Investors Poured $29 Billion Into Property Debt Funds, DTZ Says

Investors Poured Billion Into Property Debt Funds, DTZ Says
Investors are putting more money into real estate debt funds after banks reduced the size of their loan books to meet tougher regulatory requirements, DTZ Group Plc said. The amount of money earmarked for real-estate debt funds rose 54 percent to $ 29 …
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Investors have yen for real estate
Real estate investors have their sights set on secondary cities and rents are rising accordingly, Bloomberg News reported Monday. Real Capital Analytics Inc. found that 31% of real estate transactions this year have taken place in secondary and …
Read more on Crain’s New York Business

Property Funds, Bonds Supplant Europe Lenders: Mortgages

Property Funds, Bonds Supplant Europe Lenders: Mortgages
… borrowers who have nowhere else to go,” he said. New bank loans for European commercial real estate fell by about 77 percent to 47.6 billion euros between 2007 and 2011, Michael Haddock, CBRE Group Inc. (CBG) research director, estimates. …. “A …
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American Real Estate Investors Seek Opportunities in European Debt Crisis
Private equity firms, whose investors include pension funds, university endowments and foundations, have been vying to buy portfolios of European bank debt consisting of troubled commercial real estate mortgages. By acquiring these loans at deep …
Read more on New York Times

Mitsubishi targets growth of tiny property funding business
T) is expanding its small real estate financing business to benefit from rising property purchases by foreign investors in the country and an expected jump in refinancing of loans, a senior executive said. Diamond Realty Management Inc, a real estate …
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Private Commercial Mortgage Loans – Hedge Funds Embrace Commercial Mortgage Lending

High flying hedge funds and sophisticated private equity companies are known for playing the capital market fast and loose. They pile on leverage and make big bets on stocks, bonds, options and futures, or, at-least they used to.
 
Over the course of the last 24 months the traditional equity and debt markets have been crushed. Money managers all across Wall Street have lost billions for their wealthy clients. The markets are showing signs of recovery but hard, costly lessons have been learned.
 
Even big money hedge fund investors hate to lose money and many are seeking a more conservative way to make high returns on their capital.
 
Money managers are increasingly embracing private commercial mortgage lending as a way to enhance yield and decrease the overall risk of a portfolio. The credit crisis has greatly reduced the availability of commercial mortgage capital and, at-the-same-time, made it harder for borrowers and buildings to qualify for financing.

The result is a glut of good deals that should be funded but can’t be funded.
 
Some hedge funds are stepping in and helping fill this “funding gap”. This unprecedented move by private investment funds into commercial real estate finance was prompted by the demands of unhappy investors. When wealthy business people put several hundred thousand in a fund and pay a hefty management fee, they have the right to expect results. After being promised double digit yields, many investors lost large amounts of money and actually had trouble accessing the money they had invested.
 
Faced with disgruntled and disenchanted clients, fund managers were desperate for a high return investment that offered at least some measure of real security. For many, private commercial mortgage loans have proved to be the answer. Unlike residential lending, commercial mortgage banking is largely unregulated and posed no barrier to entry for private investment funds. The credit crunch was (and is) keeping real estate investors, large and small, from obtaining the capital they needed to refinance their buildings or buy any new ones. Thousands of excellent deals with very reasonable risk parameters were (and are) going unfunded and the lack of institutional credit drove private lending rates high enough to pique the interest of even the most sophisticated and return hungry fund managers.
 
Hedge funds and private equity firms are finding that they can charge annual rates of 12% or more on the money they lend while their investment capital is fully secured by valuable commercial real estate. Most private lenders require a direct 1st mortgage lien on any property they lend against allowing them to take possession of an asset if the borrower defaults. They can then sell the real estate on the open market to recover some or all of their principle. Very few hedge funds will lend more than 65% of the value of the target property, so their capital is very well collateralized.
 
Commercial mortgage lending will never replace traditional stock market investing by hedge funds or leveraged-buy-out strategies by private equity companies; lending money just does not offer the incredible upside potential that is possible in the capital markets. However, money mangers are finding that they can earn very respectable, double digit returns with much more security.
 
If a public company goes out of business its stock can go to zero; an equity investor can be wiped out. A lender, on-the-other-hand, will always have the ability to repossess the real property and recover at least some of their investment.
 
In recent months hundreds of millions of dollars have been committed to commercial real estate lending by private hedge funds and private equity firms. This trend should continue as the credit crunch drags on and borrowers search for alternative sources to refinance or purchase commercial buildings.

MasterPlan Capital LLC – Commercial Mortgage Loans, Privately Funded – Equity Financing – Asset Management – EZ Online Application – Quick Answers – Close in 10 Days.
Glenn Fydenkevez is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks. He uses his financial resources, banking contacts and extensive industry knowledge to finance commercial real estate deals quickly and efficiently.

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Australians Urged to Invest In Their Own Countrys Property as Foreign Investment Funds Flow In


(PRWEB) July 18, 2012

Foreign investment in the Australian property market is continuing, despite the financial woes of the rest of the world. This, believes property investment strategist, Rick Otton, is a good indicator that Australians too should become involved, and get solid real estate investing training.

The Australian economy has remained stable throughout the financial turmoil that has been faced by most other nations explained Mr Otton. Foreign investors are chasing yields several percentage points higher than what they can get in, say, London, New York, Singapore or Hong Kong.

Most of the property investment funds are coming from Asia, particularly from pension funds, sovereign wealth funds, and REITS.

If overseas investors can see value in investing in Australian property, then it should instill confidence in Aussies as well continued Mr Otton. In the last six months alone, foreign investors have committed around $ 3.7 billion in Australian property markets.

Mr Otton, author of How To Buy A House For A Dollar, has been teaching his creative real estate investment strategies for Aussies for over 10 years, showing how the people (especially those whom the banks turn away) can become property investors.

It frustrates me to hear how good, honest people are being denied home ownership because they cannot meet the tough criteria of the traditional lenders – the banks said Mr Otton. And that they are being disenfranchised while properties are being purchased by offshore entities is increasingly difficult to accept.

It was the inability to meet the requirements of the lenders that was the impetus for Mr Otton to develop his innovative property investment strategies back in 1991, to teach them to through property investment for beginners courses, and, in 2012 to become the author of his property book for Aussies, How To Buy A House For A Dollar

He announced To help people understand these concepts, I have just announced a series of free one day real estate investment training seminars, which will be held in Victoria, New South Wales and Queensland throughout August.

Details of the free one day real estate investing seminar events visit HowToBuyAHouseForADollar.com

About Rick Otton

Rick Otton is an original pioneer of creative property strategies. He is founder and CEO of We Buy Houses, a leading property enterprise which operates in the property markets of the United Kingdom, New Zealand, USA and Australia.

In 1991 he uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio of 76 properties in his first twelve months of active investing.

Since 2001, Rick has taught over 30,000 students to buy, sell and trade residential property without banks, debt or risk. By employing these same strategies many of Ricks students have made over a million dollars a year in cash and equity, using little or none of their own money, year after year.

In 2008 Rick revealed his strategies in the United Kingdom and became the creator of Houses for a Pound.

He has appeared in many Australian TV programs including the 2004 ABC documentary Reality Bites and on Today Tonight, Insight and A Current Affair. In October 2007 Rick gave a way a house on national TV during 2 episodes of Channel 9s Hot Property.

Rick Otton has also been featured in Your Property Network, Australian Property Investor, Lifestyle Trader Magazines and in the books: The Secrets of Property Millionaires Exposed!, Ideas: Original Perspectives On Life and Business From Leading Thinkers, Think and Grow Rich in Property, Insider Property Secrets, and Walking With The Wise.

In May 2012 Mr Ottons book How To Buy A House For A Dollar was published.

Learn more about Rick Otton at More information, including testimonials from real students, is available at RickOtton.com, and about his free real estate seminars at HowToBuyAHouseForADollar.com







Related Real Estate Investing For Beginners Press Releases

Arbor Funds $14.5M FHA-Insured Loan for Louisiana Historic Preservation

Arbor Funds .5M FHA-Insured Loan for Louisiana Historic Preservation
UNIONDALE, N.Y., Jun 28, 2012 (BUSINESS WIRE) — Arbor Commercial Mortgage, LLC, a leading, direct commercial real estate lender, announced the recent funding of a $ 14515000 FHA-insured 221(d)(4) loan for the development of Mason Estates, a 169-unit …
Read more on MarketWatch (press release)

Prudential Mortgage Capital closes first UK commercial real estate loan
NEWARK, N.J., Jun 25, 2012 (BUSINESS WIRE) — Prudential Mortgage Capital Company has closed a $ 108 million commercial real estate loan in the U.K., the first financing since launching its European business earlier this year. Prudential Mortgage …
Read more on MarketWatch (press release)

Commercial Mortgage Firm, Clopton Capital, Offering Aggressive Retail Property
Clopton Capital, a secondary market commercial real estate lender which provides commercial loans for income producing properties nationwide, is announcing that it is seeking funding opportunities for Retail properties. “We are specifically targeting …
Read more on San Antonio Express