Commercial real estate investors in California and across the U.S. are starting to rely more heavily on private lenders as large banks tighten their lending standards. Banks have been less willing to lend money for commercial real estate deals due to increased scrutiny from banking regulators. Since 2015, the Office of the Comptroller of the Currency and the Federal Reserve have been warning banks about a potential bubble in real estate.
Fine of $14 billion levied against Deutsche Bank
California real estate developers might want to be aware of the fine that has been levied against Deutsche Bank by the U.S. Department of Justice. The Justice Department announced that it is fining the bank $14 billion for its actions in offering residential mortgage-backed securities prior to the housing bubble burst of 2008.
Using online lenders in commercial real estate investments
People interested in commercial real estate debt investment in California might be considering working with an online marketplace lender. These platforms offer increasingly attractive opportunities, including the possibility of high returns, and have opened up opportunities to a new wave of potential investors. However, there are a number of questions investors should ask as well.
Using hard money loans in commercial property investments
Many California investors use hard money loans when they purchase commercial real estate properties. While there are other options on the market that provide financing for real estate investments, this method has both benefits and drawbacks.
Real estate stocks get their own category in stock market
California brokers and investors might not realize that real estate firms have been mixed together with insurance and bank companies in the stock market for 17 years. As of Sept. 1, however, they have their own category.
