estate. The rise in investment volume indicates a potential rebound in market activity, while stable loan demand suggests that confidence is returning to the market, possibly due to a potential rate cut, opening up opportunities for strategic acquisitions and development projects. The CBRE report also unveiled interesting insights into the types of investors and lenders, showing that private investors accounted for a larger share of the investment volume compared to institutional investors, while alternative lenders emerged as the leading group in loan origination. The dominance of alternative lenders demonstrates a shift in the lending landscape, as traditional lenders face tighter regulations and stricter credit conditions. This means that investors and developers can benefit from diversifying their financing sources and exploring innovative solutions like soft deposit financing, which can provide the necessary liquidity to capitalize on emerging opportunities without over-leveraging. What are your thoughts on this? Do you consider these to be positive signs or do you remain skeptical? #CREFinancing #CREInvestor #CRE #CREInvestment #CRELending #CRELoans #CREMarket #CREInsights #CommercialRealEstate

Halfway through 2024, Texas, Florida, and Arizona seem to be top markets to invest in commercial real estate despite broad industry challenges. Tax incentives and significant growth opportunities have driven corporate relocations in Texas and Florida, while cities in Arizona lead the economic growth ranking in the US. Pretty good, right? Now tell us, in which of these states would you invest? React with “love” for Texas, “celebrate” to choose Florida, and “like” to vote for Arizona. Or if your answer is “none,” let us know in the comments which state you are setting your sights on. #CRE #CREInvestment #CREMarket #Arizona #Texas #Florida #CommercialProperty #CommercialRealEstate