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Non-Tech : Investing in Real Estate - Creative Opportunities -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (1468)	3/26/2013 2:17:29 PM
From: deeno	Respond to of 2722

Not sure if its quite on topic, but was interested in buying a light industrial building in S california. I have never been involved in commericial Real Estate. Just wanted to get my feet wet and start to understand the lingo. Building went up for 3mm a couple weeks ago. Could not get any info from the broker on current rents, leases, maintence (though just redone) etc. I guestmated a cap rate in the 8ish area would be competitive (guessing that would be around 2.5). There are now 5 offers, 2 full price no financial contingencies, the listing broker said that the other players assumed average lease rates and occupancy. he thought the owner would come up to 3.2 and perhaps they might see 3.5mm. Perhaps this is normal, but it looks like a lot of money chasing deals to me.

To: Jim McMannis who wrote (1468)	3/26/2013 3:22:17 PM
From: Road Walker	1 Recommendation Read Replies (2) \| Respond to of 2722

I know what you mean. We'd been hearing about all the shadow inventory for years. Expecting for it to hit the market. Little did we know it had been bundled up and sold to investor pools. From the little guys standpoint this was another slap in the face. Now they get to rent or buy for 20% more in some places. Some may be bundled wholesale, but a lot is local retail purchases by the funds. It's a little shocking to me... a dramatic turn in a very old industry of single family homes. Not much new under the Sun but this is new. And I agree that the little guy buyer is getting screwed, but I suppose the little guy seller is benefiting. I'm also wondering how smart these "smart money" funds are.... could be a reckoning. But this time it's not the too big to fail banks, it's private equity and no one there to fix it for them. Florida real estate has buried many speculators over the years (including my Grandfather).

To: Jim McMannis who wrote (1468)	6/2/2013 3:00:43 PM
From: John Vosilla	Read Replies (1) \| Respond to of 2722

Nation's Largest Investor Targets Central Florida Jay's Notes: Hedge funds moved into Charlotte and Atlanta recently and now central Florida, e.g. Orlando. Investors that buy now before the hedge funds bid up prices over the next two to three years, like they did in Phoenix, will make terrific gains from appreciation. We were suprised how fast it happened in Phoenix, but his time it's pretty easy to see what is going to happen. Investors will need to move fast before they get priced out of the market. See our Central Florida homes through this link. fllistings.vflyer.com Blackstone Group, the nation’s largest private real estate owner, has bought up 24,000 homes across the country in just one year. And now through its Invitation Homes hedge fund is reportedly turning its attention to the Central Florida real estate market, buying up thousands of homes and turning them into rentals. However, some housing experts say that now that so many markets are in a low-inventory situation, big investors like Blackstone could corner the market and turn many properties into rentals, thereby shutting out individual buyers. "The bad side is now that we're at a low inventory. The investors are still here, and they're competing against people who want to just live in a home," says real estate professional Ray Lopez in Florida. However, a spokesman for Blackstone’s Invitation Homes told a CBS local Florida station that they’re helping to meet the growing demand for single-family rentals and added that the company tends to have more money to renovate the homes it purchases than the traditional investor. Source: “ Hedge fund buys up thousands of homes in central Florida,” CBS WTEV-47 (May 1, 2013) wheretoinvestus.blogspot.com