Sales of Collateralized Loan Obligations Surge as Rebound from Pandemic Continues to Look Optimistic for Commercial Real Estate
“Sales of securities backed by bundles of risky corporate loans are hitting records, lifted by a recovering economy and demand from yield-starved investors. Issuance of new collateralized loan obligations… totaled over $59 billion as of May [this year], according to data from S&P Global Market Intelligence’s’ LCD. That is the highest ever figure for that period in data going back to 2005.” – Sebastian Pellejero, Wall Street Journal
Commercial Real Estate Rebounds to Pre-Pandemic Levels and Higher – in Some Sectors
Continuing low interest rates, combined with an increasingly optimistic outlook regarding the pandemic, have fueled a rapid recovery in commercial real estate; in some sectors, sales are already outstripping pre-pandemic levels.
5 Tips for House Hunting in Boca Raton, FL
While best known as a vacation destination nestled by the ocean among palm trees, Boca Raton is not solely for tourists. Boca Raton is a city of about 100,000, consisting of a blend of young professionals, seniors, and families who enjoy the temperate climate and plethora of outdoor activities and restaurants, shopping, and museums. The Boca Raton real estate market is highly competitive and features median prices about $100,000 higher than the national average. So if you’re looking for a home in Boca Raton, here are some tips to give you the edge.
How to Flip a House for the First Time
If you watch any home improvement networks, you already know that house flipping is all the rage. Despite these shows being billed as reality TV, they don’t show all that goes into flipping a house. They can make it look a lot easier than it is. If this is an investment pursuit that interests you, make sure to do your due diligence and learn all you can before jumping in with both feet. You want to avoid costly, time-consuming rookie mistakes. Here’s some of what you can expect to encounter flipping a house for the first time.
How To Get Started in Real Estate Investing
If you’re like most people, you might have a preconceived idea that you must be a billionaire to own property or that the only types of property that are available for investing are abandoned buildings. You would be wrong on both accounts. Getting your start in real estate investing doesn’t have to cost millions of dollars, and there are plenty of pieces of property available that are in decent if not excellent condition. Knowing how to start and where to look are just two of the steps you should take, and using this guide can help you with the rest.
What is a First Lien?
Buying a home can feel overwhelming. Not only is it one of the most expensive purchases you’re likely to make, but the process can often be full of terms you don’t understand. One of these terms is “first lien.” What is a first lien, and how do you know if you need one? This article demystifies the home buying process by explaining what a first lien is, why you’d want one, and how to get one.
Getting Started with Private Notes and Mortgages
Let us consider the way many homeowners, developers, and investors approach real estate as an investment. Individual investors, as well as institutional investors, have long realized that investing in real estate with leveraged funds is seriously advantageous since the owner benefits from appreciation on the borrowed funds as well as on their own input. It is this rationale that encourages savvy investors to borrow money to invest in more expensive property and/or to renovate and flip a property. Nothing new here.
US Home Sales Surge to Record Levels in Q2
The current surge in the US housing market shows little indication of slowing down any time soon; figures for Q2 of 2021 show record increases in a number of sales as well as prices of homes sold. Prices continue to rise this year, twice as fast as original predictions. In fact, house prices are forecast to outpace the growth of both GDP and domestic inflation.
Is the Proper Investment Asset Allocation Rule Outdated?
The standard rule – of a portfolio ratio of 60 percent stocks and 40 percent bonds – undoubtedly served investors well for a long time. The once golden rule was based on the concept that stocks carry the likelihood of substantial medium- to long-term gains whereas bonds provide a safety net of reliable, if lower, returns. However, for the last 20 years or so, ever since the dot-com boom of the late 90s, the investment world has realized that traditional advice is no longer fit for purpose. At a time when stocks are soaring and bonds are returning minimal values, investors understandably doubt the wisdom of a 40% bond holding.
Why is Commercial Real Estate Flourishing?
Contrary to expectations, it’s certainly not all doom and gloom for investors in commercial real estate. Understandably, three of the hardest hit areas in the pandemic have been the hospitality industry, retail, and office buildings, which still remain largely empty as remote working continues.
