Tag Archives: alternative investment tampa

A Guide to the Top Real Estate Terms
You might be ready to buy or sell your home, but how much do you know about real estate lingo? Before you venture into the world of home buying and selling, it might be a good time to familiarize yourself with the top phrases. Top Terms for Buyers Adjustable rate mortgage – a mortgage loan with an interest rate that adjusts over the life of the loan. The adjustment rate is usually determined by a market indicator, such as the weekly average of U.S. Treasury Bills, but is limited by how much and often it can be adjusted. Appraisal – the determined value of a property based on initial purchase price compared with the sales prices of similar properties in the area. Your bank or mortgage company may require an appraisal before they will lend you the money for the home. Closing costs – all monies that need to...
Retail Rent Sees Global Growth
There is finally some good news in the land of retail rent. According to research conducted by CBRE, a real estate services and investment firm, global retail rent grew by 4% in 2013, and is expected to continue to rise in 2014, especially in popular markets. The growth seems to be a result of the lack of prime retail space available in some of the most expensive markets in the world, such as Hong Kong, Paris and New York. In 2013, a square foot of space cost US$4,333 per year in Hong Kong, US$3,150 in New York and US$1,426 in Paris. Additionally, there also appears to be a shortage of new retail development, which makes the fight for limited existing space even more competitive and costly. This is especially true in Hong Kong, where space in limited and demand is extremely high, especially among luxury retailers who...
Real Estate Bidding Wars Spark Housing Bubbles in Hot Markets
You may have seen the headlines…“Bidding Wars Return to Boston Condo Market”…“National Association of Realtors (NAR) Announces Home Sales Lowest Since 1999”…“Why Real Estate Listings Are So Hot Right Now”… and others. Do these headlines contain typos? No. Home prices are rising in many areas across the United States and investors from Wall Street and other countries are leading the charge.  They took advantage of distressed real estate during the short-sale glory days, purchasing properties at bargain-basement prices and, rather than flipping those homes as might happen in a healthy housing market, renting homes to former homeowners displaced by short sales and foreclosures. Now, with fewer homes for sale and increasing buyer demand, the bidding wars have begun in earnest, producing bubbles in the hottest housing markets like Charlotte, Los Angeles, and San Diego. Are we headed for another housing crash? No, says Zillow’s director of economic research,...
Crowdfunding Comes to Real Estate Investing
Today, individual real estate investors have more opportunity than ever to invest in income-producing property, thanks to a new rule  - The Jumpstart Our Business Startups Act of 2012 (The JOBS Act) – which ends an 80-year ban on “general solicitation”, allowing private firms and investment funds to broadly advertise securities offerings. Expect to see real estate sponsors giving it their all via the Internet, television, newspapers, and billboards…and, more importantly, keep your eyes and ears open to avoid getting swindled. What Spurred The JOBS Act? The JOBS Act came about as Congress pushed to promote crowdfunding as a means of raising capital. Crowdfunding is defined as the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Currently, The JOBS Act allows only for private placement issuers to sell to accredited investors. Accredited...
Risks That Crouch Hidden In the Grass
“As prudent investors and managers, we must be aware of the realities we face.” ~ John Mauldin No one would argue that there has been plenty of time for discussion of the 2008 financial crisis among central bankers. But coming up with answers, well, that’s a different crouching tiger. Central bankers have accepted no responsibility for ignoring the warning signs of excessive debt, keeping interest rates too low for too long, ignoring housing market bubbles, or failing to regulate banks properly. In fact, they were hugely rewarded with money, power, and prestige, leaving taxpayers to foot the bill for bailouts. Does this point to the need to remove banking supervision from central banks? Or to put politicians in charge of setting interest rates? Clearly, reform of the Federal Reserve is sorely needed. However, more rules and regulations are not needed - rather, holding the feet of central...
Mortgage Applications Continue to Fall
Business Insider reports that mortgage applications, for the week ending November 9, 2013, fell 1.8%, on the heels of a 2.8% decline the week before. Also, the purchase index was down 1% for the week ending Nov. 9, compared to a drop of 5% the week prior. A similar trend was seen in the refinance market with that index dropping 2% during the week ending Nov. 9, a noticeably smaller decline than the 8% drop the week before. According to Freddie Mac, an organization chartered by Congress in 1970 which is designed to provide liquidity in the mortgage markets by purchasing qualifying mortgages from lenders, the 30-year fixed mortgage rate remained relatively unchanged at 4.16% for the week ending, down from a recent two-year high of 4.58%. However, in the following week ending November 14, rates took a significant one-week jump to 4.35%. Rates across the...
Back Again: Bubble-Like Markets
A lot of people are worried that stocks are headed for another crash. Stocks have been rising almost daily, but the missing component is the expected backtracking that comes along with health ascents. And so the questions loom, when is the crash going to occur? Why is this happening is and what can we do to prevent it? Larry D. Fink, whose company, BlackRock Inc., is the world’s largest money manager ($4.1 trillion in assets), has recently stated that the Federal Reserve Policy is contributing the “bubble-like markets”. Fink is quoted as saying, in October 2013, that “We’ve seen real bubble-like markets again. We’ve had a huge increase in the equity market. We’ve seen corporate-debt spreads narrow dramatically”. The most apparent danger for stocks is, in essence, the Federal Reserve; and, because of the contributing factors, it is now imperative that the Fed starts to reduce their heavy...
The Pitfalls of High Fractionalized Investing
A fractionalized Trust Deed is a loan that has many investors who pooled their money for the total principle balance for the borrower.  Typically the interest of the investor is based on what their dollar amount is expressed as a percentage of the total loan amount. A. The more investors and the smaller any one investors stake in a given Trust Deed the less control those investors have. B. When a Trust Deed does go back to the investors those that have more capital to commit end up carrying the cost such as foreclosure filings, attorneys, maintenance, management, taxes and insurance to name a few for those that do not have the funds or will not pay.  In many real life cases; the investors with more to lose (higher principal investments) are more compelled to contribute to keep the asset in good condition. C. Voting is often controlled...