News Alerts, Sept. 1, 2013, Evening Edition, 3 New Articles, Real Estate +, Don’t Miss Them

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  1. Time to Buy Retail Properties? | Retail content from National Real Estate Investor

    “…happy days are near again.”

    [By] Michael Bull. Aug. 22, 2013

    The retail sector may have lagged behind its commercial real estate cousins during the economic recovery, but that is changing. In fact, with just shy of $10 billion in retail property investment sales in first quarter 2013, it would appear that happy days are near again.

    Real estate always cycles, and buying at the beginning of recovery has historically been the best time to buy. So is it time to buy retail? With prices below replacement costs in many areas, NOIs [Net Operating Income] improving and interest rates favorable, I say yes.

    Read the source article …

  2. Real Estate ETFs: The Party is Over News Alerts, Sept. 1, 2013, Evening Edition, 3 New Articles, Real Estate +, Don't Miss Them

    The pessimist cites some of his reasons:

    Written by Keith Jurow, Capital Preservation Real Estate Report

    Chairman Ben Bernanke finally warned us that the QE 3 party is coming to an end. All fixed income securities dropped and interest rates spiked.

    Shares of all the mortgage REITs also plunged in price. In the second issue of my Capital Preservation Real Estate Report, I had warned that this decline in share prices was likely to occur.

    As of August 19, share prices of many mortgage REITs are down by 35-50%. Investors are hoping that the worst is over. Let me assure you that the collapse is far from over.

    Last year, Simon purchased nearly $5 billion in commercial real estate and its holdings exceeded $34 billion by year end.

    SPG is heavily leveraged and was paying 5.33% on its fixed rate debt of $20.8 billion, but investors did not seem to care. They were desperate for yields that exceeded US Treasury securities and the SPG dividend did just that.

    By May of this year, the SPG share price had climbed to 182 even though net income per share dropped to $0.91 in the first quarter from $2.18 a year earlier. How can such a sky-high P/E ratio be justified? It cannot.

    We remember that Keith Jurow said that interest-rate resets higher would crash the system by now. The fact that it hasn’t happened doesn’t prove that everything is sweetness and light within.

    It’s obvious the global economy is still reeling. The Fed’s moves, for one, in the not-too-distant future will have a great deal to do with whether it topples sooner than later or at all.

    Read the source article … e-etfs-the-party-is-over

  3. Cash for Keys Program: Should Landlords Pay Renters to Leave? News Alerts, Sept. 1, 2013, Evening Edition, 3 New Articles, Real Estate +, Don't Miss Them

    What’s your experience been using this technique?

    What is Cash for Keys?

    The idea behind cash for keys is to provide an incentive for tenants who can no longer pay rent to move out by a certain date, then receive a cash reward from the landlord. While it seems counterintuitive to pay tenants who cannot pay rent, many landlords are finding that the program actually costs less than filing fees, attorney fees and lack of rent payments during the eviction process, which can drag on for a month or longer.

    Read the source article …