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ListedBy CEO Auctions Off Luxury California Condo For $100 To Drive Traffic, WOW!

SEE THE LISTING AND BID HERE WHILE IT IS STILL SO CHEAP: http://listedby.com/Listing/Details/2466233

 


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Real Estate Investors From All Countries and regions Flock To This Location…

As one of the most moribund housing markets in Europe, Spain has become a magnet for global bargain hunters. Real estate prices are down as much as 50 percent from their peak during a housing bubble, and investors from Asia to the United States and Britain are flocking to Spain to try to catch the uptick.

British Airways flights to Madrid are packed with London-based real estate executives. The hedge fund Baupost is buying shopping centers, Goldman Sachs and Blackstone are buying apartments in Madrid, and Paulson & Company and George Soros’s fund are anchor investors in a publicly listed Spanish real estate investment vehicle. Kohlberg Kravis Roberts just bought a stake in a Spanish amusement park complex. Big-name private equity firms and banks are teaming up with and competing against one another on huge loan portfolios with names like Project Hercules and Project Octopus.

“It’s surreal,” said Dilip Khullar, a 25-year veteran of Spanish real estate investing and director of Cadena, an investment fund. “One day it’s the worst place in the world to buy real estate and the next, it’s the best.”

The end of Spain’s real estate boom left unfinished projects like chalets at Cala Romantica on the island of Majorca.Enrique Calvo/ReutersThe end of Spain’s real estate boom left unfinished projects like chalets at Cala Romantica on the island of Majorca.

Low interest rates, set by the European Central Bank to help buoy Germany’s market, helped to fuel Spain’s housing boom. Real estate developers teamed up with local savings banks to borrow and build over and over again. “We were a train going 200 kilometers an hour and it was hard to stop,” said Jaime Pascual-Sanchiz de la Serna, executive director at Aguirre Newman, a leading real estate consulting firm. Construction reached a staggering 12 percent of gross domestic product, more than double the proportion in Britain or France.

When the bubble burst in 2008, Spain became toxic. “Nobody wanted to invest a penny in real estate,” said Mr. Pascual-Sanchiz de la Serna. “Spain was overbuilt and it was going to take 10 years to work through.”

It hasn’t taken that long.

The real estate market started to revive in 2013. Government reforms, including a relaxation of labor laws and stricter rules for banks related to accounting for bad real estate, meant that banks could no longer ignore the assets on their balance sheets. Once the banks had to hold more capital — in some cases drastically more — they started to think it was better to sell, analysts and bankers said.

Spain’s “bad bank,” called Sareb, formed in 2012 with the real estate assets of the country’s bailed-out banks, started to close deals. Separately, last July, Blackstone bought 1,860 apartments for 125.5 million euros, then about $166 million, and in August, Goldman bought a block of public housing in central Madrid. This combination of deals set a floor price, analysts said.

The recovery is still nascent. About €5 billion worth of real estate transactions took place last year, according to the consulting firm CBRE Spain — more than double the amount of the previous year but still small compared with the €166 billion in commercial real estate deals made in Europe last year. At the peak, Spain issued 120,000 mortgages a quarter; in the fourth quarter of 2013, the figure was 15,000. Fitch Ratings recently issued a report saying that real estate prices would continue to fall through 2014, not rebounding until 2015.

A housing block in Cancelada, in southern Spain. Many such assets from bailed-out banks went to a so-called bad bank, Sareb, which is gradually selling them off.Jon Nazca/ReutersA housing block in Cancelada, in southern Spain. Many such assets from bailed-out banks went to a so-called bad bank, Sareb, which is gradually selling them off.

And Spain’s economy continues to struggle. The unemployment rate is 26 percent, and growth is estimated to be about 1 percent this year. The government contends things are better, said Pedro Gonzalez, a former shopkeeper who now drives a taxi, but the people haven’t seen it. “There are no jobs,” he added.

But that looks like an opportunity to investors who believe the market will truly take off and want to get in before it does.

“It’s crazy the number of investors coming in,” said Fernando Acuña, co-founder of Aura, a start-up real estate advisory firm in Spain, as he toggled between multiple screens dissecting data in the residential real estate market and showing the uptick in Google searches for “comprar piso” — “buy an apartment” — in his bustling office on Madrid’s fashionable Almirante Street.

Small firms like Mr. Acuña’s, midsize investment banks in Spain and global banks in London are buzzing with investors looking for different ways to play the real estate market, by buying apartments or office buildings, scooping up loans from Sareb or the banks themselves, creating pools of capital to buy real estate assets or buying servicing platforms, which give the private equity firms that own them the ability to manage their assets as well as critical market intelligence.

Belén Romana, chairwoman of Sareb, said the number of investors — around 50 — who turned up for the first auctions surprised her. They were aggressive, she said. “It was early and they thought they could make a killing.” They pushed her to move fast and do deals. “They wanted to sit in a dark room and do a bilateral deal,” she said. She refused. Auction processes were put in place, with data rooms for deal teams and deadlines for nonbinding and binding deals.

In 2013, Sareb sold €1.5 billion of the €51 billion in assets it was created to sell. Of the €51 billion, about 20 percent is real estate and 80 percent are loans. Ms. Romana said the agency bought the assets at discounts of 40 percent to 80 percent.

Unfinished homes in Cancelada, Spain. The nation’s economy continues to struggle, with the unemployment rate at 26 percent.Jon Nazca/ReutersUnfinished homes in Cancelada, Spain. The nation’s economy continues to struggle, with the unemployment rate at 26 percent.

There is a lot to sell. Sareb aims to sell nearly 10,500 assets this year, and the top six Spanish banks hold an additional €159 billion worth of real estate and development loans, according to a Goldman Sachs research report.

Catalunya Bank has just received bids for Project Hercules, a €6.95 billion portfolio of residential home loans, 43 percent of which are nonperforming, or overdue by at least 90 days. The bidders are a who’s who of private equity: Blackstone and TPG are competing against teams of Goldman Sachs and Cerberus; Apollo and Centerbridge; and Deutsche Bank, Pimco and Marathon, according to a person briefed on the sale.

Commerzbank recently sold €4.4 billion of loans backed by commercial real estate in a separate deal called Project Octopus, in which Lone Star and JPMorgan Chase beat out Blackstone and Deutsche Bank. The price was not disclosed but market participants said the sale was made at close to a 30 percent discount.

In February, a Socimi, or Spanish real estate investment trust, came to market, raising $547 million. Two weeks later, Hispania Activos, another pool of capital, raised $763 million, with Paulson & Company, George Soros’s Quantum fund and Moore Capital as anchor investors.

Before Grupo Azora, the Spanish real estate company behind Hispania, decided in the early fall on an initial public offering, some of the bankers its executives spoke with wondered whether there would be ample demand. But by the time the deal was marketed, investors were jockeying to get a piece of the action.

“We generated demand of $2.3 billion,” said Juan del Rivero, chairman of Grupo Azora and a former Goldman Sachs partner. “In my 30 years of experience in investment banking, I haven’t seen a lot of books like that,” he said, referring to the process in which investment bankers take orders for a deal before pricing it.

More Socimis are in the pipeline, with at least one set to raise more than €1 billion.

Already the deal landscape is changing. While many investors want trophy commercial real estate assets, extremely few are for sale in prime areas of Madrid and Barcelona. Investors who hoped for 20 percent internal rates of return are now expecting 12 percent to 15 percent, and shifting their focus to residential properties, analysts said.

That shift suits Mr. Acuña of Aura very well. He has ridden the boom and bust of the real estate cycle and is gearing up for the next boom.

In 2006, Deutsche Bank hired him to build its mortgage business. When the market collapsed, he added the title of head of collections. In 2009, he started a business trying to sell repossessed houses for the banks and formed a database with 450,000 properties from banks and more than a million from private clients. When investors started calling and asked him for valuations of land, houses, buildings and portfolios, he started Aura to advise them and also to invest in the sector. Its website is in English because, he said, “all my clients are in Mayfair.”

“I think 2014 is the year we will see a lot of transactions,” he added.

Many worry that the competition for some assets and excess liquidity is driving prices higher.

“People are starting to overpay on certain assets,” said one investment banker who spoke on the condition of anonymity because he works with many of the funds active in the market. “There’s pressure from investment committees in London to do deals.”

One private equity executive said a recent auction for a mediocre office building attracted 30 bids. His company’s bid — which he said was fully priced — did not even make it past the first round.

Are prices too high? “That’s the million-dollar question,” said Javier Martinez-Piqueras, co-head of equity capital markets at UBS. “Actually, it’s the billion-dollar question.”

 

REFERENCE THE NEW YORK TIMES PUBLICATION


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Exceptional Video With William Shatner EquityBuild And Real Estate Investing Strategies

These Guys Are Just AMAZING and you can actually also read their eBook HERE if you have not already for FREE!  – -

DOWNLOAD REAL ESTATE INVESTING EBOOK FROM EquityBuild!

 

The Best Of Investing Radio Show From January 11th CEO of ListedBy.com Stephan Piscano

Best of Investing Radio Show January 11, 2014 guest Stephan Piscano

Stephan Piscano reviews the benefits of the site and a lot of exciting updates on the real estate industry

 

 

Online Real Estate Auction Sites Traffic From February

It seems that there is a little bit of competition heating up in the online real estate auction sites battle for the top spot, according to www.compete.com stats.  Newcomer ListedBy.com entered the race for the top spot with site record Web traffic for February 2013 with more than 50,000 visitors coming to the site during the month, putting it slightly behind direct competing online real estate auction site www.bid4assets.com and ahead of other similar real estate sites such as realtown.com and others.

The month also saw industry leader www.auction.com remain at the top of the pack with nearly 800,000 visitors for the month according to the site but the strong display of traffic for ListedBy.com is a great thing for a site that has still only been around less than a year and has little resources by comparison to the billion dollar entity such as auction.com.

In other news for real estate auction sites, Hubzu.com, formerly gohoming.com, has presented itself as a major competitor in the sector with more than 200,000 visitors.

The ListedBy.com brand that went live no more than 11 months ago on May 2nd 2012 has quickly shown the industry that there is a new way to present the online real estate model to users with all of the users being able to use the site and the marketplace completely free unlike all of the competing auction sites noted here which charge insertion fees and commissions after the transaction.

Below are the official numbers that were reported by compete.com for traffic in February 2013 including all the major sites in the real estate auction segment. As always, thank you to all the loyal users that are helping ListedBy.com grow as the first completely free online real estate marketplace and social network with live bidding auctions.

  • WWW.TRULIA.COM – 11,000,000 VISITORS
  • WWW.AUCTION.COM – 790,000 VISITORS
  • WWW.HUBZU.COM – 298,000 VISITORS
  • WWW.BID4ASSETS.COM – 64,000 VISITORS
  • WWW.LISTEDBY.COM – 52,000 VISITORS
  • WWW.REALTOWN.COM – 27,000 VISITORS

These figures are off of projections and estimates based off of compete.com stats.

ListedBy On A Mission To Shake Things Up

AGBeat’s Tara Steele covered it and we couldn’t have explained it better ourselves. The momentum and involvement on ListedBy is moving to new heights each week. Traffic is on track to hit 40,000 unique visitors this month or more, and Realtors, consumers and real estate investors are engaging more and more with the system’s Best Offer and auction tools.

From AG Beat:

ListedBy auction tool focuses on transparency, disruption

by in Housing News  

 

Online Real Estate Auctions – When to Dive and When to Skip

Online real estate auction is emerging as the next power tool in real estate marketing and sales. 58 billion in sales in 2011 and projections by NAR that one out of every five transactions will be in auction by 2014-15 sets the tone for the years to come.

The sweet and short of it is that because auction buyers are typically cash or finance-ready, and because online auctions reach buyers across the U.S. and the world, deals can be reached far more quickly. So in essence, REALTORS® and real estate investors who participate in online auctions benefit from being in a position to buy and sell more real estate, in less time.

All Real Estate Auction Platforms Are Not Created Equal

As a real estate professional, you’re constantly looking for faster, better and cheaper ways to conduct business. Traditional online auction platforms and services have typically been cumbersome and time consuming to participate in, not to mention the high cost imposed on both sellers and buyers. All of these can be key reasons why auction as a strategy could not realistically make it to many REALTOR® listing presentations.

Simple Works – The world of auctions has evolved, and consumers everywhere have become familiar and essentially are now more comfortable with auction buying or selling through marketplaces like eBay and others that have made it extremely easy. The auction process is no longer alien to the masses, and it is only realistic to expect a pick-up in auction activity in real estate as well. This move has already begun and continues to gain momentum.

Look for an advanced real estate online auction platform that allows you to join and participate very easily. A simple registration process, simple to use tools and a 100 percent online environment is a great start. Cumbersome and demanding registrations, advance commitments, add-on offline service components and services might be your early signs to skip this dive. The world has moved on, so should you.

No Fee Environments – The days of getting charged through the nose to list a property in auction, or to participate in one, are over. They are gone. This is your next big warning to skip this dive too. Buyers who have been used to paying between one and ten percent (yes you read that right) on the value of their purchase are now more likely to engage – and perhaps pay a bit of a premium for a property in a free environment, than to dish out an extra eight percentage points to the organization that is simply facilitating the auction. New models such as ListedBy.com have done away with all fees for both buyers and sellers, which stands to accelerate the adoption of online auctions as a whole, and optimize property values as more dollars become available to go towards the value of the asset than corporate cash registers.

Transparency – Does the platform you are looking into allow you to see who is bidding on a property and what the price levels are? Can you see a profile and online consumer ratings of all the participants? A transparent online auction marketplace should give every participant equal weight and chance, and a sense of comfort and confidence. Alternatively, it’s a capital SKIP!

Networking and Lead Management – One last item we should cover in the context of this article is whether the platform you are considering is strictly a short term buy/sell solution, or a long term environment where you can strategically position yourself to grow your brand, run your real estate marketing, cultivate and manage a solid business network, and establish yourself as an expert in the online auction arena. In today’s day and age, a truly effective online real estate auction platform should put such tools at your fingertips, and for free as well.

Now you can dive with confidence.