Posts Tagged ‘real estate’

Probate Investing, The Real Estate Deal Goldmine

Real estate has always been a competitive market. No matter whether the market is good or bad, people are drawn to the possibilities that real estate opens for making some amazing money. With the downfall of the market and the rocky economy, many real estate investors and professionals have fallen on hard times. The problem really has nothing to do with the economy or the fact that it has been a buyer’s market for a while now, but more to do with the fact that real estate professionals are simply not finding the segments of the market that are hidden gems.

One of the hottest market segments is probate real estate. It is often overlooked. Probate real estate investing is often thought of as morbid or a market without much opportunity. The reality is that probate real estate is a market segment that is alive and well, so to speak.

What’s Hot About Probate?

Probate real estate is unique in many ways. To begin with there is hardly any competition in this market segment. Why? Well, as mentioned above, many investors and real estate professionals see it as something difficult or not worth their time. They fail to see the goldmine in probate real estate. That’s there loss and your gain.

No competition means more money for you. You won’t be competing with others to get the property and you won’t have to worry about negotiating prices so you can get the deal over them. This market is wide open and ready for investors.

Another great thing about probate real estate is that it is a market segment that won’t be going anywhere. It is here to stay because everyone will die at some point. Most people will have estates that go to probate. Various government regulations want to ensure they get the earnings off of the taxes of the estate that is due to them. About a quarter of all cases that come to the court each year are probate cases. That is a lot of opportunity.

Now, the owners of probate real estate are the heirs of the deceased. There are many different scenarios, the property can be left to one heir or multiple heirs who must share it. In many cases, whether one heir or multiple heirs own the property, they simply do not want to deal with it. Inheriting a property means inheriting the mortgage, other associated bills and having to maintain the property. Many people would rather sell and just take the money. This opens the door to the investor.

You get sellers that are motivated and more than happy to take whatever they can get for a property. Most are not going to try to push prices sky high because they simply just want to sell. It isn’t often you will run into someone who is dragging their feet about selling and even if you do there are many more properties out there that are up for grabs. A good deal all around.

How to Get In

Getting into probate real estate investing is not as hard as you may think. First of all, wills and deeds are public records that you can track down for yourself. This will usually give you the information on the property along with the name of the heir that is was left to. You can contact people this way. You also can make things easy and market to probate attorneys. A lot of people use probate attorneys and so you can often get enough business through this route to keep you going. Just drop off a brochure or your business card to local probate attorneys to get started.

No matter what you do, getting into probate real estate is profitable. Probate is something many people won’t touch. All you need is the motivation to get started and you can tap a market that is pretty much competition free and lucrative. It really is a goldmine that is unnoticed in the real estate market. Now that you know about it you have the opportunity to get started in something that can really make you a real estate tycoon.

Be the first to comment - What do you think?  Posted by admin - October 17, 2017 at 2:52 pm

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California Real Estate Commissioner Issues Short Sale Consumer Alert | Business Wire

SACRAMENTO, Calif.–(BUSINESS WIRE)–The California Real Estate Commissioner, Jeff Davi, announced the

issuance of a Consumer Alert by the California Department of Real Estate

(DRE) warning consumers and real estate agents about the perils and

potential pitfalls of short sales. The alert has been posted on DRE’s

Web site at: http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_ShortSales.pdf

“The number of short sales is on the rise and many consumers do not

understand the consequences of such a transaction,” DRE Commissioner

Jeff Davi said. “Moreover, the Consumer Alert educates consumers and

real estate agents to recognize the elements of a fraudulent or

questionable deal.”

To put it simply, a short sale transaction involves the sale of a

property wherein a seller receives an offer from a buyer that is less

than the amount of the mortgage loan(s) on the property. In order to

complete the sale, the seller requests the lender to accept less than

what is owed in order to allow the transaction to close. While short

sales are a popular alternative to foreclosure, like all real estate

transactions, they are complicated and sellers need to lookout for the

pitfalls.

For example, in some instances a seller may be required to pay taxes on

the forgiven debt. In addition, a seller may be an unwitting participant

in a fraudulent transaction wherein an unscrupulous agent or a short

sale negotiator working with a straw buyer will make a lowball offer to

the seller and in turn misrepresent the true market value of the

property to the lender. If the lender accepts the offer, the straw buyer

immediately re-sells it at the true market value, with the profits split

among the conspirators. Had the property been sold for the most amount

of money that the market will bear, the potential tax consequence to the

seller is diminished and the lender would have received fair market

value.

A few of the key elements a homeowner should look out for are the

following:

  • Short sale negotiators must be licensed real estate brokers (or a

    licensed real estate salesperson where that person is working under

    the supervision of his or her broker).

  • Any and all payments must be fully disclosed and made part of the

    escrow documents. If there are any fees to be paid “outside” of

    escrow, this may be the red flag that the payment is illegal.

  • If your agent explains that the buyer is a fictitious person or

    entity, or your buyer is purchasing the property under a

    power-of-attorney or is a limited liability company (LLC), this may be

    a red flag that fraud is involved in your transaction.

  • If you are told that an unlicensed processor, negotiator or

    facilitator is handling your short sale, this is a red flag that

    unlicensed activity is taking place. Only real estate licensees,

    California lawyers acting as lawyers and investors acting on their own

    behalf can engage in short sale negotiations.

For more information about DRE and its programs visit www.dre.ca.gov.

Be the first to comment - What do you think?  Posted by - September 3, 2017 at 1:10 am

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How to Become a RES in Singapore?

What is a RES?

A RES is a real estate salesperson. It is often called a real estate broker or a real estate agent. The mission and function of a RES is to establish contact, i.e. work as an intermediary between existing real estate buyers and real estate sellers (property owners). Also, a real estate brokers' task is to find sellers willing to sell and buyers willing to buy. A RES has a fiduciary relationship with his or her clients; meaning, in theory, a relationship of trust. In practice, it means that a fiduciary takes care of money for another person. That's what a online RES Course Singapore does for his or her client. In a nutshell, the main purpose of a RES is to assist sellers in introducing their estate to potentional buyers and selling it under the best terms for the highest possible price. In contrast, when they function as the buyer's assistants, their purpose is to help the buyers purchase a property – again, under the best terms, and for the lowest possible price.

How to become a RES?

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SEC Complaint against Derek A. Nelson Reveals the Makings of a Criminal

One of the most remarkable cases of securities fraud in recent times is the Ponzi scheme perpetuated by Derek A Nelson of the Capital Mountain Holding Corporation. Derek's company raised nearly $25 million through their scheme and defrauded the investors through their Ponzi scheme before he was caught.

Derek Nelson started his company, Capital Mountain Holding Corporation, as a real estate company. He claimed that his company would take over real estate properties that have become distressed. The company would then refurbish the property or rent it to raise its value to normalcy before selling it off for the full value. It was this idea that Derek used to attract investors.

He enticed the investors claiming that they would receive 10% interest for 3 months on their investments. The money from the investors would be used for buying real estate properties and restoring them. The profits would be collected from the money made on the sale of restored properties. However, this never took place.

The offering proceeds from the investors were never used to support any legitimate businesses operations. Instead, the money was used for payments to the investors under the Ponzi. The money was also used for buying luxury items and paying the personal expenses of Derek Antony Nelson. It was also used for paying various overhead expenses for different companies that were under the control of Nelson. Additionally, some of the money was transferred to two other companies, Plouteo, Inc. and Homaide Real Estate: Services Corp.

Be the first to comment - What do you think?  Posted by admin - September 1, 2017 at 12:39 pm

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Victory Park Capital Expands into Real Estate Sector with Investment in Renovo Financial | Business Wire

CHICAGO–(BUSINESS WIRE)–Victory

Park Capital (VPC), an asset management firm focused on middle

market debt and equity investments, announced today that it will make a

$50 million investment, with a $100 million potential upsize, in Renovo

Financial, a Chicago-based private lending company that assists

rehabilitation investors in acquiring, renovating and selling/renting

residential properties. The investment will refinance Renovo’s existing

portfolio, finance loan portfolio growth and support expansion into new

markets outside of the Chicagoland counties.

“Renovo’s market leadership in the Chicagoland area, experienced

management team and industry knowledge are exceptional,” said Tom

Affolter, partner at VPC. “We believe this is an opportunistic time to

partner with Renovo to help provide loans in the underserved residential

rehab lending space and expand into new markets.”

Founded in 2011 by Kevin Werner, CEO of Renovo, and Granite Creek

Partners, a Chicago-based private equity firm, Renovo originates

short-term rehab loans and long-term landlord loans to creditworthy and

experienced residential rehab investors enabling them to reduce their

cost of capital as well as efficiently acquire and sell properties at

highly attractive rates of return. After building a robust

infrastructure and experienced management team over the last three

years, Renovo will use the funding to accelerate growth initiatives and

diversify its product offerings to better serve its customers.

Werner said, “Our goal for Renovo is to play an active role in

addressing the funding needs of the residential rehab community. The

massive dislocation in the credit markets during the recession provided

an opportunity for a specialized finance company, like Renovo, to

provide capital to creditworthy residential rehabbers. In partnering

with VPC, we are pleased to have secured a large amount of capital to

fulfill the needs of our borrowers as they continue to enjoy success in

their businesses.”

“We are excited to team up with a firm as knowledgeable and experienced

in the specialty lending industry as VPC to continue to scale our

business,” added Mark Radzik, partner at Granite Creek. “With our

seasoned leadership and VPC’s expertise, we are confident Renovo is well

positioned to drive future growth.”

About Victory Park Capital

Victory Park Capital (VPC) is a privately held registered investment

advisor dedicated to alternative investing through the management of its

investment funds. As specialists in credit and private equity

investments, VPC focuses on middle market companies across a diversified

range of industries. Whether as a lender or a control investor, VPC

seeks to identify opportunities where it believes the potential for

reward outweighs the risks entailed. Founded in 2007, VPC is

headquartered in Chicago with additional resources in Los Angeles, New

York and San Francisco. For more information visit: http://www.victoryparkcapital.com.

About Renovo Financial

Renovo is a rapidly growing specialty finance business designed to

capitalize on the significant market opportunity in providing capital to

residential real estate investors. Founded in 2011, Chicago-based Renovo

is the premier provider of financial and strategic support for real

estate investors and property rehabbers who invest in and rehab

single-family and small multi-family properties. Renovo powers the

growth of its customers’ businesses and the communities they serve by

providing timely capital, responsive customer service, and assistance in

all phases of a project for its clients. Renovo’s clients are

experienced rehab investors and project managers, whose goals are to

redevelop properties to buy, fix, and flip for a short-term profit or

buy, fix and hold as a part of a long-term portfolio. Renovo’s

high-touch service, expert advice, and speed combined with flexible and

innovative loan products allow its borrowers to commit to and undertake

projects with confidence. Renovo typically funds small to mid-sized

projects up to $1 million. For more information visit: http://www.renovofinancial.com.

About Granite Creek Partners

Granite Creek Partners is a Chicago-based investment firm founded in

2005 that provides equity and debt capital to public and private

companies and innovative specialty finance for underserved industries.

Granite Creek pursues situations where a flexible investment approach

can deliver unique and highly customized solutions across an array of

investment types. With a focus on investing in fundamentally sound

U.S.-based middle market companies, Granite Creek looks to accelerate

the building of its portfolio companies through global expansion, add on

acquisitions and access to growth capital. For more information visit http://www.granitecreek.com.

Be the first to comment - What do you think?  Posted by admin - August 12, 2017 at 5:08 am

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Another Tenant-In-Common Acquisition; SCI Real Estate Investments Acquires a $22M Office Complex in the San Fernando Valley with 9 Other Tenant-In-Common Investors.

Business & Real Estate Editors

WEST LOS ANGELES, Calif.–(BUSINESS WIRE)–Oct. 10, 2003

SCI Real Estate Investments is pleased to announce the acquisition of the 130,219-sq.-ft. Jade Corporate Center property located in Mission Hills, Calif., (adjacent to Granada Hills) in the San Fernando Valley. This 94%-occupied, 4-building office complex was purchased for $22,164,450. SCI principals Marc Paul and Robert Robotti represented the buyers, and Lynwood Fields of Madison Partners represented the seller.

SCI is one of the nation’s largest 1031 investment sponsors. SCI acquired the property with 9 other tenant-in-common investors who are completing 1031 exchanges, and with SCI’s private investor group.

Marc Paul, president of SCI, commented: “This is yet another example of the growing 1031 tenant-in-common industry. It is projected that of the approximately $50 billion a year in 1031 exchange transactions, only 2% are represented by tenant-in-common programs. By all accounts, within 5 years, perhaps 10% of these transactions will be TIC deals. That’s $5 billion a year.

“With our background, experience, and this growing marketplace, SCI is perfectly positioned to sponsor these TIC investments. The added benefit we bring is that we can sell 1031 exchangers an undivided, fractionalized ownership position as a tenant-in-common with other investors, placing their funds in a much larger and higher quality project than they could possibly afford on their own.”

About SCI

SCI has been in business since 1994, and has a portfolio valued at $230+ million. SCI corporate offices are located in West Los Angeles, and the company is recognized throughout the real estate, investment, and banking communities as one of the most active, professional, and astute real estate investors in the market today.

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Investing For Cash Flow and Financial Independence

Financial Planners will always tell you to diversify. That’s a good idea except that diversification is usually exercised by most people solely through the purchase of many different mutual funds. It is still investing in mutual funds or the stock market. There are ways to obtain wealth (and financial security) that you may not currently be exploring, ways that go beyond buying mutual funds.

Instead of planning for retirement, plan to reach Financial Independence instead. True Financial Independence is an easily measurable known target, and is a goal that can actually be reached within a short period of time. How? Through passive income. Generate positive cash flow from hard assets such as real estate income property. Rental income is passive income for the most part, especially if you have a solid property manager taking care of the details.

The principles of creating a long-term, on-going cash flow can be applied to most kinds of real estate investments. Mobile home lots, apartments, garage/storage units, and houses all make excellent income producing assets. Houses, in particular, low-end houses, make an excellent vehicle for creating long-term cash flow for a multitude of reasons.

While appreciation is often the most significant form of profit for real estate investors, investing for cash flow is easier to determine and with lower risk. So how do you achieve positive cash flow ethically in the real world? You need to buy in the rare market where high capitalization rates (15%+) are the norm. Such markets are usually depressed like Rochester or Memphis and have a large pool of renters. The reason tenants are willing to pay more to rent than they would have to pay to own in such markets is that they believe property values are falling or level in which case not owning is a good idea in spite of the high rent. Positive cash flow is so rare and so desirable that it eventually attracts out-of-town investors. Their coming into Rochester or Memphis or wherever causes property values to climb so that high cap rates are no longer available.

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Be the first to comment - What do you think?  Posted by admin - August 9, 2017 at 2:01 pm

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Commercial Loans With No Recourse Are Still Available In This Credit Environment

A Securities Loan (not a margin loan) allows investors to borrow against their securities portfolio to create liquidity while staying in the market and enjoying the benefits of dual appreciable assets at once. Margin loans have been around forever but they are expensive and risky and they are usually maxed out at 50% of the portfolio value. On top of that, they can be called at any time. Why not explore borrowing up to 80% of your portfolio without all the risk?

If you need money to complete your development project or acquire a distressed asset for pennies on the dollar and you own securities (stocks, bonds, mutual funds and other securities) you or your client should consider a securities loan. Distressed assets are trading for pennies on the dollar and if you have the experience to manage and stabilize them then why not borrow against your securities to acquire them? Most people borrow against the home they live in. And they borrow against their business property. And against the car they drive. So why not borrow against your securities especially since the terms are so good?

Benefits Of a Securities Loan:

– Interest rates between 4.0% and 6.0% – Fixed Interest Only

– No credit or FICO requirements – In fact, you should not be asked for your credit score at all

– No minimum income requirements –

– Interest-only loan payments

– No upfront, application or due diligence fees

– Funds may be used for any purpose, personal or business use, including real estate purchase, business expansion, etc.

– No personal guarantee (a non-recourse loan) . The loan is collateralized by the pledged securities only – not by real estate and not by other personal property

– No residency or citizenship requirements – foreign nationals qualify for this loan – world-wide

– Stocks held in some foreign stock exchanges qualify – call for details

– Close in a matter of days

– Minimum loan size – $500,000 – no maximum

– Terms of 3, 5, 7, or 10 years

– Borrower keeps all dividends and upside market appreciation of the securities

Securities Backed Lending may be the funding solution you’ve been looking for!

Remember, this type of non recourse lending allows the borrower to use their investments to obtain funds for personal or business use. Using your investments as collateral you are able to borrow money with low interest rate financing.

Be the first to comment - What do you think?  Posted by admin - at 4:41 am

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Berger Singerman Hosts Hurricane Preparedness Week Series to Ready Florida Businesses for Storm Season | Business Wire

MIAMI–(BUSINESS WIRE)–Berger

Singerman, Florida’s business law firm, has announced it will host a

series of educational workshops from June 6-10 to prepare local business

owners for the upcoming hurricane season. With a total of 14 named

storms, eight hurricanes and three major hurricanes predicted for the

2016 storm season, this year is expected to be the most active season

Florida has seen since 2012 according to a recent forecast

from The Weather Company’s Professional Division.

These seminars are open to the public and will be hosted by the firm’s

team members specializing in insurance, real estate and construction

litigation. The workshops will focus on an array of topics aimed to

prepare the community in the unfortunate event of a disaster.

The series will include:

  • Monday, June 6:

    • “Best Practices in Handling Insurance Claims” webinar:

      Presented by attorneys Gina Clausen Lozier, Michael Higer and Jeff

      Wertman, this online course will provide insight on best practices

      to assist condominium and homeowner associations with insurance

      claims. More details and link to sign up can be found here.

  • Tuesday, June 7:

    • “Preparing Your Business for Loss” workshop: Attorneys

      Michael Higer, Marc Schuster and Gina Clausen Lozier will host, in

      association with the Greater Miami Beach Hotel Association, an

      in-person course educating hospitality professionals on how to

      prepare for loss of business income resulting from hurricane

      damage. The workshop will take place at Berger Singerman’s Miami

      office located at 1450 Brickell Avenue, 19th Floor at

      8:30 A.M. More details can be found here.

  • Thursday, June 9:

    • “The Burdens of Proof for Public Adjusters” workshop: This

      in-person course will be presented by attorneys Michael Higer,

      Gina Clausen Lozier and Jordan Jacob on helpful tips for public

      adjusters to tackle the burdens of proof of loss following a

      storm. The workshop will take place at Berger Singerman’s Fort

      Lauderdale office located at 350 East Las Olas Boulevard, first

      floor community room, from 9:30 A.M. to Noon. More details can be

      found here.

      This program has been approved for two hours of Florida public

      adjuster continuing education credit.

In addition to the educational courses, the firm will also offer

comprehensive online information to provide the community with tools and

information that can be helpful during and after a natural disaster. The

firm’s blog, Doing

Business in Florida, will feature several new posts focusing on:

  • How insurance agents should prepare clients for hurricane season

  • The effects of storms on governmental entities

  • Considerations for utility companies arising out of hurricanes

  • A hurricane’s impact on the agricultural industry

  • What bankruptcy trustees need to know about hurricane claims

  • Tax implications of insurance proceeds

  • How businesses can protect themselves from cybersecurity issues during

    a storm

  • Preparation tips for landlords discussing potential hurricane risks

  • Considerations when making a first-party claim

For more information on these seminars and to access all blogs, webinars

and articles, please contact Stephanie Vazquez at svazquez@bergersingerman.com.

About Berger Singerman

Berger Singerman LLP, Florida’s business law firm, has more than 80

attorneys working out of offices in Boca Raton, Fort Lauderdale, Miami

and Tallahassee. Members of the firm have expertise in all areas of

commercial law, including banking, business reorganization, corporate

securities and M&A, dispute resolution, employment law, white collar

crime, real estate, environmental and land use, insurance, tax, estate

planning, and probate. For more information, please visit www.bergersingerman.com

or the Doing Business in Florida resource www.flabusinesslaw.com.

Be the first to comment - What do you think?  Posted by admin - August 3, 2017 at 2:05 am

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What Are Jantri Rates And Its Importance in Real Estate Business?

People who belong to real estate sector or frequent buyer or seller of real estate property must have heard the terminology called “Jantri Rates”. It plays a significant role during buying or selling real estate properties.

By definition, jantri rate is a document, which contains the market rates of immovable properties determined by Land Revenue Department, Government of Gujarat for the purpose of registration during the process of Buy/ Sale/ Transfer. Jantri rates are subject to change for different locations or areas of state. Total value of any property and stamp duty payable during buy. Sale. Transfer of that property, is calculated on the basis of the specified rate known as “Jantri Rates”.

Earlier, at the time of transaction of immovable properties, a buyer used to pay stamp duty at the contracted rate. After the registration process, Deputy Stamp Collector would visit the site and inspect the property and fix the value thereof and stamp duty thereon. If the stamp duty is less than the duty paid by the buyer, he had to pay the compensated amount.

In 2007, Government of Gujarat amended rule 45(1) of the Registration Act by issuing a circular, which made it mandatory to pay full stamp duty, payable for the property at the “Jantri Rates” to register any immovable property. The main reason to pass this amendment was to plug the loophole for undervaluation or overvaluation of property and stamp duty. Jantri rates were revised in the year 2011 and critics of this system, especially builders and consumers stated that it has advanced up the land prices significantly. It is obvious that the land price rise is directly proportional to the prices of constructed buildings/ houses/ flats and stamp duty payable on those properties as stamp duty is paid pro-rata. All these price hikes, ultimately have increased real estate prices, affecting genuine consumers and developers in a negative manner.

Be the first to comment - What do you think?  Posted by admin - July 13, 2017 at 1:48 pm

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