foreclosures

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

 

 

Making The Difference: How To Spot A Good Comps Tool

An Effective Comparables Tool Is Invaluable

An indispensable tool for real estate professionals looking to estimate the current market value of a property, comparables have definitely experienced a growth spurt in terms of popularity. But as is the case with pretty much every online service, not all comparables tools are as efficient and accurate as they claim to be. So how do we know how to spot a good one? Here are a number of features to look for in a good comparables tool:

  1. Accurate data and frequent updates – no use in comparing properties sold years ago or looking at transactions with fictional or non-existing sales prices; make sure the platform you’re using for comps has a frequently updated database and that it collects its property records from reliable sources.
  2. Look for advanced filtering options – the very purpose of doing a comps search is to pull out prices paid for recently sold homes similar in size, characteristics, and location with your targeted property in order to determine its estimated market value. But as you already know, property characteristics can differ greatly, even for homes lined up on the same street. Advanced filtering—ranging from number of bedrooms to year built, zoning and more—will enable you to perform a more precise search, while also returning a more accurate result.
  3. You only need arm’s-length transactions for your comparables search – transfers and package deals are not relevant for your search and will most likely alter the estimated value of your property. So look for tools that allow you to choose arm’s-length transactions alone!
  4. User-friendly, personalized search tools – as more and more real estate websites have popped up in the past decade, competitiveness motivated them to create a number of useful, user-friendly tools and features in order to set themselves apart. Some service providers now allow you to perform comps searches by defining a polygon of your choice on a local map; you can even plot your comps results on a map so you can present it to a client afterwards.
  5. Additional services to complement your research. For instance, PropertyShark.com, a real estate research website, complements its offering of comparable services by allowing users to look at extensive property reports for each property included in the comps search, to tap into the area’s foreclosure stats, while also offering accurate data on neighboring school districts, FEMA flood zone maps and more.

So how do you know if a certain comps tool meets all of these conditions? Well, normally you wouldn’t have to do a lot of research, as most online real estate services providers are really proud to offer such complex and user-oriented tools; so they will advertise them heavily! Furthermore, each platform has a description of services you can refer to before deciding whether or not to use it.

How To Adapt To An Increasingly Tech-Driven Industry: Get Mobile

Responsive Website Design Shuffles And Realigns Content To Fit Mobile Screens

No doubt about it: mobile technology helps us save time and increase productivity; and while some industries may not see an immediate need to turn to such technological advancements, savvy real estate agents know better.

With both buyers and sellers now having access to countless ways of researching properties and inspecting the local real estate market, agents often have to step up their game and find new ways to stay ahead. Smartphone and tablets may assist them in this quest, but in order to truly benefit from the mobility these gadgets have to offer, the property information already available must be properly adapted.

Here’s where responsive design steps in, ensuring that a website is optimized for a great deal of devices, operating systems, and browsers, while also retaining all of its design features. Basically, responsive design shuffles and realigns content to fit the screen of the device, so that the user can easily access the most important features of a webpage and find the most relevant information regardless of the screen’s size.

This is exactly what PropertyShark did. Catering to the needs of users looking to get their information on the go, PropertyShark.com has recently updated its website design so that all available property reports can easily adapt to any type of mobile device. With home buyers now being able to research homes on their own, PropertyShark acts as a secret tool for all real estate professionals, offering immediate access to a great deal of property information and instantly boosting an agent’s credibility.

Offering in-depth reports for over 90 million properties around the U.S., PropertyShark provides real estate agents with instant access to wealth of property data, gathered from hundreds of public and proprietary sources. Depending on the area, users can find detailed property characteristics (when the property was developed, who owns it, its exact characteristics, up-to-date sales history, property value estimates, information about current zoning, air rights, and much more) as well as information on title documents, property ownership information, FAR, permits, tax assessment, all neatly gathered in one place.

Same goes for many other PropertyShark services, including its up-to-date foreclosure listings, pre-foreclosures, comparables, a real estate lead generation tool, even REOs for New York City. To find out more about what PropertyShark.com has to offer, check it out via laptop, desktop, smartphone or tablet.

And PropertyShark is merely one of many online providers of real estate services, all betting on the changing scenario of the industry; fortunately, this works in favor of real estate agents, providing them with countless tools meant to help them stay up-to-date at all times, whether in the office or not.

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.

 

Transparency In Real Estate – Key Message at SJREI Mid-Peninsula Meeting

The Three Pillars Of Change

The main message we delivered through our presentation (SJREI021313) at the SJREI (San Jose Real Estate Investors) two days ago was that transparency, or its lack thereof, is a critical catalyst that is preventing the industry from being what it can be, and the real estate professional, agent or investor, from being as efficient and productive as they should be. The underlying force being that a new paradigm shift in real estate is in underway, fueled by consumer insight, powered by technology and new business models.

We stressed and showed how these models will threaten the existence of organizations, large and small, that refuse to notice the oncoming change and tune in to new consumer expectations in how the real estate business is handled, especially online.

This would include real estate auction companies and real estate auction sites, sites that enable REO auctions and real estate government auctions, and organizations dealing in any shape or form with public real estate auctions or foreclosures and distressed property data and listings.

Notwithstanding, regular consumer portals were discussed in the same context, be it publicly traded companies or startup. That the threat is real.

The good news was that the undercurrent also brings with it potentially huge opportunities for those same organizations who tune in to the change and adapt, as many have magnificently done over the years.

Within the context of a session meant to explain to experienced real estate investors what ListedBy.com is, we took the path of focusing on industry concerns that when addressed by platforms and open environments such as ListedBy.com, should result in far greater efficiencies (operational and cost) and productivity for the investor and anyone engaged in the buying and selling of real assets. This, on the premise that all technology we elect to deploy in business is meant to enhance one or the other, in some shape or form.

The paradigm shift would consist of three key pillars with transparency at its core. From these new levels of transparency, the benefits far greater efficiencies and productivity will be drawn. Lack of transparency, today a detriment to economic growth and sales productivity will be replaced with an environment where full transparency is an expectation. Vis:

- Open access to listing data, REO, distressed and regular assets included. Hiding data behind cumbersome registration pages and fees will no longer be an option.
- Actual listing reps featured. The challenge of not being able to instantly see who the true seller or representative is, and not being able to access their contact information, will do more damage to the site or portal exercising such a strategy, than it would do them good.
- Bidding and bidder transparency. Shil bidding (bidding that is used to artificially inflate the price of a certain item), and transparency in being able to see who is bidding and who wins a bid, will become the norm.
Improved cost efficiencies would be delivered in a number of forms including:
- Free auctions
- Free access to listings
- No buyer premiums
- No registration fees
- No brokerage fees

We have a long way before everyone buying and selling real estate realize how deep the benefits of transparency would run within an organization, and how much of a boost in operational and sales productivity such transparency and access to information can drive.

If participant feedback at the session was any indication, the thinking behind ListedBy.com is definitely something more and more real estate professionals will be gravitating to.

Some Event Highlights for Us From The Inman News Real Estate Connect

WOW Inman News was the best that we have seen yet with some great moments and great feedback for ListedBy from users and some of the top industry pros!

Also never a bad thing to get to play a bit in NYC!

Here are a few observations and a few highlights from ListedBy’s CEO: 

Observations:

  • As my esteemed colleague noted, the industry is taking more and more of the home buying process online and seems to be a real drive towards completing transactions online and eliminating the paperwork nonsense that we have dealt with for so long.  This obviously was a big part of why we founded the ListedBy.com site. To allow users to not only research homes online but actually buy homes online, and we are excited to be a part of that for the industry as a whole.  Ideally we would like to incorporate a paperless system into our site that would perhaps make it even easier for our users to not only submit offers on homes online but actually complete the transaction. Who knows, we might have made a partnership for that at this event.=)
  • NYC is enjoyable and one heck of a place to go, but those stories that you hear about the airport at JFK are all true!

Highlights:

  • It was a pleasure for me to get to chat with a couple of industry rockstars in particular that had some sentimental value for me.  Won’t state their names as don’t have authorization to, but one CEO in particular still owns the site where I bought my first Detroit, MI property online that to some extent started the whole idea for creating the ListedBy site. It was great to chat with someone of his caliber for an hour and hear he actually really liked the concept of our site!  Also, great to see a few good friends and partners like Bill from Revestor, the boys from NuOffer, my main man Hector from Trycera (All great companies to check out) and many more.
  • We REALLY got some positive comments from a lot of the industry’s top agents about the website and saw that they really love the ability that ListedBy allows for them to have direct offers from the buyers, which allows them the opportunity to double their commissions by representing both parties.  Also, agents and users all loved the new and improved page for service providers where you can search services for free like you would on a servicemagic.com and other similar websites, but with us of course it is all for real estate management and purchases.
  • We once again had a helicopter to give away to one lucky user. Roger always tries to get it out of the box and fly it around, which sometimes results in the police being called. Luckily I was there to save him from himself!  Another personal note highlight for me is that we got to have a great dinner with a killer view of the city with my big guy Roger. It was nice to have a moment like that with a great business partner and friend to look at where we have come and where we hope to go with the site as we continue to grow.  As we all know, running startups and really any business has ups and downs, and takes a certain level of dedication. So moments like that, events like NAR Orlando and this one are really a big part of what makes it so enjoyable and rewarding, and why I am so thankful to all of you for using the site and allowing us to keeping putting out those 15 hour days to try and get better all the time.

 

 

To clarify, the gentleman noted in the photo there is Hector from Trycera, not Roger.

 

 

 

 

 

 

 

 

 

All in all it was exceptional and we look forward to being a part of many more events like this one in the future and hopefully seeing some of you there also. Who knows, you might win a helicopter, or even better, private dinner with me and Roger!

Stephan Piscano

CEO ListedBy.com

 

 

The 2013 Real Estate Market

Stephan Piscano. CEO and Founder, ListedBy

Interest Rates, Real Estate Auction Companies, Inventory, Inflation, Pricing Predictions

What we think you will see and how we recommend you act on it!

As my real estate mentor always did tell me, “My opinion and a dollar will buy you a cup of coffee.” But for all those who care to listen, here is the way that I see the real estate market as a whole going in 2013, and some strategies that in my humble opinion could benefit our users.

To start, I will give some background to my opinions and what I have done so far to capitalize on the market. At the end of the year in 2011 and the beginning of this year 2012 I told all of my friends, clients and all those who would listen that I strongly believed that the bottom of the market had come and gone and that we would look back at 2012 and ask how much did we capitalize on it.  If you look at the stats and all of the trends, that has proven to be true.  The market nationally has started a slow rebound, and as predicted, the areas hit hardest by the crash such as Las Vegas, NV, and here in California have rebounded the strongest.  With hopes that this would happen, I started investing very heavily in Las Vegas in July 2011 and since that point the market as a whole there is up 37%!  My thought process has remained the same for the market as a whole in 2013 as there are still exceptional buys out there on a national level and in some of these key regions like CA and Las Vegas, and while they may not be the 15% cap rate rental properties that we saw every day for a while, the ROIs are still dramatically better than what you would get in the bank and once again I strongly believe you will see continued upswing in the market in 2013 and beyond.  There are two possibilities for the market that I see that both result in pricing rising:

Possibility #1: The economy crashes hard once again and the fiscal cliff destroys the markets:

This, believe it or not, could result in house prices going dramatically higher, as if this happened it is likely that we would see some form of rapid-inflation which although a slow process would ultimately hit the housing market.  This means house prices would go up not so much because the house is worth more, but rather because the dollar is worth less.  This means that condo you bought for $90K could and will likely someday be worth $1 million just like how a house you bought for $2,600 in 1944 would be worth dramatically more today.  Inflation always happens and it always at some point hits the real estate market.  It is simply a question of how long that will take.  If the economy crashed and we had another dip in the market briefly, it would create another exceptional buying opportunity before inflation kicks in and you can see that exceptional long term growth.

If this happened, the way to capitalize on it is by having as much leverage as possible.  So instead of buying one rental property cash for $200,000, you would want to buy 10 rental properties with 10% down and maximize your leverage so you can pay off the loans with cheap dollars.  It can be a bit in-depth so if you have questions about this email me through my user profile on ListedBy.com and we can go in to some extra stats and detail.

Possibility #2: The economy and the markets get a bit better

This obviously results in having the economy and the market in a better condition, which helps buyers to have the resources needed to purchase, which should continue a slow upswing in home prices and purchases as a whole as we grow.  Also, note that many Americans with foreclosures that happened in 2008 will now have more than 5 yrs since that foreclosure, which for many is enough time to rebound their finances to be able to buy another home, which will also help the market.

As you can see, the stats and the details seem to point towards a strong market recovery regardless of the economy as a whole which is obviously great extra security for all of us who invest in real estate.  I think that it is likely that you will see a combination of the two where the economy stays well and we see some rapid inflation also, which is why in 2013, I will be trying to buy as many units as I can the same way that I did in 2012 hopefully with the same result!