How the best deals in Real Estate are Commercial Mortgage Bridge Loans
With years of strong returns despite market fluctuations, you may wonder how Commercial Mortgage Bridge Loan mortgage notes are able to achieve such fantastic yields. The answer is simple: we capitalize on our network of experts across the country.
In many real estate purchases, parties look solely at appraised values. Commercial Mortgage Bridge Loans create an additional layer of information in the form of BPOs.
A Broker Price Opinion, or BPO, is a broker’s informed view on what the property would sell for in the current market. This takes into account the market momentum, demand, and the value of homes in the given area. A BPO is a separate type of evaluation that still takes into account not just the combined average price of homes sold in the area, as is the case with appraisals, but ties in what the home would likely sell for in the current market. This is a subtle, but distinct difference.
The expert team of brokers each have a dedicated market focus, which means they have intimate knowledge of real estate sales in a given area. Furthermore, the focus on current value allows capitalization on short-term products that give flexibility AND strong returns.
Take for instance a home in a rapidly expanding community. There are four homes on the street. Three of the homes have been sold in the last six months for roughly the same price per square foot, leaving one home. The scarcity of this option drives the value of the opportunity in the fourth home. A BPO accounts for this activity. And, of course, there are the weeks it takes to finalize an appraisal, during which time another interested party make close the deal. A BPO, in comparison, can be done in just a few days.