If you’ve ever longed for real estate investing advice from the “Oracle of Omaha,” your wait is over. In his latest shareholder letter released March 1st, 2014, Warren Buffett shares the details and lessons learned on two of his real estate investments that – spoiler alert – were wildly successful.
Crowdfunding is all the rage, attracting everyone from individuals who want to get in on the next big thing to regulators who want to protect you. And one segment drawing a lot of attention of late is real estate, an investment formerly accessible mostly just to those who could afford to plunk down a large down payment on their own.
Crowdfunding is changing the way capital can be raised for ventures. With the passing of the Jumpstart our Business Startups Act (JOBS Act), the rules on investments are being streamlined. The real estate market is one area where crowdfunding efforts are taking off.
Traditionally, single-family rental homes have been owned by local landlords. But there’s more interest in such properties from groups or individuals far-flung from the Hoosier State who are buying in bulk.
via The Journal Gazette.
Wall Street’s latest trillion-dollar idea involves slicing and dicing debt tied to single-family homes and selling the bonds to investors around the world.That might sound a lot like the activities that at one point set off a global financial crisis. But there is a twist this time. Investment bankers and lawyers are now lining up to finance investors, from big private equity firms to plumbers and dentists moonlighting as landlords, who are buying up foreclosed houses and renting them out.
After nearly five years of planning, a large-scale attempt to turn a big chunk of Detroit into an urban forest is now underway. The purchase of more than 1,500 vacant city-owned lots on the city’s lower east side – a total of more than 140 acres – got final approval from Detroit Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder last week.
via The Atlantic Cities.
A fantastic article that anyone concerned abot real estate and the housing markets should read. - Tim Ballering
From 2009-2012, the top 1% of Americans captured 95% of income gains. Now, as the housing market rebounds, billions of dollars in recovered housing wealth are flowing straight to Wall Street instead of to families and communities. Since spring 2012, just at the time when Blackstone began buying foreclosed homes in bulk, an estimated $88 billion of housing wealth accumulation has gone straight to banks or institutional investors as a result of their residential property holdings, according to an analysis by Tom Dispatch. And it’s a number that’s likely to just keep growing.
via naked capitalism.
Mike Score is quoted as saying
“I can assure you we have a business plan and we don’t have any anxiety about achieving our goals. We’re entrepreneurs, and that’s really our problem to wrestle with. The purpose of the investment is to make the neighborhood more livable and then recover our investment over time, and we’re very confident we can do that.”
via The Atlantic Cities.