Scotsman Guide asks Managing Director and CIO of Arixa Capital, Jan Brzeski his thoughts on what's ahead for the commercial market in 2018.
Family Office Review, a media company that serves very high net worth investors and their professional advisers, has published an interview with Arixa Capital founder Jan Brzeski. In the article, Jan describes why many established investment companies have turned their attention to investing in single family housing, and explains how Arixa became involved in this market. To access the full article, 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
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.
Jan published a new article on Seeking Alpha last week, entitled "Apartments‚ÄîA Contrarian View." The article analyzes a recent prediction by Moody's Investor Services that apartment values will increase substantially in the next few years. While Jan is not bearish on apartment values, he believes that the projections reveal a substantial misunderstanding of the market and that the projections are very unlikely to prove accurate. To read the article, please click here.
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.
With a dividend yield of more than 14%, it is hard not to be interested in Annaly Capital (NLY), the largest mortgage REIT. At Arixa Capital we manage a portfolio of real estate loans...a miniature version of a mortgage REIT. In a two-part article for Seeking Alpha, Jan Brzeski applies his expertise as a real estate fund manager to analyzing the risks inherent in Annaly Capital's business model. To read part 1, please click here.
This podcast explains why we do not make loans secured by owner-occupied homes but instead focus exclusively on lending to professional real estate investors. Lending to homeowners who have poor credit is a separate business and we have no interest in this business for a variety of reasons, some of which are explained in the podcast.
This podcast explains the pricing and terms private lenders can expect when lending to established, high volume single family residential rehabilitation specialists. It also explains the loan-to-cost and loan-to-value underwriting criteria that are typical in our market as of mid-2011. The current market is profitable for both lender and borrower, and provides an appealing opportunity for real estate investors looking for high current yields with a solid margin of safety.
This podcast addresses the question "Why do borrowers need private lenders like Arixa Capital?" The answer is that banks will only make loans that fit into their current, restrictive criteria. Many of the loans we make are good quality loans but they don't fit banks' current lending criteria. 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 or give us a call at 310-846-1754.
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.
With more than 230 people present, it was our largest event yet. We held our first event six years ago and it has grown organically ever since. 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 this year. We plan to post this video within the next week, 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 Kari Burns at firstname.lastname@example.org.
Please check this space now and then for company news, events and educational opportunities. If you check in once a month, we promise to have something new and interesting here each time you visit. We strive to add value to the Southern California real estate investment community and look forward to maintaining a dialogue with you here.