The Importance of Conservative ARV When investors analyze a deal, ARV (After Repair Value) drives most of the projections. The mistake many investors make is being overly optimistic. Common issues include: - Using the highest comp instead of the average - Ignoring differences in property condition - Underestimating market shifts 🎯 Takeaway:Conservative ARV estimates protect your margins and reduce risk.

🏠 Treasury Yield Updates 5-Yr UST Yield: 3.725% -> 3.727% 10-Yr UST Yield: 4.152% -> 4.136% Why is this important? - Typically for every 20 basis point swing, rates will move 1/8th in the corresponding direction. In the last week rates have held steady with no real movement in any direction. 📈 Industry Headline • Home Contract Cancellations: Buyers showed incredible resolve as cancellations continue to edge downward. It’s important to find markets where deals are likely to close. 📘 What You Should Know (Opinion) Financing Strategy Matters More Than Ever Investors are getting creative with financing, including: - Bridge loans - DSCR loans - Seller concessions The structure of the deal can make a huge difference in profitability.

🏠 Treasury Yield Updates 5-Yr UST Yield: 3.648% -> 3.725% 10-Yr UST Yield: 4.069% -> 4.152% Why is this important? - Typically for every 20 basis point swing, rates will move 1/8th in the corresponding direction. In the last week rates have held steady with no real movement in any direction. 📈 Industry Headline • https://www.realtor.com/news/trends/millennial-homebuyers-midwest-affordable/: Millennial homebuyers are finding success in the Midwest! Particularly, Dubuque, IA, Monroe, MI, Wausau, WI. 📘 What You Should Know (Opinion) Owner-occupant buyers tend to pause when rates rise. Professional investors, however, often lean in because: - Competition decreases - Negotiation power increases - Better entry prices appear Different buyers react differently to the same market.

🏠 Treasury Yield Updates 5-Yr UST Yield: 3.615% -> 3.648% 10-Yr UST Yield: 4.046% -> 4.069% Why is this important? - Typically for every 20 basis point swing, rates will move 1/8th in the corresponding direction. In the last week rates have held steady with no real movement in any direction. 📈 Industry Headline • Loan Requests Jump : Loan demand has increased for the third straight week due to a decrease in interest rates. New home loans and refinances have contributed to this count. 📘 What You Should Know (Opinion) Private credit isn’t just “niche” anymore… It has become a true part of investor strategy. In terms of real estate financing, it facilitates the access to bridge, and DSCR loans.

Why Exit Strategy Matters More Than Rate (Bridge Loans) Most borrowers focus on interest rates, whereas the lenders are focused on the exit. In renovation and ground up financing, loans are short-term. That means the most important question isn't, "What's the rate" Its: "How are you paying this off?" 🧠 The Reality Private loans are typically repaid through one of these channels 1. Sale of the property 2. Refinance into 30 Year DSCR 📊 Why Lenders Care So Much Lenders evaluate: 1. Realistic renovation timelines 2. Market rent assumptions 3. Current refinance environment 4. Liquidity Reserves A strong exit strategy will lower risk for the lender and borrower 🎯 The Takeaway In private lending: Rate affects profitability in the long-term Exit strategy determines success in the short-term 💬 What’s your preferred exit, sell or refi?