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- Will <b>Real Estate Investment</b> Trusts Crash If the Fed Raises Interest <b>...</b>
- <b>Real Estate Investing</b>: What Are You Waiting For? - FortuneBuilders
- Commercial <b>Real Estate</b> Can Help You Get Those Shoes! | The <b>...</b>
- 5 ways to use <b>real estate investing</b> to achieve your financial freedom <b>...</b>
- 5 Best CRE <b>Investment</b> Opportunities for High-Net-Worth Individuals <b>...</b>
- Chinese <b>Real Estate Investors</b> | The Real Deal Shanghai
| Will <b>Real Estate Investment</b> Trusts Crash If the Fed Raises Interest <b>...</b> Posted: 16 Sep 2015 10:22 AM PDT Our Favorite "Liquid Biopsy" Company Has a "10× Advantage" Over Rivals, Expert SaysWhen I recommended TrovaGene Inc. (Nasdaq: TROV) back in March, I described it as the single-best profit idea I'd seen in months. And the stock didn't let me down. Shares of the San Diego-based "liquid-biopsy" company doubled in just three months after we recommended them back on March 11. When the stock sold off after that skyrocket rally, we told you all not to worry. In fact, we advised you to turn that weakness into an opportunity – and accumulate more shares.  |
| <b>Real Estate Investing</b>: What Are You Waiting For? - FortuneBuilders Posted: 16 Sep 2015 02:00 PM PDT  For every new investor that enters the business, there are another five that are still waiting on the sidelines. They have seen what the business can do for those that work hard, and are genuinely excited to get started. However, they have their apprehensions. They may have heard a horror story from a co-worker and are scared. They may have a relative who owned a rental property years ago and remember how painful it was to watch them go though the recession. In most cases, these stories are largely overblown, or even exaggerated. Truth be told, real estate is one of those businesses that most people know something about, but few are experts in. Ignorance, or a simple lack of knowledge, prevents many from even entering the business altogether. Of course there are many other reasons people fail to get their real estate feet wet, but they are just excuses. Most people in a traditional nine-to-five job end up wasting a few hours a day doing nothing. They spend time playing on their phones or reading their favorite website when they are bored. In reality, it is easier than ever to invest in real estate. Even if you aren't tech savvy, there are more real estate valuation and educational websites than ever before. You can receive an email or text from your Realtor on your phone, research the property on your lunch break and check it out on your way home. This doesn't require any more time than you spend checking Facebook or any other social media sites. At worst, you may have to sacrifice some time at night or on the weekend – nothing that won't be worth it in the end. You don't need to have a large bank account to buy your first property. It is certainly an advantage to have some money to cover basic expenses, but it isn't a necessity. In recent years, the number of private and hard money lenders has taken off. It is much easier today to find someone to partner with or borrow money from than ever before. A few phone calls to your real estate agent, attorney or mortgage broker can give you several different options. The right partner will allow you to close more deals than you may have imagined. You may not make as much money as you expect on your first several deals, but you will also have much less risk. As long as you have a desire to network and build your business, a lack of money is not an impossible obstacle. One of the best things about the real estate investing business is that anyone can do it. You don't need a license or certificate to get started. The most experienced investor had to start somewhere. If you commit yourself to learning something about the business every week, you will quickly have all the education you need. There will always be something that you don't know, but it shouldn't stop you from getting started. Additionally, there are many different outlets for you to learn the business. There are more books on real estate than ever before. If there is something you don't know, you can lean on your real estate agent, attorney and fellow investors. The business does not require you to know everything about every different niche. You may be slow getting going because you don't have enough local contacts. In the same way that technology can help research deals, it will also help you gain contacts. There are many new real estate agents in your market that would welcome working with a new investor. A quick post on social media can get the ball rolling. You can also search for networking meetings and local real estate investment groups. It shouldn't be hard to find at least a handful of these types of meetings. In a few short weeks, you can find everyone you need to help close your first deal. These people will be just as excited to work with you as you will be to work with them. The more involved in the business you are, the more contacts you will develop. Anyone that has invested in the stock market can attest to just how risky it can be at times. There is no such thing as a risk free investment. That being said, if you do your homework and invest in solid properties you are able to control the level of risk you are comfortable with. Most investors that have lost money have done so because they didn't know everything about the property or the deal. There is always the chance that something unexpected will come up, but this is the exception rather than the norm. Real estate is far more stable than other investment options. You are in control of what you do with the property and in what market. A single stock can have a greater return, but it can also go down unexpectedly overnight. If you are waiting for the perfect moment to start, you may be waiting a very long time. There is no such thing as a perfect time. If you love the business and want to get involved, there is no better time than right now. |
| Commercial <b>Real Estate</b> Can Help You Get Those Shoes! | The <b>...</b> Posted: 01 Jun 2015 11:00 AM PDT Have you ever stopped to think about how much you likely use commercial real estate on a daily basis? Many of us go to work at the office, come home at night to apartment communities or find fantastic shoes at retail centers. We also need to eat, so we go to grocery stores or treat ourselves by dining out at restaurants. And, all of the goods we purchase have to come from somewhere, which along the supply chain generally includes a stop at a warehouse building. By and large, we all use commercial real estate in our daily lives, yet how many of us have had a chance to include investing in the actual brick and mortar itself as part of our retirement savings plans? With a global investible universe of nearly US$47 trillion, commercial real estate is ranked as the third-largest asset class, behind bonds and stocks[i]. Although commercial real estate funds are available on the stock exchange as real estate investment trusts (REITs), the largest component of the asset class is privately held as direct owned properties. Private real estate has long been part of investment portfolios for large defined benefit (DB) plans, endowments, and foundations and recognized by the sophisticated investment community as an asset class that potentially offers superior risk-adjusted returns. Moreover, the asset class can provide a source of income (think rental income stream from tenants paying rent each month), a way to help dampen volatility of returns, and gain investment diversification as the drivers of commercial real estate returns are different than those of stocks or bonds. I believe that through the ascent of target-date funds as the preferred investment for American workers' retirement savings (Morningstar, 2015 Target-Date Fund Landscape), more defined contribution (DC) plan participants will also get the chance to become investors in private commercial real estate as asset allocators look for ways to help optimize retirement outcomes and broaden investment holdings to include commercial real estate. Since commercial real estate is increasingly being recognized by the investment community as a distinct asset class, greater transparency for the private component of the asset class is occurring. According to Michael Grupe, executive VP of research and investor outreach at NAREIT, in his article "Separating Real Estate from Financial Stocks," in the May, 2015 edition of Real Assets Adviser, real estate will by August 2016 become a new "headline" sector and separate from the financial sector of the Global Industry Classification Standard (GICS). This is a notable move within the public market since real estate will become a much more visible investment opportunity. Managers of private real estate are also working to create more transparency and establish industry best practices for private commercial real estate investment offerings as they are made available to DC plan participants as a component of target-date funds. Indeed commercial real estate is now a large part of the U.S. economy and gaining the recognition it deserves as a distinct asset class. Whether you realize it or not, chances are, commercial real estate plays a big part in your everyday life. So why not consider the potential benefits of including it in your retirement savings plan. Until our next blog post, I will leave you with a little food for thought as you make your next trip to the grocery store or when you purchase your next pair of shoes.
_________________________________________________________ The information in this article has been derived from sources believed to be accurate as of June 2015. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. The information in this article contains general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. The general information it contains does not take account of any investor's investment objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events regarding a particular investment or the markets in general. All expressions of opinion and predictions in this document are subject to change without notice. Subject to any contrary provisions of applicable law, no company in the Principal Financial Group nor any of their employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way (including by reason of negligence) for errors or omissions in this article. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security. Links contained in some blog posts may take you to third-party sites and Principal Global Investors makes no guarantees to the accuracy of the information provided. Categories: Principal Real Estate Investors Tagged: commercial real estate, Defined Benefit, Defined Contribution, Michael Grupe, Real Assets Adviser, REIT 4 Ways to Use LinkedIn Connections to Gain New Business (Case Study) Financial Security on an Extra $25 a Week? It's Possible (and Maybe Even Painless) |
| 5 ways to use <b>real estate investing</b> to achieve your financial freedom <b>...</b> Posted: 01 Sep 2015 03:00 AM PDT Takeaways:
I financially retired at 28 with $22,000 per month in real estate investment cash flow. I still work today, but only because I choose to do so. I developed this cash flow, but not through family connections or wealth. Growing up, my family was very poor in a small Texas town. We often had to choose between buying food or paying the electric bill. Still, I built a sizable portfolio of distressed, single-family homes in Texas — all owned in cash. I did it. And so can you. Here's how: 1. Find an inexpensive, stable real estate market When I started in real estate in 2001, I was in college in Boston. I couldn't buy a doghouse with the $25,000 I had from the stock market. So, I flew back to Texas after graduation. I gave Austin a shot — I couldn't buy a treehouse in Austin. Then I looked south to San Antonio and liked what I saw:
I bought my first house for $25,000, rehabbed it for $5,000 and made 10 percent annually by renting it out. That was the beginning. Lesson learned: Avoid real estate markets with high entry costs if your capital is limited. Lower-cost cities are much easier for beginners to invest. 2. Find private money I had my first property in San Antonio, but the bank account read zero. Sound familiar? Now what? I spent much of the next two years making 200 calls a week searching for private cash. Also, I went to many real estate meetings and always asked around for capital. It wasn't easy, but after all of that, I found a few investors who loaned me over $200,000 at 7-8 percent. I used that capital over the next five years to build a large portfolio of distressed properties. Lesson learned: Be ready and able to make hundreds of phone calls and knock on many doors to find private capital. 3 Become a local market expert In the early years, I swung a hammer and did many rehabs myself. Doing the work myself taught me to understand the little houses I invest in and what they are worth. I learned what a rehab should cost precisely (depending on the part of town). Also, I learned never to spend too much on a rehab. Overspending is a mortal sin of real estate investing, and it derails many investing careers. Simultaneously, I became a licensed Realtor, and spent many long hours studying the local market in the MLS. I became a true expert on my local real estate market, especially in the blue-collar neighborhoods where I buy. Being an expert has enabled me to buy houses usually at least 20 percent under market value in any real estate market in my city. Lesson learned: Learn your local market so you can get houses well under market value. Can't find them in a hot market? OK, then go to a dozen real estate meetings in the next three months, and find an expert real estate investor who can help you find those deals. Offer to help them with their business — anything from making calls to hanging bandit signs — in exchange for helping you find under-market-value deals. 4. Find a good real estate mentor Starting in real estate investing without a mentor is like playing tennis without a racket. Every single rookie investor should work with an experienced, successful investor mentor who has done hundreds of deals and succeeded in boom and bust real estate markets. I found my mentors at city real estate meetings. I also went to real estate events in other cities. I got connected to some of the most successful residential investors in the country simply by networking. Lesson learned: Find a mentor who has been in the business for 10 years, has done 500 or more deals, and has made profits in the most recent real estate downturn. That's someone you want to work with. 5. Invest for cash flow with owner financing In 2005, one of my successful mentors taught me that rental real estate often is profitable, but done right, owner-financed real estate is always profitable. I stopped rehabbing and renting my properties that year, and changed to owner-finance only. Now, I buy a house for cash, do $5,000-$10,000 in rehab and then resell the property with owner financing to a carefully selected buyer. This model has no ongoing maintenance or property management costs. Each house puts $500-$700 a month into my bank account, and I don't have to do a thing. Every one of my investment properties was bought solely for monthly cash flow from owner financing. I never buy for appreciation. Lesson learned: Think about investing strategies other than renting out houses. Owner financing is much less stressful, and the cash flow is more stable. Following those five essential tips is what allowed me to retire at age 28, and you can do it, too. John Majalca financially retired in real estate investing in 2006 with more than $35,000 per month in cash flow; he also is a licensed agent. Visit his website, and follow him on LinkedIn. |
| 5 Best CRE <b>Investment</b> Opportunities for High-Net-Worth Individuals <b>...</b> Posted: 09 Sep 2015 12:00 AM PDT In the midst of a continued U.S. economic recovery and global stock markets volatility, commercial real estate is looking like the safest bet for high-net-worth (HNW) investors. But which real estate sectors provide the best long-term investment opportunities? Over the past five years, Inland Private Capital Corp. (IPCC), founded in 2001 in Oak Brook, Ill., has specialized in serving high-net-worth individuals. "We've been very focused on, and intrigued by assets that have operating characteristics that provide us with an opportunity to add value through little old-fashioned meat-and-potatoes property management," says Keith Lampi, IPCC president and COO. "Our vehicles are more hinged on income, plus they're not very growth-oriented, and that really appeals to a segment of the HNW crowd. Other operators have growth vehicles or development deals that are sometimes invested in value-add-type transactions that garner the interest of some of the HNW crowd. But our investment approach has been very focused on preservation of capital and income. That's one asset allocation the HNW investor looks for, and we are just one segment of the overall picture." Below, Lampi offers his thoughts on the best property sectors to invest in: Multifamily. There's a very strong growth phenomenon that currently exists with the Millennial segment of the population—and even though the Millennial tagline is being used over and over again, this phenomenon really does have momentum. This segment of the population is graduating from college with an unhealthy amount of student loans that's impeding their ability to buy their first homes, so they tend to rent for a longer period of time. But IPCC also believes there's a shift in the appetite for planting roots in any one location—the Millennial generation has a more transient demographic profile. There's a willingness to relocate for job opportunities. They're the children of the baby boomers, who created a lot of wealth, so these are individuals who grew up with very nice, solid finishings as it relates to their homes. They're demanding a very high-end amenity package, and a lot of the multifamily product that's been recently brought to market fits within that appetite. So multifamily is the sector that IPCC been most bullish on. The firm is taking a very opportunistic approach, so it's looking nationwide across a variety of markets: markets that have strong growth in population and jobs, a diverse employment base and strong markets fundamentals. There are some markets that have been overbuilt, where excessive supply has just come online, and it may take a while for demand to catch up to that. But there are a lot of other markets where supply-and-demand fundamentals are more in synch. Denver is where IPCC has the strongest presence. The firm currently manages about 1,500 units there. It quickly established a foothold in that particular market because it's a market that appeals very strongly to the Millennial generation. "A lot of people will move there and find a job after—they don't necessarily move there for a job. The overall growth dynamic in that market has created a very strong demand, which allows us to realize substantial rent growth, and that translates to the overall economic viability of the multifamily sector in that particular market. We've also seen a lot of opportunity in Texas: Both San Antonio and Dallas are very strong markets, Austin has been phenomenal, and to some extent, so has Houston, although there has been a little bit of overbuilding in Houston," says Lampi. Student housing: This sector has that residential undertone, but it's very different asset type when compared to multifamily. There's still a portion of the Millennial generation that is either in school or preparing to go to college. It is very market-driven and every university has different dynamics as it relates to commuter trends regarding on-campus or off-campus housing. But the same Millennial appetite for very high-end, full-amenity-package product is very much alive in the student housing arena. "We see similar opportunities to drive rental growth, which ultimately trends right for our investors on a total return basis," Lampi notes. When it comes to student housing, IPCC has focused less on geography and more on each university's enrollment trends. From a macro perspective, there's very broad-spanning data that suggests that enrollment as a whole for the student housing sector has actually declined, so it makes sense to ferret out which universities are poised for consistent growth that's ultimately going to drive the ability to raise rents as the economy continues to grow and expand and the student population base grows. IPCC typically looks at larger universities, with anywhere from 20,000 students and up, and enrollment trends over the past five years. The firm likes to see enrollment consistently increasing. Retail: The firm has a very heavy presence in multi-tenant shopping centers because it likes assets that have operating characteristics. In retail, national tenants provide an anchor and stability for the overall net income profile, but there are also smaller tenants that are going to consistently be rolling in their leases, and that server as a rent growth driver. From a geographical standpoint, a lot of the dynamics that drive IPCC's asset selection process in the multifamily sector also apply to retail. The firm is looking for areas that have growing populations and, obviously, income levels to support retail spending. Most of the major markets throughout the United States are showing that, so retail traffic and growth in that arena will continue to trend upward. Parking and self-storage: The firm has seen these opportunities increase as the economy continues to grow. Any asset with operating characteristics like parking or storage allows for increases in rental rates on a more consistent basis, but with parking, the parking rate can be reset on a daily or hourly basis. There's an established demand base for parking garages and self-storage units. With both of them, there is stability and consistency in income, and the opportunity to drive organic growth, which is really the growth and unallied income kind of component that the high-net-worth crowd is looking for. Medical office and office: Inland Private Capital Corp. has purchased a small amount of assets in the medical office arena on campuses affiliated with major hospital systems. The health care sector has potential future growth and definitely has legs. The growth in that sector hinges on the aging baby boomer population. It's not an area in which the firm has been a major player, but there are opportunities there, and that is another sector that definitely resonates with the high-net-worth crowd, according to Lampi. "When we first got started, leading into the last market cycle, we were heavily investing in office, but we've pulled back on that because some elements of the office sector have led us to pause," he adds. "I don't want to overstate the changing dynamics of the work environment and the impact the Millennials have had on that, but we're seeing companies that, even though they're growing, have less need for workspace. Many employees are traveling, and are in and out of the office, which has led to shared workspaces—that's one reason companies are signing shorter-term leases, to give themselves more flexibility and not commit to taking up as much office space. This sector is very market driven. If you're looking at major markets like Chicago and New York or other major CBDs, there's probably some opportunity for office investment, but within the context of broader suburban sprawl, we've been a little more bearish on office." |
| Chinese <b>Real Estate Investors</b> | The Real Deal Shanghai Posted: 15 Sep 2015 05:15 AM PDT TRD Shanghai dispatch: Chinese investors are about safety, not "high-octane" assetsChiefs of Cindat, Swire discuss Chinese US real estate investment trends September 15, 2015 08:15AM  Jonathan Miller, Greg Peng, Mark Chu, Dan Kodsi, Sean Mei and Stephen Owens (Credit: Zak Agha) Out of the top 10 cities for global Chinese real estate investment, six are in the United States, with New York City taking the top spot, industry experts said at The Real Deal's U.S. Real Estate Showcase & Forum in Shanghai. Sean Mei, founding partner of Partners Trust China, a real estate intelligence firm targeting Chinese investors, described New York, San Francisco, Los Angeles, Boston, Washington, D.C. and Chicago as "the big six" in terms of investor interest. The U.S. market's "liquidity and transparency" are big draws for Chinese money, he said. The Chinese have invested more than $30 billion in U.S. commercial real estate over the past five years, and experts predict that number to rise in the face of domestic uncertainty in the Chinese market. The panelists, moderated by Miller Samuel CEO Jonathan Miller, discussed investment trends, emerging markets and other factors that could affect Chinese activity. "Chinese institutional capital looks for safe returns, not necessarily high-octane assets," said Greg Peng, CEO of Cindat Capital, which manages U.S. real estate investments for asset manager China Cinda. Cinda owns a majority stake in Aby Rosen's 100 East 53rd Street project, and Peng said Cindat is starting to look at condo, multifamily and hotel repositioning opportunities on the West Coast. "We realize some of the markets are getting a little full," Peng said. "In New York particularly, the market has had quite a run. Areas such as Pasadena and Downtown LA still have a lot of opportunities, at least until the elections." In South Florida, Chinese investment is concentrated in urban areas, said Stephen Owens, whose Hong-Kong based firm Swire Properties has a $3 billion, 2 million-square-foot-plus portfolio in the Miami area. Dan Kodsi, whose Royal Palm Companies is developing the Paramount Miami Worldcenter condo noted that Chinese buyers made up about 13 percent of the building's initial sales. Mark Chu, a managing director at Eastdil Secured, said that because of the search for yield, investors were moving from crowded markets like New York City into secondary markets such as Denver and Austin. Each group of buyers have different capital return requirements, he added, with sovereign wealth funds prioritizing stability and long-term leases while a firm such as Anbang Insurance Group, which bought the Waldorf Astoria for $1.95 billion in February, is interested in the potential of a lucrative condo conversion. |
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