Real Estate Invest

Arixa Capital 2011 Winter Newsletter


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

Maturity of Residential & Commercial Bridge Loans

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.

Los Angeles City Pension Costs Jump Again | FOX 11 News

The story below highlights what is going to become a frequent occurrence--city and state budgets will be strained by large payments that need to be made to public employee pensions. In this case, the City of L.A. is paying $500 million into the pension of fire and police employees for the next fiscal year One reason for the huge payments is that pension fund administrators made overly-optimistic assumptions about the returns they could generate on their investments. As pensions adjust their assumptions to match today's lower return reality, look for more announcements like this one. Los Angeles City Pension Costs Jump Again | FOX 11 News.