Still, Weiss and others who are trying to enable more investors to tap real
estate equity said that they are certainly not ruling out working with owner - occupant buyers with or without mortgages after their initial services have time to mature.
Not exact matches
The French bank Societe Generale
says it has observed a notable shift in Indian savings to
equities from traditional interest - bearing accounts and physical assets like cash and real
estate.
Usually, recreational real
estate follows the trend of urban markets, as homeowners take advantage of their growing
equity to buy a second place — «the ripples spread out,»
says Jurock.
While inflation is not showing up in the traditional indicators like personal consumption expenditures and the Consumer Price Index, Rosenberg
said it is elsewhere — «art,
equities, corporate credit, real
estate, cryptocurrencies, commodities, precious metals.
Blackstone
said in July that Hilton's share price at the time equated to a multiple of 2.8 times its original investment, which came from its private
equity and real
estate divisions.
My intrigue stems back to my earlier comments that the long term trends in appreciation in real
estate are simply not very competitive versus
equities, despite what Robert Kiyosaki had to
say in his book, Rich Dad, Poor Dad.
«In a nutshell, we're bullish on Japanese
equities,» he
says, adding that rising wages would most benefit sectors such as real
estate, insurance and media.
Blackstone
says it spent $ 62.5 billion on properties after the Financial Crisis, and has $ 101 billion in total real
estate assets under management — bigger than even their private
equity asset pool.
«While
equity market performance across Asia - Pacific was mixed in 2013, strong economic growth and real
estate prices in key markets drove healthy overall wealth growth,»
said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance.
Liquor retailers
say the prospect of Treasury Wine
Estates» portfolio of 80 - plus brands being owned by an overseas company is unlikely to produce a customer backlash, unless price rises are pursued by new private
equity owners.
Treasury Wine
Estates chief Michael Clarke
says he has the strong backing of the winemaker's biggest shareholders, as well as private
equity suitors circling the group, to embark on an acquisition campaign in the United States and reverse years of drifting by the business.
Treasury Wine
Estates boss Michael Clarke has a lot of explaining to do as he fronts the market to
say private
equity was sent packing a second time round.
Treasury Wine
Estates chief Michael Clarke
says he has the backing of bigger shareholders, and private
equity suitors, for an acquisition campaign in the US to reverse years of drifting by the business.
«The approaches by KKR [& Co] for Treasury Wine
Estates and Pacific
Equity Partners for SAI Global in the second half of financial year 2014 are expected to herald the return of private equity bidders to Australia,» he said in a report that noted drivers of act
Equity Partners for SAI Global in the second half of financial year 2014 are expected to herald the return of private
equity bidders to Australia,» he said in a report that noted drivers of act
equity bidders to Australia,» he
said in a report that noted drivers of activity.
«Treasury Wine
Estates announced... that it has received another indicative, non-binding and conditional proposal at a price of $ 5.20 per share from a global private
equity investor who at this time wishes to have its identity kept confidential,»
said Deutsche Bank
Treasury Wine
Estates chief executive Mike Clarke
says the company is on the acquisition trail in the United States at the premium end of the market, as he reinforced his desire to keep running the company even if one of the two private
equity suitors takes control.
Treasury Wine
Estates had $ 275 million wiped from its market capitalisation on Monday after terminating talks with two private
equity suitors, with chief executive Mike Clarke
saying he doesn't believe they will return with a fresh proposal.
«In fact, there may be diseconomies of scale for larger public pension plans because of the complexity of implementing their investment strategies, which include contracting out for external experts — a practice that has become increasingly popular, with plans investing more in non-traditional assets such as real
estate, infrastructure, and private
equity,»
said the report.
Helping
Equity to Happen — Mark Twain
said, «Don't wait to buy real
estate.
In 2002, many
said they were exiting
equities, and moving to what they understood, residential real
estate.
«I have read many real
estate investing books over the years and I must
say,
Equity Happens is the best one I have ever read!
James Shilling, Ph.D., another panelist and the Professor of Real
Estate and Urban Land Economics at the University of Wisconsin - Madison
said «The ability to refinance for lower interest rates is an important element of the U.S. system as it allows consumers to take
equity out of their home and put it back into the economy.»
«My father's
estate, like so many other farmer's, had all the
equity in farmland,»
said Bruce Davenport of Davenport Farm.
Vincent Nobel, Head of Real
Estate Debt at Hermes Investment Management,
said: «Providing funding for Thor
Equities and Chenavari Investment Managers, to help support the refurbishment and leasing plans for 147 - 155 Wardour Street, will allow the JV to continue its strong European growth story.
Well, we can not
say anything about real
estate, but yes, you can always invest in
equities and insurance altogether.
«I think that is indicative of an appetite from foreign investors generally who want to invest in U.S. real
estate,»
says Scott Onufrey, a senior vice president at Kimco, which is based in New Hyde Park, N.Y. Kimco also has access to
equity through its partnerships with about two dozen different institutional investors.
«The reason is that real
estate embraced technology later than other industries,»
says Morey of
Equity Office.
«It's a personal choice for what you need it to do and what you're willing to spend,»
says Mike Prince, an agent with
Equity Results Real
Estate in American Fork, Utah.
«We know there is a lot of interest from foreign investors in U.S. real
estate, and especially the conservative deals that we do, and we have had some really good success with it,»
says Richard Kaplan, CEO of Syndicated
Equities.
Rising interest rates might make private sector companies even less inclined to borrow to fund infrastructure projects if the interest deduction ends,
said Brai Odion - Esene, a senior director at Hamilton Place Strategies and spokesman for the BUILD Coalition, whose members include the main lobbies for the private
equity and real
estate industries.
Says Levy, «The entire REIT market suffered due to the lack of
equity capital flowing into the sector during the year... creating a significant capital vacuum and creating the need by mutual fund portfolio managers to sell real
estate equities even if they may not have believed it was a prudent investment decision.
That's the biggest amount in first - round
equity funding ever received by a company operating in the Internet home and real
estate category, Homeadvisor
says.
«In lieu of selling, if there is a lot of
equity stuck in the deal and you can't get your price, lenders are certainly willing to give borrowers cash back,»
says Peter Norrie, managing director with real
estate capital services firm Cohen Financial in Portland.
A majority of respondents (54 percent)
say those placements come in the form of investments in private real
estate equity funds.
«While Blackstone
said economic net income from private
equity nearly doubled, the firm reported declines in its real
estate business, which is its biggest segment, and its credit business, which it
said was hampered by a challenging market in the fourth quarter.
«The market is in such a frenzy looking for yield that there are more and more options for the borrower,»
says Dan Walsh, managing director of the Private
Equity Group at Cleveland - based KeyBank Real
Estate Capital.
But the private
equity doyens are imaginative when it comes to raising cash from investors,
says Beth Di Santo, founder of the New York - based Di Santo & Associates law firm, which works on real
estate portfolio sales.
The office REITs with the highest quality real
estate that remain public are
Equity Office Properties Trust, Boston Properties, SL Green, Maguire Properties, Highwoods Properties and Corporate Office Property Trust, he
says.
But buying Ramco would also force
Equity One to take on $ 670 million in additional debt and possibly eat into its cash reserves, which at the end of last year totaled just $ 5.4 million,
says Jason Lail, senior real
estate analyst with SNL Financial LC, a Charlottesville, Va. - based research firm.
Private
equity funds can use their cash and expertise to take on deals that are too complicated, and therefore too risky, for insurance companies, pension funds and other institutional investors,
says Tom Fish, co-head and executive managing director of the real
estate investment banking team at Jones Lang LaSalle.
Even with billions of private
equity sloshing around, he
says, «the privatization community» doesn't want to buy bad real
estate in slow growth markets.
«It's my view that pension funds will continue to increase their commercial real
estate allocations, particularly when you have a low interest rate environment and low returns on alternative investments,»
says Christopher R. Ludeman, president of capital markets with global real
estate services firm CBRE Group Inc. «There will be continued movement to expand their real
estate equities.
«We have a lot of borrowers that we have financed over the years that are seeing [lower] return on the
equity side of the business, and they are now investing in UC Funds on the debt side,»
says Daniel Palmier, CEO of UC Funds, a specialty finance and investment firm that provides both debt and
equity for real
estate investments.
«Consultants will look at an asset base and a corporation's need for capital, and
say that real
estate carries a cost for funds similar to other forms of debt and
equity.
Mark Quam, CEO of Versus Capital, which just launched a private
equity real
estate mutual fund,
said REIT providers are going to have to show their real yield on cash flow.
Also, we lost over 250k in cash during the perfect storm of the depression (I don't care what economists
say, we are in depression that is currently experiencing an artificial bubble), my illness and hospitalizations and expensive treatments, combined with devaluation of real
estate we had 50 %
equity in, and a partner would had no interest in the financial operations of the business had us right on the edge of bankruptcy.
One thing I would consider is to have the tenant sign something to the effect of any improvements become part of the real
estate and the tenant will not receive any credit toward rent or security deposit, nor will
said improvements give tenant any
equity in the property.
Think Creatively If you're looking at a good property with a high chance of profit, consider securing a down payment or renovation money through a home
equity line of credit, from credit cards or even via some life insurance policies,
says Ben Spofford, an Ohio home remodeler and former real
estate investor.
«In every real
estate transaction, securing
equity is the hardest thing,»
says founder Mark Quam.
Mid-market private
equity real
estate funds have positioned themselves to have a favorable run in 2016, as they carve out investment niches in second - tier and tertiary real
estate markets,
say industry professionals.