News Alerts. Sept. 20, 2013. Morning Edition. #RealEstate

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  1. Welcome to the 'revocery' | Inman News

    Equal time for opposing views? Well, we think it is wise to read all sides of the various economic ideologies. This link is to an article on inmanNEWS by an obvious libertarian capitalist. While Louis makes some good points, we think he doesn't understand modern money mechanics.

    Any medium of exchange is a psychological agreement to honor it, even if that medium is gold. The difference between gold, for instance, and what is referred to as a fiat currency (a misnomer, as gold too is decreed by fiat) is that one must usually be dug up and refined while the other can be created as needed and on demand to meet the requirements of a growing economy where currency does not become scarce and a hindrance on, for instance, recovery.

    We shall see whether Ben Bernanke's Fed just made the wrong choice and rather should have turned to liquidation and austerity (Louis's apparent approach), etc. We believe Ben Bernanke will be shown to have made the right choice under the circumstances, including the Fed's overly limited mandate.

    Read the source article … http://www.inman.com/2013/09/13/welcome- to-the-revocery/


  2. Jobs, Debt And Home Prices Since The Crisis, In Five Charts : Planet Money : NPR

    The housing bust started in 2006. The recession started in 2007. But it was in September, 2008 — five years ago this month — that the financial crisis hit its most intense moments. Here's a look at how U.S. households have fared since then.

    The charts are refreshingly easy to read.

    Case-Shiller is not the best choice, but it's probably adequate for the purposes of the linked article.

    Note that even though there are hundreds of real estate "experts" saying that we are no where near a bubble because we are no where near the pre-crash housing prices, the index shows in the article that we are quickly closing in on just that. Is that chart wrong?

    We know there are areas in the country where prices have blown right by the pre-crisis peak. Those represent local bubbles in some cases.

    Read the source article … http://www.npr.org/blogs/money/2013/09/1 3/222063196/jobs-debt-and-home-prices-si nce-the-crisis-in-four-charts


  3. Better Strategies to Manage Single-Family Rentals | Real Estate and Rental Marketing Blog for Professionals – Zillow Pro Blog

    According to Chicago's Metropolitan Planning Council's white paper on Managing Single-Family Rental Homes, single-family management can incur up to 35% higher costs than multifamily management. However, single family renters are more likely to stay put for longer, meaning low turnover rates and higher stability. It's important not to compromise high quality customer service for your owners and residents despite the distance and cost. Managing single family rentals requires a different approach from managing a multifamily complex. Make sure you're using these strategies to work with residents and satisfy owners:…

    Read the source article … http://www.zillowblog.com/pro/2013-09-10  /better-strategies-to-manage-single-fam ily-rentals/


  4. Feasibility Of Alternative Investment In Real Estate | Benzinga

    First and foremost, let's analyze how IRAs fare as an investment in the real estate domain. Traditionally, the majority of well known financial institutions that act as custodians for IRAs mostly restrict investments into a limited corral of options such as publicly traded stocks, bonds, mutual funds and CDs. Whereas a self-managed IRA offers a wider diversified investment potential, a self-managed IRA allows the owner of the account to personally self direct the retirement account into a wider array of alternative investment options. With a self-managed IRA, the retirement holder can purchase and hold investment real estate within their retirement portfolio. Although, the purchase of real estate inside an IRA is generally not considered a traditional investment option for most IRA holders, this trend is changing.

    If an account is properly structured, then tax court also allows for a form of self-directed managed IRA dubbed as the checkbook IRA. Using the self-directed IRA with check writing privileges, the retirement investor can have more autonomy as to where their retirement funds are invested while simultaneously saving time and money. When an investor has checkbook writing rights for their IRA account, they can simply write checks from their account on any transaction related to the investment without having to wait for a custodian to administer the checks on their behalf.

    Read the source article … http://www.benzinga.com/markets/13/09/39 11486/feasibility-of-alternative-investm ent-in-real-estate


  5. Your experts: Three C's of commercial real estate loans – TCPalm.com

    Most individuals have a general understanding of what it takes to qualify for a home loan, but few know what lenders require for commercial real estate loans:

    1. Commercial Real Estate Property Collateral

    2. Commercial Real Estate Property Cash Flow

    3. Borrower/Guarantor Credit and Income

    Read the source article … http://www.tcpalm.com/news/2013/sep/11/t hree-cs-of-commercial-real-estate-loans/


  6. What's killing the US housing recovery? | Heidi Moore | Money | theguardian.com

    … people are going to stay locked out of the housing market until the economy recovers, they have more money in their pockets, and there's a larger supply of affordable houses. Until then, don't believe the hype about interest rates.

    Heidi is repeating a line that just doesn't hold up.

    People don't just buy a house. They also usually rent the money to do it. The higher the interest rate, the higher the rent payment on that borrowed or rented money. Higher interest rates can price people right out of the market unless they are willing to purchase a shoe box size home at a monthly payment that only months earlier would have gotten them twice the square footage.

    None of that is to say that the other things Heidi offered up are not valid.

    As for the "correlation" or not, methodology might be the problem; but, we really don't need a "study" to inform us that higher payments can, and do, price people out of the market and right back into renting. We know of people who made that very decision.

    Read the source article … http://www.theguardian.com/money/us-mone y-blog/2013/sep/13/high-mortgage-interes t-rates-economic-recovery


  7. Not One Top Wall Street Executive Has Been Convicted Of Criminal Charges Related To 2008 Crisis – Compliancex | Compliancex

    Will top bankers' behaviour ever land them in jail? Or are bad business decisions even a crime at all?

    Five years on from the bankruptcy of Lehman Brothers, the debate over how to hold senior bank bosses to account for failures is far from over, but legal sanctions for top executives remain a largely remote threat.

    Even as laws evolve — in Britain, the government wants to criminalise recklessness in banking — a repeat of the global financial crisis and near-collapses of 2008 would not necessarily result in many more prosecutions today, lawyers say.

    Well, the aftermath of the S&L Crisis in the US begs to differ. The difference from then to now is nothing but the political decision today not to go after those who defrauded the public. It's called moral hazard, and in the US (& UK, etc.), decisions to turn a blind eye simply tells those who committed the fraud that they will be able to get away with more of the same in the future. Regulations come, and then once the fraud perpetrators have enough money and enough time has gone by, they just reduce the regulations again and repeat the fraud claiming it wasn't criminal but just a bad but honest choice.

    Read the source article … http://compliancex.com/not-one-top-wall- street-executive-has-been-convicted-of-c riminal-charges-related-to-2008-crisis/


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