The Wages of Unemployment

The article below appeared in the Wall Street Journal last week and was written by Richard Vedder.  While it does not directly impact mortgage buyers or owning real estate notes, it is an interesting commentary about the effect of government handouts.  Reprinted with permission. From the mid-17th century to the late 20th century, the American economy grew roughly 3.5% a year. That growth rate has since declined significantly. When the final figures are in for 2012, the annual rate of real output growth for the first dozen years of this century is likely to be about 1.81%. What accounts for Read More

The Rising Cost of Government

A few weeks ago in this space, I made the case for why real estate will perform poorly in the medium-term, driven by a variety of factors.  This trend will affect homebuyers, mortgage buyers, investors, banks, and anyone else with a financial interest in real estate.  Mortgage buyers like me need to be especially aware lest our mortgage notes go from having lots of equity to suddenly being underwater.  Fitch, a well-known international credit rating agency, believes that real estate values are overvalued now by at least 10% (per Housing Watch, 1/4/13), and there are good arguments for why it Read More

Brown and Gray in California

Although this article does not deal directly with real estate, mortgage notes, or mortgage note buyers, overall economic conditions and state regulations affect all of these areas and more.  I share the information below to make the readers aware of what is happening in California and the path that we are heading down.  Leading up to the election a few weeks ago, Californians experienced a barrage of TV advertising and seemingly signs on every street corner telling us to vote for Proposition 30, which would raise the sales tax ¼ percent-point and increase the income tax for anyone making over Read More

Finding a Floor in Housing

“U.S. home prices rose in September for the sixth straight month, signaling that the housing market is in the midst of a recovery” screamed the headline in MarketWatch earlier this week.  Indeed, there has been positive news for housing lately.  Besides rising home sales and prices, foreclosures have been declining and stocks of homebuilders have done well this year.  Prices have risen significantly in Phoenix and some coastal areas in California and Florida, with numerous stories of bidding wars and sellers’ markets. Consumer confidence has also reached up to levels not seen in the last few years, and housing is Read More

Selling a Real Estate Note 101: Best tips for selling and buying a mortgage note

Welcome back to our series “Selling a Real Estate Note 101”. If you have been following along, hopefully you have gained a basic understanding of what is a mortgage note, the process of selling your mortgage note, how the value of your note is determined, what to look for in mortgage note buyers, and some knowledge of your note sale options. If you would like more information on any of the above topics, please call us directly so we can help answer your questions. Now that we’ve covered the basics, we wanted to summarize the most important tips for selling Read More