Category Archives: Real Estate

Where Do Home Prices Go Next

Over the past five years, much of the home buying and propping up of home prices in the U.S. has been driven by large institutional investors.  Hedge funds, real estate investment trusts, private equity firms, and similar institutional investors have spent more than $20 billion in just the last two years to buy about 200,000 rental homes.  These investors, sometimes along with note buyers, realtors, and others in the industry, have been handsomely rewarded for their efforts. However, many of these large investors have significantly scaled back purchases as of late.  For example, Blackstone Group was spending $100 million a Read More

A Lousy Real Estate Investment

Will some people never learn?  Everyone should recall the collapse of the mortgage-backed securities market, as real estate prices plunged just a few short years ago.  Belatedly, investors found out that declining home values mixed with homeowners who could never truly afford to buy a house made for lousy investments.  The investors were left holding the bag while Wall Street executives reaped the rewards from making questionable transactions and acting in ways that most of us would consider unethical.  Even the rating agencies made money as they labeled horrible deals as grade A. Now comes part two of bad real Read More

Opening the Dam – Mortgage Note

They’re back!  Late night infomercials are once again seeking the gullible to talk about how easy it is to make money in real estate with little risk.  The newspaper headlines help them, with announcements of skyrocketing housing prices and values reaching their peak in cities like Denver and Dallas.  Savvy investors and mortgage note buyers know that almost all of this boom can be attributed to actions of the Fed.  Their actions include keeping interest rates low, feeding trillions of dollars of “free” money into the economy to create the illusion of prosperity, and assuring everyone who will listen that Read More

Guessing Housing’s Next Steps – Buy Mortgage Notes

Using the word “guessing” is not something that you see among writers and commentators these days.  Most of them, using data confirming their theory and ignoring all other facts, state with conviction what will happen next with the general economy, the housing market, or most anything else.  After all, the general public doesn’t want wishy-washy “what-if” discussions – they want concrete statements that they can either agree with or else wave off as a disagreeable political statement.  Investors, in particular, want to hear the opinions of gurus so that they can grab that stock, buy mortgage notes, or purchase a Read More

Note Buyers and Investors – Recognizing the Peak of the Housing Market

Hardly anyone was surprised by the news earlier this week that property values had climbed 6.8% from December 2011 to December 2012, according to the S&P/Case-Shiller index.  Phoenix led the group — where 19 out of 20 cities saw value increases – by gaining 23% over that 12-month period.  Note buyers, real estate investors, and formerly underwater homeowners have rejoiced over the trend.  The media and economists see nothing but sunny skies ahead for housing and believe that real estate will help pull the economy to greater heights.  Some of the more skeptical investors and note buyers may wonder how Read More