Hard money loan funds have numerous advantages over most of the platforms, including more conservative LTV's, higher volume, instant diversification, better transparency, easier management and early liquidation. However, finding a good fund has been very difficult for many investors. Ian Ippolito, investor and serial entrepreneur has written his top 15 hard money loan funds for 2017-2018.
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.
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.
AllAboutAlpha.com is the online publication of the Chartered Alternative Investment Analyst (CAIA) Association. The CAIA is devoted to training investment professionals who focus on alternative asset strategies such as hedge funds, commodities, private equity and real estate. Jan is writing a series of articles about today's real estate investment environment. Because AllAboutAlpha attracts readers from Europe and Asia as well as North America, Jan will curate articles by real estate investment experts from outside the U.S. about which investment strategies are working and why in their respective regions. In Jan's first article, he discusses how yields are compressed for many popular real estate investment strategies, but remain attractive on a risk-adjusted basis for other, less well known strategies. To access Jan's article, "What Los Angeles Traffic Can Teach Us About Investing in Real Estate Today " please click here.
This podcast explains the organic process through which we launched our residential bridge lending program. The founder of Standard Capital had cash available and was looking for something very safe with a fairly short maturity as an interim investment. The residential bridge loans went so well that Standard Capital launched a program allowing other investors to participate in these investments. The process was not planned out ahead of time, it evolved naturally as it became clear that the program really works.
This podcast examines three different sub-markets within the trust deed investing universe: (1) single family residential "fix and flip" six-month loans; (2) single family investor loans of up to 24 months; and (3) commercial real estate bridge loans of 12-24 months. The podcast compares and contrasts these three areas from the investor's perspective. Please watch our blog as we will be posting one new podcast roughly every week. There will be about 30 podcasts total in the series, and this is the seventh. If you are interested in learning more about what we do, please sign up for our newsletter at www.arixacpital.com or give us a call at 310-846-1754.
This podcast outlines selective positives and negatives of investing in trust deeds. The main focus is to highlight the limitations of trust deed investing so that investors go into this type of investing with realistic expectations‚ and steer clear if this type of investment does not match their objectives. Please watch our blog as we will be posting one new podcast roughly every week. There will be about 30 podcasts total in the series, and this is the sixth. If you are interested in learning more about what we do, give us a call at 310-905-3050.
We take education seriously at Arixa Capital we pride ourselves not only on being capable real estate investors, but also on being able to explain what we do and how we do it effectively to a wide variety of audiences. We do not advertise but we do look for opportunities to share our knowledge and expertise to groups of individuals who have a reason to be interested in real estate investment. If you have a speaking opportunity that would be suitable for us, we would like to hear from you.
In late 2010, Jan Brzeski of Arixa Capital Advisors, LLC, (formerly known as Standard Capital, LLC) was a featured speaker in Pensco Trust's webinar series for self-directed IRA investors. Using the links below, you can access the audio file of that webinar as well as the presentation that was distributed to the more than 250 participants in the webinar. As of the time of this posting, Standard Capital has invested successfully in dozens of new loans beyond those that were held at the time of the webinar. In addition, all of the loans we held at the time of the webinar have paid off profitably. To listen to the audio of the webinar, please click here. Please click here to download the webinar's power point and follow along.
This podcast addresses the maturity of both commercial and residential bridge loans. The maturity is the length of time that the loan can be outstanding before it must be repaid. The range of maturities is 6 months to three years, depending on product type.
Investors need to be very mindful of maturity because the lender generally cannot accelerate the repayment of a loan. If the lender needs liquidity prior to a loan being repaid, the only option is to sell the loan which might require some discounting as an inducement to other investors. Of course there is no guarantee that a loan will be repaid on its maturity date.
The investor needs to be prepared to foreclose on any loan if necessary, and subsequently sell the underlying property to recoup principal and interest, which generally would add six to 12 months to the investment time horizon on top of the maturity of the loan.
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.
For those of you who were unable to attend our February 2nd panel discussion, or would simply like to listen to the discussion again, the UCLA Ziman Center was kind enough to record the event this year. Download the file here to view on your computer's media player: The New Normal Panel Discussion, February 2nd, 2011
or watch the video online at http://www.anderson.ucla.edu/x25943.xml
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.
This article makes the argument that home prices are still overvalued relative to their 100-year trend of 3.35% price increases per year. If Federal support for the market were removed (e.g. home mortgage interest deduction and government guarantees of mortgages backed bonds from Fannie Mae), prices might drop 20%. Of course the U.S. Government is very unlikely to destabilize the market currently by removing support for the market given current conditions. That being said, investors in residential real estate need to be cautious and should not assume a return to rapidly rising prices.
Access the article on Wall Street Journal online here: Home Prices Are Still Too High
OR, if you are unable to access WSJ online, I've created a pdf of the article for you to read here: Peter Schiff_ Home Prices Are Still Too High - WSJ
The article appeared in the Daily Journal on October 27, 2010. The Daily Journal is California's leading publication for legal professionals. The article focuses on the investment niche of making loans secured by trust deeds, as opposed to the more usual type of loan secured by real property. To receive a copy, please email Kari Burns at email@example.com.