In Brief : Spring 2019
In Print
In Brief : Spring 2019
December 11, 2019 2:18 PM
by
Vincent Valvo

IN BRIEF

SHARESTATES WINS TOP REAL ESTATE PLATFORM AWARD AT LENDITFINTECH USA 2019

Sharestates, a marketplace lending platform that connects real estate developers with investors, was crowned Top Real Estate Platform at LendIt Fintech USA 2019 in San Francisco. The Top Real Estate Platform award is based on performance, volume, growth, product diversity, and responsiveness to stakeholders.

“Sharestates has shown impressive growth over the past year while also providing great returns for investors. They deserve the LendIt Fintech Real Estate Platform of the Year for 2019,” said Peter Renton,Co-Founder & Co-Chairman, LendIt Fintech.

“To think only five years ago we walked into LendIt not knowing what to expect as part of an industry that was beginning to find its way into the financial marketplace as Private Lenders, and today we are acknowledged by our peers as a leader in the space,” explains Co-Founder and CEO, Allen Shayanfekr. “It’s humbling, and we look forward to continued success through strategic partnerships as well as being part of a monumental financial movement. On behalf of our organization, I’d like to thank LendIt Fintech for such an honorable award. We are very excited about the coming year, and our product rollouts. The community spoke, we listened, and we’re ready to execute!”

As Sharestates continues to grow they’ve expanded their offerings to meet the needs of the evolving practices of their professional community. Now operating in 46 states, Sharestates offers diversified asset classes including residential, multi-family, mixed-use, commercial properties,and land acquisitions. Loan types include short-term, long-term, and non-performing loans across different stages of development from ground-up construction to stabilized properties. Sharestates focuses on debt offerings,but also offers equity investments through the Syndicate Profile platform, and every project is carefully underwritten with a proprietary 34-point risk assessment scoring matrix.

Since launching in 2015, Sharestates has closed on over $1.7 billion in total loan volume and returned over $675 million in principal to investors. Average annualized returns have exceeded 10% every year. As a result of its strong performance and valued relationships, 82% of Sharestates loan volume has come from repeat borrowers and 81% of its investors are repeat investors.

MOST HOMEOWNERS WILL INVEST IN THEIR NEST THIS YEAR

Americans Prioritizing Personal Style When It Comes To Home Renovations

Nearly three in four (73%) homeowners surveyed plan to make home improvements this year, a 26% increase from 2018, according to the sixth annual LightStream Home Improvement Survey conducted by The Harris Poll.

Homeowners also plan to spend more on those renovations – an average of about $9,000, the highest amount since the survey began in 2014. In addition, more homeowners this year will take on projects with major price tags. Those planning to spend $25,000 or more on improving their homes grew by 83% compared to last year.

In terms of what’s driving these renovations, Americans are more focused on creating a space they love than increasing the value of their home as an asset. Personalization is the number one motivator for investing in a home renovation (27%), ahead of increasing home value (14%); improving a home for sale (7%); or preparing for a major life event (4%) such as a new baby or retirement.

“The majority of homeowners are planning on staying in their homes for at least 10 years—or never move,” said Todd Nelson, senior vice president of strategic partnerships at LightStream. “Regardless of their age,we found that most consumers are focusing their home improvement projects to reflect their personal lifestyle, comfort and interests.”

As Americans prepare to tackle home improvement projects,lack of education and preparedness can often lead to unnecessary stress.

 

CAL RENTERS QUALIFY TO BUY, BUT CONFUSED

While low affordability is the biggest obstacle most renters face in becoming homeowners, 14 percent of California renters can afford to purchase a home but are foregoing homeownership partly because they don’t have the financial knowledge to do so, according to researchfindings by the California Association of Realtors.

Of the nearly six million California renters statewide,826,000 could qualify to purchase a median-priced home in the county in which they reside. Five in 10 who qualify to purchase a home are white (51.4 percent), 12 percent are Asian, more than one in four is Hispanic (26.9 percent), and 6 percent are black.

A lack of financial literacy is one of the biggest barriers preventing renters from becoming homeowners. Nearly three-fourths (73 percent)believe a down payment of at least 20 percent is required to purchase a home,and 72 percent are unaware of loan programs that require less than 20 percent down payment. Additionally, nearly seven in 10 (69 percent) would purchase a home if they could put down a lower down payment.

“While many renters earn the income and have the credit required to buy a home, they have misconceptions about what it takes to become a homeowner, which is holding them back from buying a home or causing them to give up on their American dream,” said CAR President Jared Martin. “Prospective first-time buyers should be aware that there are many down payment assistance programs offered by local housing agencies and low down payment programs from the Federal Housing Administration, U.S. Dept. of Agriculture and the Veterans Administration.”

U.S. ECONOMY STILL ON SLOWING TRACK

National economic growth for 2019 continues to be forecast at 2.2 percent, down from 3.0 percent in 2018, according to Fannie Mae. The fading impact of last year’s fiscal stimulus as well as slowing business investment and consumer spending were again identified as the primary drivers behind the expected sluggishness in GDP growth, but residential fixed investment is projected to rebound.

The second half of the year is expected to feature stronger economic growth as the real effects from the partial government shutdown and the fourth quarter stock market volatility wane amid dovish Federal Reserve policy.

Fannie Mae continues to project home sales in 2019 to hold steady at 2018 levels, supported by improved wage growth, slowing home price appreciation, and lower mortgage rates. Purchase mortgage origination volume is projected to rise moderately amid flat home sales and slower home price appreciation.

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