The banks are collapsing, can I still get a loan?

Top 5 things for real estate investors to know about the Silicon Valley Bank collapse

Silicon Valley Bank and its collapse might sound like it has nothing to do with the real estate investor, but boy does it! And don’t even get us started on Signature Bank. We provide our Top 5 tips about how you, the real estate investor, should brave this market- starting with the following: make sure you still have access to real estate loans, so reach out to us at Diggifi (book a meeting with one of our loan-advisors here). As background, we also DIG into a brief analysis below on what’s happening under the surface.

Top 5 Tips:

• Don’t bet on your bank – More accurately, don’t bet the ranch (or your other real estate investments) on your bank – they’re not telling you, but their regulators are all of a sudden pressuring them to hit the brakes
• Find new lenders – Whoever you thought was your rock, your foundational relationship lender is now likely being told by their regulator to slow the heck down (even if they are telling you it’s all going to be ok)
• Get educated about the world of private lenders – these unregulated lenders are going to step into the breach and pick up the slack. To help get you started, here’s a short piece on private lenders and why they can be thought of as the “Ferrari” of the lending world.?
• Don’t panic! – Yes, the world may feel a little like it’s experiencing a California-style earthquake (and it is!) but one person’s crisis is another’s opportunity…so get out there and find opportunities (hint hint…deals)!
• Get smart on loan terms – Get yourself a “master-class”, fast, on lending terms and how to structure your property financing so that you win, even amidst the turmoil. Let us know if you’re interested by emailing us here.?

Finally, keep your eyes out for bargains – This is always good advice, but keep in mind – as banks and other lenders pull back credit, properties are going to be forced to come up for sale

We at Diggifi are here to help you get the best financing you can get, so that you win! Diggifi is a lending platform that focuses on financing the long-tail real estate investor, nationally, in everything from long-term multifamily to short-term rentals (aka “AirBnBs”). Just email us here.?

Why? Well, here’s the nutshell version: Regulators are breathing down the necks of all regulated lenders.? All of them are now poring over the books and investments of all of their regulated banks, credit unions, life insurance lenders, and others and saying one or two things in common – “FREEZE” or, at least “SLOW DOWN” your lending! This impacts every local, regional and national lender – even if you’re not seeing it yet, we assure you – it’s happening. And, it is likely to impact lenders for weeks and months to come.

SVB has been the banker of choice to many tech companies, funds and….wineries (huh?).? These companies are often tied to real estate investing. Signature Bank was a major lender to the real estate world, both in the Tristate area surrounding NY and beyond. Among other things, Signature had begun extending its wings nationally, including in…California. First Republic Bank, another California lender that is within investors’ gun-[hairs] is also staring down the gun-barrel – and has been an active real estate lender both in the West AND the Northeast.? And there are other banks we are sure they’re examining that we haven’t heard about…yet…