Real Estate Information


Real Estate Wealth Protection Through Short Sales


Is a sharp correction in store for the real estate market?

Fannie Mae, the largest buyer of mortgages in the US, is worried. They recently warned that the probability of a housing bust has risen sharply in certain parts of the country.

Fannie Mae and Freddie Mac financed about 43% of new home mortgages last year. That's down from 53% the year before.

Fannie and Freddie only buy "conforming loans" In these days of easy money and competition for borrowers... more lenders are selling mortgages to non-government sponsored loan buying companies. They have less stringent lending standards. That means more risk as it allows home buyers with poor credit records or unconfirmed income to qualify for mortgage loans.

Listen to this! 24% of the sub-prime loans sold to non-conforming buyers in 2004 were adjustable rate mortgages with an interest only feature. And... these mortgages are not restricted to less expensive houses. The share of jumbo mortgages loans ($359,650 & up) accepted without full documentation increased from 27% in 2001 to 51% in 2004.

Fannie Mae warns that the real estate collapse of the late 1980s was preceded by similar patterns.

Some point out that the real estate bubble is effecting value in just certain areas. But they don't understand that just 22 of the most expensive metropolitan markets in the U.S. account for 35% of the total value of the country's residential real estate.

If those markets begin to collapse they will shock real estate values everywhere.

What should you do if you are sitting on fat real estate capital gains. First... make plans now. Once a correction (crash) begins you will have a hard time getting out of your property. Values plunge and buyers disappear.

If you don't believe there will be more than a little dip in real estate appreciation and you want to hold on to your property... here's an idea. Use the stock market as insurance. How do you do that?

Find real estate stocks and do short selling. Well managed this can be an effective strategy.

If real estate values continue to climb you still own your property and continue to accumulate capital gains.

If real estate values begin to fall you sell short selected stocks and profit from the decline, which balances the loss in the value of your real estate. You protect your real estate gain... and maybe even come out ahead on the strategy.

An ETF is an Exchange Traded Fund. That's a basket of stocks that trade under one symbol just like a stock. You can quickly buy, sell or short an ETF through an online broker in seconds. You have instant liquidly... something you don't have with real estate.

Two ETF's that you could be ready to short sell would be:

IYR - A basket of real estate stocks

IYF - A basket of financial stocks.

Lots of areas would be hard hit by a down turn in real estate including: banks, mortgage lenders, utility companies, materials suppliers and especially home builders.

The stocks of leading home builders that would suffer during a real estate bust include:

Brookfield Homes - BHS;
Beazer Homse - BZH;
Centex Corp - CTX;
D R Horton - DHI;
K B Home - KBH

Yes, short selling is a radical strategy for the smaller real estate investor, but aren't you the one who needs the gain protection the most?

You may find a local stock broker that would give you some help, but you should understand some basics about the stock market and trend following.

You can easily learn that here... http://digbig.com/4dxys

Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

How Real Estate Offices Can Connect With Clients In An Omnichannel World
Forbes
Right now, the real estate industry is in the midst of a similarly meteoric disruption, in that technology is changing the way we interact with clients. And as with the upending of the traditional retail industry, there will be winners and losers as ...



The Grand Junction Daily Sentinel

Bray Real Estate adds business brokerage arm
The Grand Junction Daily Sentinel
Bray Real Estate's business brokerage arm is officially part of the commercial real estate division and consists of Bray, commercial broker Kyle Serrano and former Redstone managing broker Bryan Wiman. Wiman brings 14 years of experience with Redstone ...



New York Times

Recent Commercial Real Estate Transactions
New York Times
$10.5 MILLION. 561 West 181st Street (between Audubon and Saint Nicholas Avenues). Manhattan. This 17,526-square-foot mixed-use walk-up has 19 rent-stabilized apartments — two four-bedrooms, 16 three-bedrooms, one two-bedroom — in Washington ...



Mansion Global

Real Estate Mogul and Limousine Service Founder Lists SoHo Townhouse for $16M
Mansion Global
A 118-year-old, nine-bedroom Manhattan townhouse hit the market Tuesday for just under $16 million, listing records show. The massive SoHo property, on Sullivan Street, offers 7,448 square feet of interior living space and an additional 2,078 square ...



Real Estate Weekly

Around Town: Real Estate events, talks and conferences
Real Estate Weekly
12: The fifth in AmTrust Title Insurance Company's real estate summit series will be a “Fireside Chat” with the founding principles of L&L MAG: David Levinson, Robert Lapidus and MaryAnne Gilmartin. The event will be held at the CUNY Graduate Center ...



Las Vegas Review-Journal

Real estate fraud charges dropped against Las Vegas father of 11
Las Vegas Review-Journal
Deon Derrico, the father of Las Vegas quintuplets, is officially free of all real estate fraud charges. The two real estate fraud charges hanging over his head after his April acquittal were dropped Tuesday by the Nevada attorney general's office ...



The Real Deal

A drone program for real estate — here's how it could save lives
The Real Deal
In 2016, falls resulted in 384 of 991 construction worker deaths in the United States, according to federal government figures. But some entrepreneurs are proposing a new tool for construction inspections that could lower the number of worker ...



Forbes

Become The Neighborhood Expert To Build A Strong Real Estate Business
Forbes
Who knows more about every new brokerage model and unique marketing strategy that a top producer has come up with, or knows everybody in the real estate brokerage world like Brad? But in the end, Brad said, it all came down to his dad telling him to ...



New York Times

House Hunting in … Austria
New York Times
“Since the economic crisis in 2008, investors are looking for a safe investment, and interest rates are very low,” said Peter Marschall, chief executive of Marschall Real Estate, in Vienna. More buyers are looking beyond traditional neighborhoods, with ...



GlobeSt.com

Industrial Drives PGIM Real Estate Finance Lending
GlobeSt.com
NEWARK, NJ–PGIM Real Estate Finance, the commercial mortgage business of PGIM, reports that it originated $8.1 billion in commercial mortgage financing in the first half of 2018, much of it propelled by the industrial asset class with lending up 33% ...

and more »

Google News

home | site map
© 2007