Research & Marketing: The Infrastructure for Success for Distressed Assets

Research & Marketing: The Infrastructure for Success for Distressed Assets

When an owner is forced to sell a property under extenuating circumstances like bankruptcy, excessive debt, or regulatory constraints, it usually goes on the market at a significantly reduced, or distressed, price. This affords others the opportunity to buy it at, or below, face value. As such, the distressed real estate market has provided profitable investment opportunities for many since the 2008 recession. And while distressed properties offer serious potential, the process of turning them into profit is not quite as straightforward as Flip This House and other “reality” series might suggest.   For those looking to create assets from these properties, the best approach is to follow the advice of real estate professionals with experience, who have helped investors at all stages purchase, rebuild, and sell distressed properties. The knowledge—and in some cases the intuition—gained in their experience is invaluable. First and foremost I warn buyers to realize the investment of their time. Getting a fixer upper is going to either take a serious devotion of your own time and labor, or require you to manage the process of the expertise provided by others. Some recommend turning to real estate companies like Mack Co in Chicago. They provide all the resources you need to purchase,  reconstruct, and broker the sale of a property, while barely lifting a finger. While this might seem like a good approach, it requires the commitment of a monthly fee, and may seriously eat into your profits. For those who don’t want to give up a predetermined fee for these services, it may help to hire other experts to whom you can delegate each...
NJ Real Estate Is Set for a Huge Boom

NJ Real Estate Is Set for a Huge Boom

Real estate always has and seems as if it will always be a main indicator of how well an economy is performing. After all, owning property is one of the most common financial goals, and cannot be procured if consumers lack the financial resources to do so. These financial resources often stem from a well-performing economy. In the East Coast, New Jersey is well on its way to a residential and commercial real estate boom due to increased demand, innovative communication apps, new buyers and new technology.   Increased Demand In the past, real estate buyers were scarce, and property demand was lacking in New Jersey’s market. Now, the winds of change have started to blow and have brought in a swell of demand. Various factors that have contributed to this shift include affordable down payments, low-interest rates and consumers feeling better about their buying power. What’s more is lower gas prices have made it easier for buyers to get out and explore their options over a wider area than they might have considered before. Innovative Communication Apps Facebook ads, new MLS technology and Google’s new approach to keyword optimization are just some of the technological innovations that have made it easier for buyers, realtors and sellers to accomplish their real estate goals. Social media has stretched its influence to the world of real estate, making it easier for users to share and discover listings. The benefit to real estate agents is they can utilize the power of keyword optimization to attract sellers and buyers in their areas, giving both groups more options for who will help them sell...
Will Foreign Investments in Distressed Assets Continue into 2016?

Will Foreign Investments in Distressed Assets Continue into 2016?

Distressed assets are any asset put on sale, usually at a lower price, because the owner is forced to sell it. Since 2012, there has been a huge upswing in these types of investments in the European market. According to “Record Breaking Year for European Distressed Asset Purchases in 2014,” 2014 saw €80.6 billion ($91 billion) of closed European commercial real estate (CRE) and real estate owned (REO) transactions. This was more than 2.5 times the transaction volume recorded for 2013. Will this trend continue into 2016? To answer that question, we have to look at how the 2015 market was and the signs we can see so far in 2016. 2015 Market “Record Breaking Year for European Distressed Asset Purchases in 2014” forecasted between €60 and €70 billion ($67 and $79 billion) closed CRE loan and REO transactions for 2015. According to the article, there were likely going to be fewer distressed asset investments in 2015 than in 2014 because many deleveraging processes were almost completed, which would theoretically limit the amount of distressed asset opportunities. In 2015, there were approximately €85.9 billion ($95 billion) closed European CRE and REO transactions. 2015 saw a lot of changes in regulations regarding distressed assets and bankruptcy laws. These changes have made it easier for companies to sell certain assets, which will affect the distressed asset trends in the years to come. The reforms across the European sector are going to be ushering in new opportunities for foreign investments of this nature. The last quarter in 2015 was the busiest of the year, which seems to point towards an eventful 2016...
4 Reasons Why You Should Never Buy or Sell a Home Without an Agent

4 Reasons Why You Should Never Buy or Sell a Home Without an Agent

The home buying process is just as exciting as it is scary. You’ve got an idea of a dream home in your mind and you’re determined to find it. Yet, the do-it-yourself route can take the joy out of the search. To ease the process and make the right choice, it’s best that you partner with an agent when buying or selling your home. I know it’s possible for you to make the right decision on your own, but here are 4 reasons why an agent should act as your voice of reason. Experts in their field Don’t go into the market thinking you’ve gained all there is to know. Assumptions in the real estate field can be costly. Real estate has its own language and, often, the only people who are fluent are realtors. Without one, many misconceptions of acronyms and other jargon can mislead you. A realtor’s expertise is necessary for the documentation involved in buying or selling a home: dozens of reports, disclosures, forms and other technical documents needed to close a deal will be better handled by your real estate agent. Finding the hidden gems The internet has tons of great sites to help you narrow your search but you can’t efficiently find all of your options on your lonesome. Even though you can easily find real estate listings online; realtors have access to more listings and databases that the general public does not.   Many times there are properties that aren’t yet advertised or won’t be publicly advertised. Your realtor can help you identify hidden gems and it’s important to evaluate all your options...
2016 Real Estate Trends Thus Far- By Richard Maize

2016 Real Estate Trends Thus Far- By Richard Maize

2016 Real Estate Trends Thus Far- By Richard Maize We are only one month into the year and already some new real estate trends are beginning to emerge. According to the 2016 Emerging Trends in Real Estate, released earlier this week by the Urban Land Institute, the next year has a particularly good outlook. Here’s a quick list of the variables that will play a factor in this year’s good fortune. More “low-key” cities are beginning to take off in the real estate world- Cities such as Austin, Portland, San Antonie and Nashville are really taking off. The report suggests that, in addition to having up and coming, trendy bar scenes they also benefit from an overall lower cost of living. Microhousing. The Great Recession has led to an increase in demand for rental housing, which has become increasingly less affordable, in turn the general public has become more open to the idea of microhousing- small but modern, versatile apartments. Increased investment in city infrastructures and public transit. For years everyone has complained about the lack of decent public transportation- which makes it harder for people to live in the more affordable suburbs and commute to work. As of late, there has been much more emphasis put on reforming public transportation systems, especially in LA, where new light rail stations are in the works. Millennials are becoming parents. The millennial generation has put off marriage and having children longer than any other generation in history, which has led to them staying in large cities much longer than their parents or grandparents. With the millennials becoming older we are starting...