New Commercial Real Estate Loan Standards

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The upcoming year is around the corner and is expected to bring crucial changes to the real estate industry. Therefore, you have all the more reason to be careful about which real estate investment lender you are going to choose. Luckily for you, there is a reliable and trustworthy lender you can put your trust in; BridgeWell Capital, which is composed of in-house private money lenders who can help you fund your real estate project. For more information, you can click here. But before you get to know BridgeWell Capital better, here are some things you need to know about new commercial real estate loan standards.

New Commercial Real Estate Loan Standards

1. Deepening Tax Comprehension

Since the focus on expense mitigation remains unchanged, many real estate tax lenders continue exploring ways that can help them reassess tax obligations so they can support stronger bottom lines. The right tax strategy can play a crucial role in supporting stronger financials, particularly among those who prioritize the use of incentives and credits. A few initiatives that may impact many real estate companies, particularly in sustainability efforts, include:

  • Reduction Act in the US

  • Clean energy tax credits as well as incentives from an inflation

2. Sustainability-Related Regulations

Since these types of regulations keep continuously evolving, firms will likely be required to include detailed environmental, governance, and social metrics in corporate disclosures alongside similar transparency levels as financial reporting.

3. The Technical Side and Boosting Efficiencies in Technologies and Operations

Many firms are expected to outsource specific operational capabilities for the upcoming year. The primary goals are to gain technological capabilities and streamline processes, adding resilience and agility to the operations, as well as access integrated offerings across the business lines. Others will also be putting more focus on transformation, adding resilience and capabilities through outsourcing, while investing in new hires all across the differentiated skill sets.

According to one survey, the majority of real estate firms continue to depend on established but aging legacy technologies which typically serve a singular purpose. The interesting thing is that almost half of them plan to opt for more modernization. However, as estimates suggest, technical debt costs associated with maintaining and running legacy technology are as high as sixty percent of each dollar spent on IT.

Additionally, addressing data silos along with a corresponding degraded data flow speed will likely be another major aspect many companies will have to be focusing on in 2024. As firms are doing their best to protect themselves against financial instability, any sort of additional lag created by the core data inefficiencies may cause setbacks.

However, too much data won’t be all that helpful either, so it is important to carefully select the appropriate data tools that can improve efficiency while challenging the status quo. And that is exactly where technologies such as digital twins and AI can play a crucial role.

Final Thoughts

As you can see, 2024 will be a challenging year for the real estate industry as it will be bringing new standards and regulations along with it. One’s success will depend on how well they’ll be able to navigate through all the novelty and challenges accompanying it.

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