distressed real estate

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

 

 

When Property Advertising Gets Aggressive – Compliment or Curse?

Man fixing the knot of his striped blue tie.

Compliment Well Received. Problem Solved.

You know a site is hot when advertisers try to push the envelope. They run the same property ad multiple times so they’re always at the top of the views. Many also hire inexpensive overseas labour to stay on top of their listings and ensure they flood each site with their properties each day. Mainly those that generate the best and most leads.

New York got a special treatment from Craigslist a few years back, if you recall. It became the first city where Craigslist real estate posters would have to pay to advertise their listings. A reasonable and smart play by Craigslist, since listing duplication in New York got unbearable.

While the practice spoke tons to Craigslist’s power to generate leads, it affected user experience and annoyed honest brokers and agent – and consumers. Well, that happily turned into a new revenue stream for Craigslist. A nice turn of events indeed.

ListedBy.com today turned on a new tool that enables its admin staff to not only halt user accounts that push the envelope on the site, but also to delete all previously added listings by the entity. REO auctions, public real estate auctions and otherwise.

Since ListedBy is a free site, we opted to go this route to neutralize all the effort and expense the user goes through to create their account and post and re-post listings, than to start charging honest users for posting.

That’s how we chose to go about it and it seems to be working.

Shrewd advertiser #1 down, a few others to go. Thanks for the compliments anyhow.

Traffic to ListedBy hit 35,000 unique visitors in February and is on track to hit nearly 50,000 this month.  Anyone can and is invited to add their listings for free. Just start a free profile then click on Sell on the blue menu bar at the top of the page to add listings.

On behalf of our management team, I want to take this opportunity to thank all our loyal users and industry followers for their support as we too push the envelope in real estate.  But in a good way.

The Making Of A Millionaire – How To Benefit From Public Real Estate Auctions

You Eat An Elephant One Bit At A Time

You eat an elephant one bite at a time.

Often, having a clear vision and the courage to start working towards an opportunity is what stands between man and his or her ultimate goal. With a little bit of study and appetite for some risk, the goal may in fact be closer than one might think.

The first order of business is to spot the opportunity. The next order of business is to remove anyone from sight who’s job seems to discourage us from moving forward. This is frequently the reason why most people freeze. In his famous The Law of Success in 16 Lessons book, the success bible, Napoleon Hill specifically discusses how you must keep your chief aim shielded from others who are likely to challenge or resist it. Even your spouse. Take this as law in achieving the success that you want, even though it is contrary to all the modern guru teachings that you must publish your goals far and wide so you may be more committed to achieving them.

In real estate, an opportunity of a lifetime came to those who saw a buying window when everyone ran the other way in 2008, 2009 and even up until last year. Those who made the move and acquired as much property as they could, boarded or not, with spouse approval or not, are on a different plane now. We all know where these investments stand today. Up some 20-25 percent in the past year alone, in many states and cities across the US. They hopped on the Web and onto online auction sites to grab REO auctions, government real estate auctions, residential real estate auctions, commercial real estate auctions, you name it. Some flipped them right away while others rehabbed and held the assets for rental income with high annual cash on cash returns unlike we’ve seen for decades.

The biggest complaint circling the sector today is lack of inventory, especially distressed assets. Whether that’s in Detroit, Las Vegas or any other market.

The next time I come across a hot deal in Detroit or otherwise, boarded or not, shabby or not, I’m jumping on it. That’s just what I did earlier today, when opportunity presented itself. I bid on five residential properties in Detroit on ListedBy.com, going for just tens or mere hundreds of dollars to anyone willing to take on just a few thousand dollars of back dues taxes. A great deal if you ask me. At worst, the land will always be there for me or my kids to farm someday. Each will have their profiting strategy. Some will resell the assets immediately for a bit of profit, taxes still unpaid. Others will hold till values increase, then sell at that time, still passing due taxes to the next investor. Yet others might pay due taxes in order to obtain title insurance, rehab the properties and rent them for regular cash flow. That is, if the neighborhood and overall conditions are adequate, an insurance provider is willing to provide the service in the area, and the risk of another round of vandalism of the property has been well considered. Risks are out there and professional advice and due diligence on any investment is always necessary.

But first I must win those bids. Some astute investors seem to have spotted the same properties. Until then, I’ll keep scouting the site for more. Here great deals still do come by.

I also like it here not just because of my obvious bias towards ListedBy, but because I also don’t need to pay registration and technology fees like on most other auction sites. Nor do I have to contend with buyer premiums like most everywhere else. Here it’s all free. So each bite I take at my goal, goes further. In English? More dollars in my pocket to go towards buying more assets (with or without spousal approval), instead of handing them to the auctioneer.

There you have it. That’s one of my paths. I’m pulling ahead in the game of real estate just one small bite at a time, until the elephant is in the bag.

 

 

 

 

The Freeway To Listing Data – Foreclosures, Auctions And Otherwise

Open Access To Data and Buyer/Seller Information

What is mind boggling is that we as an industry have struggled for years trying to figure how to move distressed inventory. Mind boggling because we have consistently hid the data behind cumbersome registration pages and access fees, and charged huge buyer premiums at auctions. To think that these are all strategies designed to move inventory is somewhat hard to believe. Open access rather, should be the path.

To top it all, many consumer portals and sites have made it tough for buyers to connect with listing agents or sellers, by giving preferred placement to their own internal agents next to the listing, if that’s their business model. Others featured and continue to feature alternative agents based on a paid advertising model, in the process keeping the true representing agent who knows the seller and the property best, and can answer questions more swiftly and accurately, at bay and harder to reach.

Such and other practices have either delayed or outright derailed potential transactions, and to this day continue to hinder wider, more efficient buyer participation so the assimilation of inventory may proceed at a more healthy pace.

We’re excited to announce that we have unlocked access to all listings on ListedBy, specifically because giving real estate buyers and sellers immediate and open access to listings and to each others’ contact information is core to ListedBy’s vision for the site and the industry as a whole. We see this as becoming the norm for all real estate property portals and real estate auction companies.

As always, we appreciate our users’ feedback and suggestions. Giving everyone instant access to all listings on ListedBy.com once again is the results of your valued input. Now anyone can research MLS listings across the country, residential and commercial. The same goes for all distressed properties including REO auctions, government real estate auctions, residential real estate auctions, commercial real estate auctions and all other public real estate auctions and Buy Now/Best Offer listings that are active on ListedBy.com.

 

Online Real Estate Auctions – ListedBy KNOWLEDGE CENTRE – How Chicago’s REALTOR® Cassandra Barber Achieves Consistent Success

Cassandra Barber
GRI, SFR
www.realestateauctions.com
Chicago, IL
51-200 employees

Online real estate auctions marketplace ListedBy recently caught up with Cassandra Barber, GRI, SFR to find out the main secret behind her success. Here is our interview:

LB: Thank you very much for your time. We know that many ListedBy. com members and others will benefit greatly from your experience. If you were to share your number one secret to success, what would that be?

R: There is not a secret to my success – just a lot of hard work.

LB: What is/are the main challenge(s) that you face in pushing through with this advice in your own business? How do you overcome them?

R: Staying focused and not allowing distractions to keep me from my goals. Real Estate is an industry that if you allow the “noise” of the next best practice to distract you, you will forever be re-inventing yourself.

When you visualize where you want to be in your business, answer the questions what is it going to take to accomplish that, and stay focused on those answers you will realize your goals.

LB: What is the main downside for not applying this principle?

R: The biggest downside is not reaching your full potential by not accomplishing the goals that you set for your business.

LB: How can listing or buying property using free online real estate auctions or ‘Best Offer’ technology on ListedBy or other platforms impact
your business?

R: I realized auctions provide another tool that REALTORS can offer their clients and of course every circumstance will be different. The market dictates that we must think outside the box and auctions provide an avenue for quick and productive results.

LB: Anything else you would like to share?

R: Auctions may not be for everyone or every home, but agents should consider auctions as a valuable option and tool. The National Assoc. of REALTORS convention this year featured a session on auctions and for me that speaks volume to the value that auctions will have in our market place now and in the future.

LB: Once again, thank you very much for your contribution.

 

About REA: RealEstateAuctions.com (REA) is a leader in U.S. real estate auction sales. Our team of auction specialists has closed more than 8,000 sales of all types all over the country with a huge list of client partners, including HUD, FDIC, Fannie Mae, Freddie Mac, pension funds and a myriad of other corporations, institutions, developers and private owners located
throughout the U.S.

Leaders and Laggards – How Industry Pioneers are Using Online Real Estate Auctions to Distance Themselves

Highly successful real estate professionals will tell you that one of their secrets is constantly seeking better, faster and cheaper ways to do things.

When the Internet came about, the pioneers got onto email before everyone else. Eventually, the same group went online with their Web pages. From there, they were first to start their own websites and adopt other technologies way before the laggards got on board. If ever. Listing syndication came about. Thousands sat back, debated things or fought hard to maintain the status quo (many still do to this day). Meanwhile the winners began to distribute their listings widely on the Internet and reaped the benefits of exponential brand exposure and lead generation.

You get the point. Paperless transaction tools, telecommuting, social media and the virtual office brokerage faced the same skepticism from the majority or, shall we say, the followers, while the leaders took the bull by the horns and blazed through. This is how winners win. Believe or not, some agents still do not have their own website and many have to be educated on why they should look at their email more frequently!

On to the next big thing. Online real estate auction.

First let’s get one thing cleared. Auction does not mean having to price a property at a dollar and hoping it sells for half a million. There are a number of online real estate auction strategies that we’ll go over in future articles. But for the purpose of this piece, think of online auction as a process that allows you to market a listing starting at a minimum acceptable price, and marketing it so it is bid up to its optimal market value. If you have been in this profession long enough, you would have either used this pricing strategy or heard of others using it, but in the traditional fashion. Price a property attractively, draw in buyers, then create a bidding war. It works.

Fast forward to the future. New online real estate auction platforms allow you to replicate the excitement and benefits of this strategy but far more easily. It also helps you to reach buyers from around the country and the world. Without costing you a cent. Review, accept, reject and counter offers with a click of the mouse. Things don’t get any easier.

Another great benefit of tapping real estate online auctions is that auction as a selling method inherently narrows the pool to buyers who are finance-ready. To bid on a property in auction, buyers or their buyers’ agents typically must be ready to move forward, if theirs is the winning bid. This alone can significantly accelerate the sales process, and takes care of the financing subject headache in advance.

Try listing a property on ListedBy.com. The membership and traffic on the site continue to reach new proportions each month, as more professionals discover the platform. Unlike other real estate auction sites, ListedBy is completely free of charge and does not charge a buyer’s premium or a buyer’s fee. ‘The old’ auction model is being re-invented, with both buyers and sellers coming together to negotiate and close deals in a completely free, transparent and highly advanced environment.

While this may create a headache for the traditional real estate auction industry, for industry pioneers, and those who have come to expect hefty fees to buy or sell at auction, it’s a breath of a fresh air.

Five Rules for Buying a Foreclosure or Short Sale

Some analysts say the rebound has begun and home prices may rise by the end of 2012. This means now may be buyers’ last chance to take advantage of affordable properties and low interest rates. If you want to score a bargain before the housing market recovers, you’ll need to follow a few rules to invest with certainty.

Rule 1: Position yourself for success
Before starting your search, get preapproved for a mortgage. Work with an experienced real estate agent who can help guide you through the daunting sea of foreclosures and short sales.

Rule 2: Do your research
Work with your agent to ensure the contract requires any delinquent taxes, liens or assessments will be paid prior to you taking ownership of the property.

Rule 3: Always get a home inspection
An inspector will visually examine the condition of the home’s roof, attic and insulation, foundation, basement and structural components, as well as interior plumbing and electrical systems. Be sure to find an ASHI-Certified Inspector (ACI) to ensure your inspector is experienced, as many states have minimal licensing requirements.

Rule 4: Budget for repairs
After receiving your inspection report, you can estimate costs associated with necessary repairs, maintenance or energy-efficient improvements.

Rule 5: Assess the neighborhood
Location should be a top consideration when purchasing real estate.

Source: ARA