Real Estate Investment, a second look at the RISK factor

Real Estate Investment, a second look at the RISK factor

Generally, when acquiring real estate properties, investors usually put down certain percentag Down Payment and finance the rest. Astute investors and bankers will always keep the "Market Risk" in mind when considering any type of investments. "Always cover the downside first, and the profit will take care itself." Real estate market just like any other free markets will has it's up and down, affected by economy, interest rate, supply and demand conditions and even seasonality. However, when the property price fluctuating, the first part of the equity being affected will be the down payment…Read more …
Asset Based Lending Fund

Asset Based Lending Fund

"Asset Based Lending Fund (ABL Fund)" is the newest category / trend in the hedge fund industry, of which financing is provided to businesses or individuals with asset been provided as collateral at pre-determined LTV ( Loan to Value Ratio ). In the real estate related field, they are typically mentioned as "Private Lending Fund" or "Private Mortgage Fund". CNBC Asset Based Lending Fund news   Unlike "traditional" funds, ABL Funds provide investors with lessor degree of risk ( collateral ), lower volatility while still able to provide upside potential. One example of…Read more …
單純,但很少為人所思考的不動產投資風險

單純,但很少為人所思考的不動產投資風險

一般不動產物件購入時,投資者通常支付頭期款( DownPayment ),剩餘部分則是銀行貸款。 精明的投資家和銀行家銘記在心的一點 - "市場風險"是任何投資的首要考慮。"Always cover the downside first, the profit will take care itself"。 不動產市場一如任何自由市場有其起伏,經濟好壞,利率,市場供需狀況甚至季節都是影響物件價格的眾多因素中的一小部分。 當市場波動,物件價格起伏時,最先受到影響的部分及是頭期款部分。物件價格跌落時,銀行貸款的部分並不會因而改變,相對的,剩餘價值( Equity )則跟著降低。 這是一般投資大眾所未思考的議題:頭期款是不動產投資最大風險的部分。 從另一個角度來看,銀行 - 自古以來及存在最成功的事業,永遠是站在低風險的一方來參與各項投資事業。投資者則是主要的風險承擔者。 精明的投資者可選擇以低風險的角度參與投資項目,而且仍然享有其他參與者相同的獲利。Read more …
Private Lending in the USA

Private Lending in the USA

Definition of Private Lending: Private lending investors making loans secured by real estate, essentially, the investors are acting as banks. Also referred to as "trust deed investment" or "private mortgage investment". Here is the information from  California State Department  regarding trust deed investing. Here is one of our private lending programs for your reference: National Construction Lending Alliance program ( NCLA ) The investors acting as debt partners with experienced real estate professionals in short term projects that typically last between 6 months to 1 year. The loan amount never exceed 70% LTV…Read more …