Arixa founder Jan Brzeski was quoted recently in The Bankless Times (www.banklesstimes.com), a electronic publication based in Palo Alto, California.
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 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.
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.
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.