Arixa Capital has released a new white paper focused on the U.S. housing market and single family homes as an asset class for investors to consider. The white paper is based on Arixa's concrete experience investing in this area in recent years, working with local operators who buy properties in a specific geographic area, renovate them, and either lease the homes or resell them.
The white paper explains various ways that investors can gain exposure to this asset class, which Warren Buffett recently endorsed as underpriced and attractive. The author explains the advantages and disadvantages of various investment strategies for both active and passive investors.
The white paper also explains that the activity of thousands of local operators is already helping to work through the backlog of foreclosed homes. Attracted by appealing profits, local operators will help the housing market to heal over the next several years. Policies that aim to solve the problem on a mass scale are neither needed nor advisable.
For a copy of our white paper, please click here.
This edition of Arixa's newsletter includes:
- The growth of our investment programs and the launch of our second fund
- Our annual panel discussion at UCLA in conjunction with the Ziman Center and the Anderson School
- An update on Arixa's first assignment as a court-appointed receiver; and
- Information on a new white paper by Jan Brzeski
To all who registered for and/or attended our event last week, thank you for coming. If you were able to attend, we hope you found it valuable. If you are interested in the photos that were taken of the event, please click here.
To read more about the event, please click here.
The unique value proposition for this event series is the high quality networking and educational opportunity combined with the very low registration fee ($15 for pre-registration or $20 at the door). The fact that beer, wine and appetizers are included in the price is also popular with participants.
For those of you who were unable to attend, or would simply like to listen to the discussion again, the UCLA Ziman Center was kind enough to record the event again this year. We plan to post this video very soon, so please check back on this blog for that link.
If you have suggestions for making the event even better next year, or would like to reach us for any other reason, we would love to hear from you. Please email Jan Brzeski at firstname.lastname@example.org.
This year's event is set for Wednesday, February 8 at 6:30 p.m. at the Anderson School. For details, including speakers and registration, please visit the conference website: http://arixacapital.com/conference. What Makes this Event Special Last year, our event drew over 220 attendees for networking, refreshments and a lively panel discussion among some of Southern California's most established and interesting real estate investors. The reason our event has succeeded while other conferences sometimes draw limited attendance include three main factors:
(1) Great Panel. The panel discussion is unusually candid, as we track a core group of investors through the full real estate market cycle. This "longitudinal study" aspect of our event is unique. We are told each year that our panel is one of the best, or the best, among all the California conferences.
(2) The Price is Right. At only $20 per person ($15 with pre-registration), including food, beer and wine, there is no better value than our conference. We thank our key sponsors including the Ziman Center at the Anderson School, and Gibson, Dunn & Crutcher, for keeping the cost to a minimum.
(3) Excellent Networking. Our event starts with a one-hour reception during which you will meet valuable contacts in a collegial atmosphere. At the reception and after the discussion, you can meet the panelists and other professionals and investors in our industry.
This podcast outlines a recent loan we originated, secured by a strip shopping center located in Ohio. This loan was compelling based on the income of the property. The attractive income outweighed the negative factor of the property being far from our office.
Arixa's latest activities include:
- The growth of our investment programs,
- Upcoming events and Arixa's first assignment as a receiver for a shopping center in Phoenix; and
- Information on our 2012 Real Estate Round Table Discussion
This podcast presents a list of "gotchas"--things that can make what appears to be a good investment actually turn out to be a bad investment, because the income stream ends up being less than what it appears to be. The podcast also presents a critical and at the same time enjoyable step in the process of researching an investment, namely, visiting the property and driving around the property in concentric circles to get a feel for the neighborhood.
This podcast introduces some of the issues involved when underwriting income property such as apartments or shopping centers, when considering making or investing in a loan secured by income property. The key is to understand the value of the property and value is driven by ability to generate cash flow, which in turn is driven by a variety of factors, depending on the property type.
This podcast addresses the issue of how to value income property, in the context of making a loan secured by an income property such as a shopping center or apartment building. The concept of the capitalization rate is introduced.
This podcast addresses problems that can come up when investing in real estate loans. The most common problem is a default, but other problems include natural hazards, fire and bankruptcy by the borrower, to name a few. All of these issues can be mitigated with property structuring, however many investors are afraid of having to deal with these types of issues, which helps explain why investors in real estate loans get paid well for the amount of risk they take.
This podcast addresses the secondary market for short-term, small balance real estate loans. Some companies originate loans and then sell the loans to investors seeking yield. These companies can then re-lend their funds to generate origination fees. This is a niche market with only a small number of players in each region. Please watch our blog as we will be posting one new podcast roughly every week. There will be about 30 podcasts total in this series. If you are interested in learning more about what we do, please sign up for our newsletter at www.stndcap.com or give us a call at 310-846-1754.
As part of our commitment to providing high quality education in the field of real estate investment, Arixa Capital is launching a series of podcasts on the subject of investing in trust deeds (real estate loans). The first podcast in the series is shown below to hear the podcast, just click on the image. This first podcast explains the main differences between investing in real estate loans vs. purchasing and operating real estate itself. In today's environment, Standard Capital is very active as a lender to opportunistic buyers of real estate, because investing in loans provides current income while maintaining an appealing margin of safety.
Please watch our blog as we will be posting one new podcast roughly every week. There will be approximately 30 podcasts in this series. If you are interested in learning more about what we do, or to learn about other educational opportunities brought to you by Standard Capital, please sign up for our newsletter at www.stndcap.com or give us a call at (310) 846-1754.
Thanks for your interest in Standard Capital,
Alternative Investment Seminar
Instructor: Jan B. Brzeski
Date: Thursday April 21, 2011
Time: 5:00 - 7:00 p.m.
April 21st Alternative Investment Class
UCLA Extension Course
Instructor: Jan B. Brzeski
Saturday, February 26, 2011
10 a.m. to 3 p.m.