Real Estate Note Auction Guide

Private Equity Appeals to Some Private Banks Seeking New Opportunities ... Increasing allocation to private equity the key?

21 July 2010 |

Private Banks See Opportunity In Private Equity

July 06, 2010 | by Dow Jones Reporter

(Dow Jones) With optimism slowly returning to the private equity business, some private banks see opportunity.

The credit crisis of 2008 hit private equity hard, making it difficult to borrow for new leveraged deals or cash out of old ones through moves like an initial public offering. Lately, improved credit and equity markets have solved some of those problems, but many traditional private equity investors, such as endowments and pension funds, remain wary of boosting their holdings. That's provided an opening for wealthy individuals, say private banks.

"We're increasing our allocation to private equity," says Guy Dietrich, the head of UBS AG's New York private wealth management office. "It's a tactical decision."

Among the areas he sees attractive deals: distressed debt, distressed real estate, and the secondary market, where new investors can take over others' stakes in existing private equity funds, sometimes shortening the deals' long commitment periods.

There's a historical case for private equity, which fared well in the years following the last recession.

"One of the best times to buy private equity was 2002 or 2003; valuations were attractive," says David Frame, head of alternative investments at JPMorgan Chase & Co.'s private bank. "It's hard to know if that's the kind of market we're in now, but private equity firms are optimistic."

Note Investors: 10 Things to Consider when Selling Your Note ... One real estate investor's opinion...

21 July 2010 |

Sell My Note – Ten Things to Think About when Creating a Note

July 5, 2010 | by Maryland Homes

When you sell property using owner financing the down payment sets the tone for the whole transaction and the value of your note. A common mistake among sellers is to accept a small down payment. It is amazing the price you can get for your property with little or no down payment. Just don’t be amazed when you sell your note the deep discounted offer you will receive.

Here is why it is important. For starters when you sell your property you want to get something out of it right away, like a good down payment so you can go onto you next project. Secondly, and more importantly, you want a 15% – 20% down payment because it puts skin in the game for the buyer. Meaning if times get rough for the buyer he is less likely to walk away with a larger down payment. Statistics prove that the larger the down payment the less likely of default.

Now let’s say that you did receive a 20% down payment on a $200,000 home, $40,000, and the buyer did default. You not only get to keep the $40,000 but you will get the property back, hopefully in good condition and not after a long foreclosure process. The $40,000 protects the seller in this case of default, because if that happens there is a period of time where no payments will be made and legal cost could be added in. You don’t want to be out of pocket for non-payment and legal costs.

Note investors look at the equity a note has in the property. A 20% down payment immediately provides the equity note investors are looking for and will pay top dollar for your note. You have to remember that note investors are looking for the cash flow. They are not looking for a note that has a high risk of default and a large down payment reduces that risk significantly. Note investors don’t want to worry about defaults.

Understanding Real Estate Notes - What are they and how do investors use them?

21 July 2010 |

Real Estate Notes - What They Are and How to Use Them

July 5, 2010 | by admin

Real estate notes, also known as real estate receivables, are legally-binding documents used to assign buyer rights and record details of real estate transactions. These notes are created when property or land is sold and can be used as collateral for other investment purchases or sold for a lump sum of cash.

In essence, real estate notes document the promise of the Buyer to repay the Seller. They are frequently used along with mortgages to aide in the financing of real property, including carry-back financing. In this type of transaction, the seller finances either or a portion or the entire amount of the loan. Typically, the buyer pays the seller a down payment and the remaining balance is paid in installments.

Real estate notes are commonly used when an individual purchases stocks within a property. In this type of transaction a group of investors will partner with others to purchase a property and equally share in ownership. Each investor purchases a specific amount of stocks. The combined funds are placed into a real estate investment trust. REIT’s are companies that own significant amounts of land and operate profit-producing properties.

How to Locate Real Estate Notes for Investing in Distressed Debts ... Where do I find real estate notes?

21 July 2010 |

An Overlooked Way of Finding Real Estate Notes

July 5, 2010 | by Real Estate Finder

Locating real estate notes is one of the best ways ways to become a real estate investor. Most real estate notes are snapped up right a way, and that is a problem. But there is a method of getting those good real estate note leads and turning them into a sale.What is underrated and under used by most real estate investors is ...

FDIC Helps Lenders Take New Approach to Handling Distressed Debts and Non-Performing Loans

21 July 2010 |

FDIC Tries New Approach To Sell Mountain Of Dead-Bank Assets – UPDATED

June 27, 2010 | by Anusha Shrivastava – Dow Jones Newswires

NEW YORK -(Dow Jones)- As they did two decades ago, U.S. federal regulators are holding a mountain of assets seized from failed banks. This time, however, they are relying more on the private sector to hold and sell more of the $600 billion in dud loans, foreclosed buildings and other assets.

Rather than try to sell most of the assets itself, as the government did in the early 1990s after the savings-and-loan crisis, the Federal Deposit Insurance Corp. is passing most of them on to the private institutions it signs up to take over failed banks.

For those assets it must sell itself when it can’t find a buyer for a failed bank, the FDIC is hiring auctioneers, recruiting investors directly and even creating its own asset-backed bonds to try to wring out the best prices it can.

James Wigand, deputy director of the FDIC division in charge of the asset sales, said many FDIC staff members, including himself, are veterans of the previous crisis and “remember what worked well and what didn’t.”

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