Understanding The Fundamentals Of Real Estate Investment Funding

For the real estate investor, one of the main challenges is securing the financing of a new venture. Rarely would a first-time investor have sufficient capital on hand to acquire property and, thus, must rely on a broad range of funding options.

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Typically, though, many first-time investors would fund real estate acquisitions for investments through more conventional loans, often through the same home mortgage that they used to acquire their own homes. This is especially advantageous to investors of real property, who can use the income generated from tenants to pay off loans faster than expected.

Besides mortgages, however, investors can instead seek out a variety of alternative loan options. Some investors can have a fortuitous moment and receive a private loan from a trusted friend or family member or secure a hard money investment from a private businessperson and forge terms favorable loan options. Others, meanwhile, may be able to tap into nonconventional options such as real estate trusts and whole life insurance policy loans.

However, one of the most reliable loan option available to landlords is investment property loan, which often provides the same advantages to mortgages while offering additional benefits to more experienced landlords. Unlike regular mortgages, investment property loans count rental income when estimating the borrower’s debt-to-income ratio, which can help established landlords secure more funding and expand their portfolio of properties.

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Tapping into the funding needed for real estate investment can be a challenge for the new investor. Steve Liefschultz and Equity Bank provide assistance through an assortment of investment lines of credit and real estate loans for investors and entrepreneurs throughout Minneapolis and Minnetonka. Visit this page for more updates.

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Minneapolis and Commerce: Reasons for doing Business in the Twin Cities

There are many good things that a person can say about Minneapolis, Minnesota. One of them is being one of the easiest places to do business. The entrepreneurial community in the city is strong and diverse. The variety is built on the premise that there are numerous companies in the area—be it large or small, startup or seasoned, and traditional or innovative.

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Many industries thrive the area, including finance, merchandising, and education. Minneapolis supports innovation and new ideas; that is why it has become a melting pot for many breakthroughs and business feats. Harvard Business Review even ranked Minnesota as the second most conducive state for innovators.

The workforce in Minneapolis is also top notch because the majority are well educated and experienced. In a population of about half a million, the labor force numbers to more than 300,000. In fact, Minneapolis is at the top of the list of “smartest people” and “America’s most literate cities.”

The Twin Cities also has numerous colleges and universities where businesses can their new employees (and future leaders) from. It is also home to senior business pundits—from patent attorneys to classy designers—that companies need for their ventures to succeed. Finally, it is also one of the first cities to provide its residents, businesses, and visitors access to a wireless connection anywhere in the district so that people can stay connected all the time. Reports show that Minneapolis has the second fastest broadband speed in the country.

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For more about business opportunities in Minneapolis, subscribe to this blog for Steve Liefschultz, Equity Bank CEO.

Small Business Assistance In Minneapolis

Starting and maintaining a business can prove to be a difficult endeavor, especially for first-time business owners. To be of assistance, local governments have laid down measures of support for local businesses to grow and develop. In the city of Minneapolis, several business assistance services are offered for individuals planning to start a new business or for owners looking to expand an existing business.

Image source: weebly.com

Image source: weebly.com

Aside from providing an array of financing programs and business loan options for Minneapolis business owners, the city also offers numerous business assistance services through the Business Technical Assistance Program (B-TAP) and a number of nonprofit organizations offering free business consultation services and events.

The B-TAP was created to provide consulting support to local Minneapolis businesses. The city works hand in hand with non-profit organizations in offering entrepreneur training to provide sound business counsel and training for new and existing business owners. B-TAP also helps owners pursue certification as minority-owned disadvantaged businesses.

In addition to B-TAP, potential business owners in Minneapolis can also seek business advice from local non-profit organizations. SCORE is one organization that provides entrepreneur training, workshops, and resources to help small startups grow and succeed. The nationwide nonprofit association has over 10,000 volunteers dedicated to entrepreneur training. The Twin Cities Small Business Development Center at St. Thomas University also offers expert entrepreneurial advice for small businesses. The center helps startups develop strategies to improve profitability.

Image source: collegefocus.com

Image source: collegefocus.com

Cities should support local businesses to create employment opportunities and to develop local economic growth. The city of Minneapolis offers business assistance that turns small businesses into a success.

Equity Bank specializes in investment lines of credit and real estate loans. To know more about how the company can help your business’ investing and loan needs, visit its official website.

Minneapolis Housing Market Continues Upswing

The past year has been massive for the Minneapolis housing market, having achieved growth levels it has not seen in the past seven years. This is good news for the real estate industry as a whole, especially that it can now confirm the end of the housing bubble that has plagued the country for years. Experts predict that the upswing will definitely continue in the next several months or even to a full year.

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Image source: minneapolis.org

Minneapolis is currently one of the strongest metro cities in terms of economic performance, which easily translates to great opportunities for the real estate sector to make a rebound. Almost every market indicator for the city has improved dramatically since the recession. In fact, Minneapolis is currently one of the top major cities for job creation, with a very low unemployment rate of just 3.6 percent. This means the majority of the residents have high purchasing power, which allows them to afford big purchases as major as real properties.

At this point, the only thing holding back (but is actually a good indicator) the further upturn of the Minneapolis housing market is the relative paucity of properties that can be sold on a commercial level. Current demand is so high that it puts property owners and developers in both awkward and rewarding situation. With top universities, green businesses, excellent public health facilities, low unemployment rate, and a generally agreeable community culture, Minneapolis has been a hot spot for new homebuyers. Experts anticipate that median home sale prices will rise to at least 6 percent this year while interest rates will only increase slightly to more or less four percent. The Minneapolis housing market has been in its healthiest state in about ten years.

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Image source: goodhousekeeping.com

Steve Liefschultz is the chairman of the board of the Remada Company, a real estate development and management company in Minnesota. Know more about his professional background here.

Minnesota Tops AARP List of Best States to Retire In

AARP, a nonprofit, nonpartisan organization that advocates for the elderly, has ranked Minnesota first in its list of the best states to live or retire in.

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AARP’s annual long-term services and supports (LTSS) scorecard aims to measure the performance of LTSS in five categories: affordability and access, choice of setting and provider, quality of life and quality of care, support for family caregivers, and effective transitions.

Minnesota was the only state to have scored in the top quartile for all five categories. It also ranked first in two categories: quality of life and care and choice of setting and provider.

Minnesota’s suitability as a retirement location has not gone unnoticed. The state is predicted to experience a sizable shift in demographics from 2020 to 2030. According to the Minnesota Metropolitan Council, in that 10-year period, for every one person of “working age” added to the Twin Cities’ population, there will be 21 people added to the retired group.

Although retirees have traditionally flocked to warmer states like Florida, Minnesota’s friendly citizens, beautiful scenery, and year-round outdoor and cultural activities, as well as the availability of senior services, have made Minnesota a popular retirement destination in recent years. It is also a favorite among investors and private developers eager to address the need for housing before the demand truly sets in.

Image source: states.aarp.org

Headed by Steve Liefschultz, Equity Bank is a locally-owned and managed financial firm that addresses the needs of real estate, agricultural, and business clients in the Minnetonka and Claremont areas. For more local real estate news and updates, follow this Twitter account.

Minnesota’s Biggest Banks End 2015 With Solid Revenue

U.S. Bancorp and Wells Fargo, two of Minnesota’s largest banking and financial services companies, finished the year strong with solid revenues. U.S. Bancorp, the fifth-largest bank in the country, reported a full-year profit increase of 2.5 percent, earning $5.21 billion in revenue; while Wells Fargo, the state’s largest bank and the world’s largest bank based on market value, earned a total of $21.6 billion in revenue.

Image source:  tcbmag.com

While both companies attributed their success to growth in loans, deposits, and income, there was a slight difference in the way they achieved profits. Wells Fargo, which surpassed Citygroup Inc. as the country’s third biggest banking company according to assets, focused on asset acquisition. U.S. Bancorp, meanwhile, extended its competitive advantage by reaching positive operating leverage, an indication of the firm’s efficiency in growing its revenue faster than its expenses.

In the wake of the industry’s low-interest rates, modest economic growth and regulations, U.S. Bancorp chief executive Richard Davis noted that the company’s overall performance is remarkable. He also expressed optimism for 2016 saying, “I’m concerned less about the rate itself than the fact that rates moving up will continue to reflect that the Fed believes the economy is stronger.”

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Steve Liefschultz is a banking and real estate expert based in Minnesota. Visit this blog for news about banking and finance.

Speeding Ahead: The Appeal of Minneapolis’ Bike-friendly Status to Homebuyers

History has shown how various factors and events affect the performance of the real estate market. For instance, the 2008 financial crisis saw many homeowners missing defaulting on their mortgage payments and their dream homes seized. Meanwhile, the entry of millennials in the workforce set off the increase in demand for rental properties, as this new generation favors renting than buying homes.

And lately, the growing importance of environmental protection has spilled over to real estate as an increasing number of homebuyers are opting for energy-efficient homes and sustainable communities. Thus, it comes as no surprise that Minneapolis is one of the cities that is attracting eco-conscious homebuyers. The City of Lakes is especially popular among property buyers who would like to bike their way to work to save on gas use and at the same time help conserve the environment.

minneapolisImage source: denisoneverywhere.com

Minneapolis is the perfect home for these “bike-happy” buyers as the city was named the most bikeable city in the U.S., according to a recent survey by residential real estate firm Redfin. The city’s growing network of bike lanes features more than 188 miles of on-street bikeways and 92 miles of off-street trails. It also has a very widely used bike sharing system, Nice Ride Minnesota, which has more than 1,550 bicycles for rent at 170 kiosks in and around the metropolis and its neighboring city of St. Paul. And aside from the Redfin recognition, Minneapolis is also the only U.S. city included on the worldwide bike-friendly list of Danish Design firm, Copenhagenize Design Co.

With biking central to its identity, Minneapolis can look forward to a healthy housing market as homebuyers who are looking to save on gas and at the same time want to help preserve the environment choose homes in the city rather than in the suburbs.

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Minnesota-based executive Steve Liefschultz is a real estate and banking expert. For more news and updates about the Minneapolis real estate scene, follow this Twitter account.

Job growth improves rent strength in the Twin Cities

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Rent in the Twin Cities seems to be surging and overtaking the national average. Experts say that the high demand for apartments is due to the improvement of the economy and the good quality of life it offers to area workers.

According to this report by Apartment List, Minneapolis is the 18th most expensive major US city, with an average bedroom price 21 percent above the national average rate. This shows that renters are more than willing to pay a small premium to live closer to the city or within city boundaries.

With new job opportunities in the area, Twin Cities residents are now considering relocation to be closer to work and city life. Young urban professionals and empty nesters are renting out apartments near shopping districts, public transit, and other amenities.

Image Source: startribune.com

Despite current real market strengths, however, there is still growing concern that a bubble is looming.

A building boom might saturate the market with apartments. Too many vacancies could depress rental rates at the expense of property owners. But with so many new products entering the market, real estate professionals and apartment owners can only calculate their moves, wait for the right opportunity, and adapt to the changing bill of health of the market.

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Steve Liefschultz, CEO of Equity Bank, believes in the power of valuable investments. Learn more about real estate investing by following this Twitter account.

Twin Cities apartment market expected to remain strong

Image Source: realestateinasnap.com

Amid the rise of new apartment towers in Minneapolis come fears from observers that developers might have been overzealous with their projects. In January, the new builds have helped the city become one of only two cities in the country that saw the price of rent go down. According to real estate company Zillow, rent prices in Minneapolis fell to about $1,500 in January, which was 0.3 percent lower from the same period in 2014. Meanwhile, across the nation, rent prices increased a seasonally adjusted 3.3 percent.

Key players in Minneapolis real estate, meanwhile, have communicated that there is no cause for alarm. Investing in commercial real estate property in the city remains hot and the health of the apartment market in the Twin Cities is expected to keep for at least the rest of the year. Demand from baby boomers is expected to match the new builds and prop up the industry.

Image Source: startribune.com

Despite many announced or approved downtown Minneapolis large-scale apartment projects, real estate experts in the city are confident that the developers have not overbuilt. There is still a lot of capital that wants to enter the Minneapolis real estate market and the lack of properties up for sale is expected to drive prices up again.

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Steve Liefschultz is the chairman of the board of a real estate company in Minnesota. For more updates about the Minnesota real estate market, follow this Facebook page.

Minnesota: A favorable location for business owners

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The consensus is clear: Minnesota is one of the strongest and steadiest places for commerce in the United States.

In a business and career analysis by Forbes, the Midwestern state—hailed as the “Star of the North”—places 9th among the best places for business based on a robust economic climate and quality of life.

A home to 5.4 million people, the state’s Minneapolis-St. Paul metro area is considered a lucrative hub for multibillion-dollar companies such as Target, U.S. Bancorp, General Mills, 3M, and Medtronic. The state’s economy, which was once reliant on the production of raw materials, has now transformed into a diverse producer of finished products and services in various industries.

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Business opportunities in Minnesota, however, is not limited to its metropolitan areas. In Minnetonka, for example, numerous corporations from various industries continue to thrive. One notable company is the food processing giant, Cargill Inc., which today holds the distinction as the largest privately held corporation in the country in terms of revenue.

With the state’s economy shifting into high gear, rural counties are now also recovering from the last recession. News reports note that nine Minnesota counties—Clay, Jackson, Marshall, Pennington, Polk, Pope, Stevens, and Wilkin—are rapidly progressing in terms of economic output, median home prices, jobs, and unemployment rates.

With these economic activities, Minnesota is indeed a favorable option for investors. With a strong workforce and a healthy mix of companies, the state has emerged as one of the vigorous communities for businesses.

Steve Liefschultz of Equity Bank is a seasoned real estate investor and banker. Subscribe to this blog for more insights on business and investment.