Tag Archives: brian davison equialt

Tampa Apartments See Massive Rent Increase
If you live in the Tampa Bay metro area, you have experienced the vast increase in rents first-hand. Recently in The Tampa Tribune this story was featured in more detail.  Click the following link to read the full article: http://tbo.com/news/business/study-tampa-apartment-rent-increases-among-largest-in-us-20150414/?page=1 Have you experienced this trend yourself?...
NEWS RELEASE: EquiAlt Launches Long Term Portfolio With 172 Tampa Bay Properties With Additional $4.5 Million Spent In Rehabilitation Funds To Improve Local Neighborhoods.
Throughout Tampa Bay – from the respective County Commission chambers to individual Mayor offices – revitalizing Tampa Bay to improve the lives of its residents is a major agenda item in 2015. While each will do its part, private business must also step up. As part of that mission, EquiAlt LLC (www.equialt.com) announces the purchase of its 172nd distressed property to help redevelop existing neighborhoods by converting neglected homes into livable assets. Initially launched in Las Vegas in 2008 and then in Tampa in 2012, EquiAlt is an alternative investment and asset management company specializing in opportunistic real estate through four SEC-registered funds. While common on the West Coast, real estate investing and acquisition by institutional firms has been rare in the Tampa Bay auction market. Until now. "Most of the public is aware of the traditional real estate market where homes...
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...
Single-Family Home Rental Boom: Who Wins, Who Loses?
For two years, a single-family home rental boom has been sweeping through the Tampa, FL area. Investors are buying up hundreds of single-family homes in attractive neighborhoods and counting on renting them to both the thousands of local residents affected by foreclosures and short sales, and new residents arriving from across Florida or from the north. Demand Keeps Pace with Supply Property management firm Home Encounter reports an increase in leased homes between early 2011 and this past September from about 120 to more than 500 in Hillsborough County. But rather than reducing rents, as some renters wish, average rents have remained fairly flat across three years, running $1300-$1500 in Hillsborough and Pinellas counties. The biggest buyer of Tampa-area rental homes is Dallas-based Invitation Homes, a division of giant investment firm Blackstone Group.  Property records reveal the purchase of 1,801 homes in Hillsborough and Pinellas counties for at...
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...
Wars in the U.S. Housing Market? Bidding Wars That Is…
Mortgage applications for U.S. home purchases have tumbled 17 percent since May on a seasonally adjusted basis and are down 6.9 percent from the same time a year ago. Capital Economics Ltd. last month lowered its 2014 home-sales forecast to 5.2 million from 5.4 million after U.S. pending residential sales for September that slumped 5.6 percent, the fourth straight monthly decline. The firm predicts prices will rise 4 percent next year, half of this year’s projected gain. “We are shifting from a frenzy to where buyers are taking a step back and being more analytical and unwilling to just make rash decisions,” said Ellen Haberle, an economist for Seattle-based brokerage Redfin. Asking prices in September were lowered on about 25 percent of listings, the biggest share in two years, while last month they were cut on 23.8 percent, according Redfin, which tracks 22 cities across the country. The inventory of unsold...
Will Unintended Consequences of Dodd-Frank Make a Mess of the Mortgage Market?
The Dodd-Frank Wall Street Reform and Consumer Protection Act that passed was enacted into law in 2010, commonly referred to as simply "Dodd-Frank", is supposed to lower risk in various parts of the U.S. financial system. It was named after former U.S. Senator Christopher J. Dodd and former U.S. Representative Barney Frank because of their significant involvement in the act’s creation and passage. Dodd-Frank established new government agencies such as the Financial Stability Oversight Council and Orderly Liquidation Authority, which monitors the performance of companies deemed “too big to fail” in order to prevent a widespread economic collapse. Ultimately, the purpose is to protect consumers from the crazy home-lending excesses that caused the Great Recession of 2008. Banks are exiting from the mortgage business in large numbers, primarily because of the high operating costs and heightened litigation risks imposed by the Dodd-Frank financial-reform law. As banks...
Alternatives to the Stock Market Bubble
On Friday, November 8, all 3 of the major U.S. stock indices, the Dow Jones Industrial Average, NASDAQ, and the S&P 500, all closed at all-time record highs. As a whole, the U.S. stock market has been soaring recently, bringing untold ‘paper profits’ to millions of investors. However, there are people associated with the market that believe it to be significantly overvalued. Fund manager John Hussman points to the following measures in his weekly Hussman Funds Newsletter during the first week of November:
  • Cyclically adjusted price-earnings ratio (current P/E is 25X vs. 15X average)
  • Market cap to revenue (current ratio of 1.6 vs. 1.0 average)
  • Market cap to GDP (double the pre-1990s norm)
These are not just slightly overvalued indicators, they are grossly overvalued indicators. In his same newsletter, Hussman provides commentary that supports his claim that the stock market crash that is forthcoming will be extreme, somewhere in...
A Unique Credit Instrument Fueling an Equally Unique Trend in Home Ownership
From the time of the real estate pricing peak 2006, the average price or residential real estate across the United States fell 35%. This price drop precipitated the start of a quiet trend among private equity firms, hedge funds, and real estate investment trusts. Companies such as Blackstone Group LP have entered into transactions to purchase almost 200,000 residences, paying upwards of $20 billion for the properties. Many of these properties are in some of the hardest hit housing markets in states such as Florida, Nevada, California, and Arizona. These companies are looking to take the landlord/tenant relationship to a new level. When purchasing distressed properties, in bulk, from lenders that foreclosed on their original mortgagees, these companies gain several significant advantages. First, they are able to negotiate a better price.  A commercial lender is in the business of lending money, not managing real estate. ...
Second Trust Deeds
A second Trust Deed is also called a second mortgage and maybe referred to as mezzanine financing due to its subordination to a senior debt, but in the realm of private lending usually does not have an equity stake in the asset.  A second position Trust Deed is recorded after the first position Trust Deed and is second in all considerations such as payoff and payments to investors.  This significantly increases the risk of the investment for the investor. These loans are sometimes attractive due to the higher interest rate charged to the borrower and passed on the investor.  In many cases the second Trust Deed is offered as being ‘as secured’ as the first Trust Deed by the value of the asset with an opportunity to get a higher yield.  This is where PITFALL #4 becomes very important.  A potential investor in this type of...