SRE Investing Offers Tips on How to Beat the Hedge Funds in the Buy & Hold Game

Beverly Hills, CA (PRWEB) February 20, 2013

Looking to take advantage of the new upswing in the real estate market SRE has been working with large institutional investment groups providing acquisition and consulting services. The new buy & hold asset class is arguably the hottest new discussion on Wall Street. Although the concept of renting single family homes as rental properties has been a reality since the advent of housing, it has up to know been practiced mostly by small mom & pop property owners. “We are now witnessing the first time large investment groups are moving into this industry bringing their volume approach and modern management capabilities.” commented Jay Belson COE of SRE Investing.

Benefiting from there many years of residential real estate investing experience SRE has become a valuable resource for investors at every level.

So with the billions of hedge fund money competing for these distressed assets, how can the little investor win? Buy what the hedge funds cant buy says Seth Phillips COO of SRE Investing. Most of the hedge funds have a mandate that requires that they only buy Single Family Homes, but there is a similar and most of the time a better yield producing product. 2 to 4 unit properties are considered in the same residential category by retail lenders and qualify for very similar financing. This is in contrast to properties of 5 or more units which are considered Commercial. The financing on commercial properties is very different.

The Loophole.

Investing in 2 to 4 unit properties gives the following advantages.

????Lower competition from the hedge funds due to their restricted fund criteria
????The banks generally sell at steeper discounts because of rent control issues
????A smaller percentage of investors are familiar with this investment type
????Generate more rent for the same amount of space
????Have similar liquidity options as single family homes
????Large volume of available properties

Working with small and large investors SRE has become a leader in this niche investment opportunity. Our investors love the returns, and keep coming back for more says Jay Belson. We work hard to protect our investor money and interests, because we want them to be part of our family forever.

This opportunity is foreclosure and distressed property driven. It has even coined a new phrase REO to Rental. This represents the final part of the market correction process. But this is about people too. Whenever possible SREs first priority is to rent the home back to the former owner and offer them a rent to own opportunity to help them get back to home ownership. With time and credit repair, many people can achieve this.

Not often in life is there an opportunity for investors to make good returns while at the same time helping to rebuild neighborhoods.

The Los Angeles market is already on an upward moving trend and soon the distressed properties will no longer be available. This is indeed a time to move fast.

SRE Investing understands the burgeoning trends within the real estate industry and provides investors with the means to grow their wealth. Now is the best time to be an investor, thanks to low prices, low interest rates, wide availability and the growing demand for homes combined with fewer consumers being approved for a mortgage.

By investing in neighborhoods, revitalizing and repairing foreclosed homes, and renting those homes to dependable families in need, neighborhoods grow and prosper, as do investors portfolios.

To find out more about SRE Investing visit

About SRE Investingt: Headquartered in Beverly Hills, SRE Investing specializes in Los Angeles real estate investing. Clients are able to participate as owners, lenders or partners in investments.

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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.

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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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Investment Conference to Feature Noted Short-Seller and Hedge Fund Manager Jim Chanos, Kynikos Associates, New York

Milwaukee, WI (PRWEB) April 17, 2012

What is one good investment idea worth? Both professional and individual investors will be seeking the answer to that question from Jim Chanos, Kynikos Associates, at the fourth annual Make A Difference Wisconsin Investment Conference on May 9 at the Pfister Hotel, 424 E. Wisconsin Ave., Milwaukee. Modeled after Wall Street Week and the popular Ira Sohn Investment Research Conference in New York City, the speaker lineup for this 4th annual conference promises another must-hear panel prepared to deliver top investment ideas and perspectives.

Jim Chanos, founder and managing partner of Kynikos Associates, New York, headlines this years conference. Throughout his investment career, Chanos has identified and sold short the shares of numerous well-known corporate financial disasters. His celebrated short-sale of Enron shares was dubbed by Barrons the market call of the decade, if not the past fifty years. The media has noted his prescience in alerting finance ministers and others to the global financial crisis well before it occurred. His views are regularly covered by news organizations worldwide. He also serves as chairman of the Coalition of Private Investment Companies, testifying before Congress and providing comments to regulations proposed by the U.S. Securities and Exchange Commission and the Financial Services Authority in the United Kingdom.

Leading investment professionals from Milwaukee, called “Milwaukee: America’s Mutual Fund Mecca” per Bloomberg News April 12, are also scheduled to provide a compelling investment idea along with market insights. They are Thomas C. Ognar, CFA, managing director & senior portfolio manager, Wells Capital Management; Joseph A. Frohna, founding principal and portfolio manager, growth strategies / co-portfolio manager, 1492 Capital Management; and Richard Imperiale, president and chief investment officer, Uniplan Investment Counsel.

Ognar has been featured in various media outlets including Barrons, USA Today, Investment News, and Investors Business Daily, and was named a 2011 Mutual Fund All-Star by Fortune magazine. Frohna has been a frequent media commentator in The Wall Street Journal, Investors Business Daily, Barrons, Smart Money, and Fortune; and appeared on CNBC. Imperiale is the author of Real Estate Investment Trusts: New Strategies for Portfolio Management and The Micro Cap Investor: Strategies for Making Big Returns in Small Companies.

Premier sponsor of the event for the third year is M&I Wealth Management a part of BMO Financial Group. All proceeds from the conference benefit Make A Difference Wisconsin, a nonprofit organization mobilizing hundreds of volunteer instructors annually to teach the curriculum in high schools, reaching more than 5,000 students every year with personal financial literacy education.

As it has every year, the Conference is expected be a sell-out. Registration is $ 200 per person on or before April 20 and $ 250 afterward. For more information, and table or individual registrations, visit


Make A Difference Wisconsin, Inc. is a nonprofit organization with a mission to provide financial literacy programs and resources that empower students to make sound financial decisions. Volunteers from the local business and professional community deliver a financial education consisting of three seminars focused on budgeting and saving, understanding checking accounts, and understanding credit cards, credit history/scores, and credit reports. Over 25,000 students have received the program in the almost six years the organization has been in operation.