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Property Asset Management: Property Investment Strategy – Part One of Four

Property Asset Management: Property Investment Strategy – Part One of Four

Every real estate investment’s performance is composed of a mix of equity-like and debt-like behaviors. From a Property Asset Management standpoint, investment funding is composed of both private and public equity. It is the correlation of the debt and equity components to the funding source that enables us to define the four primary real estate investment structures.

Consider the case of a private real estate equity asset leased to a single credit tenant with a long-term triple-net lease. The payments on the lease resemble the fixed payments associated with a bond, not with equity. In-fact the value of the triple-net leased asset fluctuates in step with the same factors that influence the value of a bond or a mortgage, such as interest rate movements, inflation, and the credit worthiness of the tenant.

At the other extreme, an equity position in an empty, speculative multi-tenant property with short-term leases is driven almost entirely by equity forces. The building’s value from an equity tranche perspective is a function of supply and demand for space in a given market, at a given time. In-fact, the debt-to-equity composition for a property investment can change with time.

By way of illustration, take the triple-net lease in the first example. As the lease ages and approaches its expiration date, the property takes on a greater component of equity-like behavior and less of a component of debt-like behavior; and at the end of the triple-net lease, the property value is only affected by equity forces.

Commercial mortgages are utilized in Property Asset Management to carve out the debt-like behavior from the property investment. For example, the commercial mortgage-backed securities market carves up the cash flows from pools of mortgages to produce bond-like characteristics in the top-level tranches and more equity like cash-flow characteristics in subordinate layers. As property investment funding is composed of both private and public equity, investors typically define these debt and equity tranches with four primary real estate investment structures:

Equity:

* Private Commercial Real Estate Equity – held as individual assets

* Public Real Estate Equity – structured as Property Funds or Real Estate Investment Trust

Debt:

* Private Commercial Real Estate Debt – held as loans or commercial mortgages held in funds

* Public Commercial Real Estate Debt – structured as Commercial Mortgage-Backed Securities

These investment structures react to a common set of influences as well as to unique influences specific to each individual structure. It is the analysis of debt and equity components of each structure that enables property asset managers and their agents to effectively structure the portfolio to meet specific investment goals. In the next two articles, we discuss the debt and equity components for several different property investment objectives.…

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Investment Portfolio Strategies – What You Need to Know! – 2011 and Beyond

Investment Portfolio Strategies – What You Need to Know! – 2011 and Beyond

The world of investment and finance is dynamic. After the recent credit crunch, portfolio managers have become increasingly aware of the need to review and change strategies to match the demands of today and the future. A portfolio consisting of stocks, mutual funds and bonds for example may not be the best mix today. Knowing the right strategies to employ in this highly unpredictable global financial environment is key not only to the portfolio manager but also their clients not forgetting other individuals and interested parties.

Over the years, investors have concentrated on having a portfolio diversified with stocks and bonds with a little percentage higher in favour of bonds. This is because investors saw stocks to fluctuate more than bonds; hence there was wisdom in holding such a balance in a portfolio. If the prices of commodities such as gold, oil, diamond, Ivory, etc continue to rise as being observed now, then inflation together with interest rates will also rise forcing bond prices to fall. The trend of commodity price increases shows no signs of coming down anytime soon.

For these reasons, it is relevant for investors in stocks to also hold a diversified stock that include stocks from other countries (international stocks). For the years ahead, the best portfolio will also include stocks from the oil and gas sectors including real estate not to mention gold- with little reservation. It is also important for investors to reduce their investments in bonds or invest in only short-term and medium term bonds whilst avoiding the investment of long-term bond funds. It will also be beneficial for investors to also hold portfolio that includes some carefully selected fixed and floating money make instruments.

It is also important also to note that investors with reasonably small amount of money to invest should avoid stocks since the dividends that may be realize from this kind of decision may not be enough to support an already bad financial circumstances. Also investors who will expect a return or profit every year should also avoid stocks since dividend payments and capital gains may not be guaranteed. This is because dividend payment is largely at the discretion of the board of directors who may decide to announce the use of the profits generated for more income generation activities supposedly in favour of the company.

If you really want value for money concerning your investments, then a portfolio strategy that employs the commodities above is the way forward for 2011 and the future. These will provide you with the balance to withstand all the economic turbulence.…

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Palm Beach Florida Real Estate and Palm Beach Investment Properties

Palm Beach Florida Real Estate and Palm Beach Investment Properties

Palm Beach is a fully developed community, world-renowned for its extraordinary beauty, quality of life and small-town character. It is one of the most prestigious towns in South Florida. Henry Flagler founded the town in 1911. He was one of the founder of Standard Oil.

At only 14 miles long, The island of Palm beach offers amazing spaces and places. The Town offers fantastic sport fishing, exceptional golfing, the most exclusive country clubs and some of the world’s best boating. Nearby finds a private airfield for your plane and elegant horse farms… Polo anyone?

Even with such world class amenities Palm Beach never loses its intimate, community feel. The glorious weather alone is reason to live here! Wouldn’t you rather be soaking up the sun than shivering in the snow!

Palm Beach is considered an island. Beautiful beaches and the historic Par 3 give the island the feel that you are taking a vacation. The Town also has some famous residents. One of these famous residents include Donald Trump.

The Town’s Real Estate is some of the most sought after property in the world. The luxurious properties of this amazing island are owned by some of the most prestigious people in the world. These properties can be an investment as they tend to keep their value when the economy takes a down turn.

The Island Town has some of the most beautiful homes in the world. The island is not over-crowded so there is plenty of room for new residents.

If you want to know more about the luxurious properties in the Town Of Palm Beach Florida, consider talking to an expert like Susan Polan. She’s an expert in Palm Beach properties. If you are looking to buy a house in this prestigious town please go to her site and contact her.…

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Three Proven Land Investment Strategies

Three Proven Land Investment Strategies

Investing in land is one of the oldest forms of investment. It has a history that literally goes back thousands of it’s still relevant today. With an investment in land you can make a down payment on a piece of property and watch it increase in value as the years pass. It’s not a get-rich-quick type of plan by any means, but it will allow you to safely park your money for long-term growth. Investing in land is not complicated; anyone can do it. You just need to plan a conservative strategy and then follow through with it. There are many such strategies you could use but we’ll take a look at three possibilities.

One simple land investment strategy involves purchasing a piece of real estate and making improvements to it. There are many different variations on this theme. In one example, a person could purchase a piece of land and clear the brush and rocks and use it for farmland. The land could be profitable each year as the owner/farmer grows produce and raises livestock. Such an investment could produce a lifetime of income and even be passed on to subsequent generations for further farm use.

Another simple land investment strategy could involve purchasing a piece of commercial real estate. The commercial real estate could be apartment buildings, office space, a manufacturing facility, a warehouse or any other type of real estate that could be rented to a tenant. The great thing about this strategy is that the owner only needs to put down a small deposit (usually around 20 percent) and takes out a note for the remainder. The monthly rental receipts are then used to pay down the note. Eventually, the tenants pay down the note in full for the owner and the monthly rental receipts become pure profit.

Yet another very simple land investment strategy is to purchase a foreclosure property to sell for a profit. In such a scenario the owners are unable to make the payments and the bank is making preparations to repossess the property. These homes can usually be quickly purchased for as much as 20 percent below value and then resold for a profit. An industrious investor can even make a few targeted improvements that can dramatically increase the value, resulting in greater profits.…

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Don’t Be One of Those Penny Stock Investment Experts

Don’t Be One of Those Penny Stock Investment Experts

Of all of the questions that I receive, there is one question that seems to be more plentiful than other. The question is this: “What penny stocks should I invest in?” There must be a lot of penny stock investment experts running around because somebody needs to tell all of these young, inexperienced investors the truth.

I guess for today, that will be me so here it is. Penny stocks are dangerous. In fact, very dangerous and although there are a lot of people who act like penny stock investment is easy, that is far from true.

First, you aren’t going to make any money until you change your way of thinking before you start investing. We have learned in our everyday life to get products as cheaply as possible. If you’re like me, you love to play the haggling game with cars. I shop all dealerships in the area and play each together. Lower price means better deal.

While that does transfer to the stock market, penny stock investment isn’t successful if you buy the lowest price stock. It is only successful if you buy a HIGH QUALITY stock at a low price. Get out of the mindset that low price means better value. 10 shares of Apple priced at $175 per share is a much better value than 500 shares of Sirius XM radio. We don’t look at price until we look at the quality of the company.

Next, penny stock investment is dangerous because of the risk/reward. If you buy 100 shares of Chevron, you can be relatively sure that the worst that will happen is a temporary dip in the price of the stock. As long as you’re patient, you will make money or at least not have a very large loss. Penny stocks are different. If a penny stock drops in value, it may never come back. The company may go out of business and your money may be lost.

So look at the risk/reward. Chevron is low risk and at least medium reward. Penny stocks are high risk and low reward since penny stocks tend to stay penny stocks.

Finally, it’s difficult to evaluate penny stocks. Often, they don’t have positive cash flow, a lot of debt, and very little longevity. Is the debt they incurred to start up going to result in a healthy company or will the debt cripple them? Will they ever have a profitable product or service or will they, one day, suddenly close their doors taking your money with them? The pros often take chances with these questions. Are you willing to lose your entire investment?

Is penny stock investment worth your time? It may be but before you become a penny stock investment expert, you should be an expert stock picker in high quality names. Don’t look at penny stocks until you have a healthy portfolio of blue chip stocks.…

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Investment Capital Costs

Investment Capital Costs

Investment capital always comes at a very high price as you need to provide a substantial amount of equity to your angel investor. You can ameliorate this cost by owning a business that is already in operation or a business that is considered to be low risk. We will continue to discuss these issues throughout the rest of the article.

Writing a good business plan is one of the most important part of raising capital. When writing your business plan, you should always include a yearly budget as part your financial forecasts. If you are unfamiliar with how to write a business plan then it may be in your best interest to hire a company that can assist you in this process while concurrently showcasing the investment capital cost that will be incurred by your company.

Capital always comes at a cost. There many benefits to working with private equity firms despite the fact that they provide capital at a very high cost. Equity will almost always be required as a negotiating tool. Royalty based financing can it help you get the capital that you need without having to give up too much of your equity. Capital that is obtained through a hard money mortgage is usually extremely expensive although you will not have to give up equity in order to receive this type of investment. Hard money mortgages typically carry a term of one year to two years at most and are usually secured by real estate or tangible equipment.

More and more angel investors are investing in hard money mortgages due to the fact that there is an immediate upfront fee paid to them for providing capital. You should thoroughly showcase the tangible assets that are held by your business that can be liquidated if your business is not as planned. It is very important that you have an extensive amount of industry experience as it relates to the business that you intend to start or expand. In all transactions that are related to raising new capital for your business going to need to have a business plan. The current economic climate has made lending very difficult. Debt capital allows you to own 100% of your business at all times.

Many small business investment companies are not directly looking to take a very large percentage of your business. A breakdown of investment funds should be provided to potential funding sources within your business plan. As an alternative to angel investors or venture capital, a SBIC is able to provide you with both loans and equity as it relates to your business expanding.…

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Positive Cash Flow Properties And Your Tax

Positive Cash Flow Properties And Your Tax

When investing in any income producing assets, it’s perfectly allowable to make a claim for any up-front, ongoing and selling costs of that item and when it comes to properties, it is certainly a helpful bonus to the landlord.

When you buy a property, any income you receive from that in terms of rent (or as a Wrappee payment) will be tacked onto any other income you earn although you are allowed to deduct any costs you may have for holding the property before you are charged any extra tax on it – what is left over then becomes your taxable income.

There are several different categories that determine what and when you can claim some tax benefit.

Capital Costs

Capital Costs are the first type of cost that you will run into when you buy a property – and the biggest. These include:

Stamp duty you have paid to the government on the purchase price which varies in each state.

Any pest or building inspections

Commissions or payments made to selling agents

Any costs involved with renovating the property (though renovations or additions are not advised in the case of a Wrap property)

Fees and charges by conveyancers or solicitors

Any other costs involved with purchasing or effecting the sale of the property

These costs will be taken into account at the end of your holding period (upon sale) and when calculating your capital gain for tax purposes.

Revenue Costs

There are normally a lot of ongoing expenses when you purchase an investment property and these can be claimed against that and any other income you earn to reduce your tax bill, as long as the property is income producing. In relation to a Wrap property, this list of expenses is cut dramatically in the first instance as the costs become the responsibility of the Wrappee’s. The following are a short list of things that I mean in relation to this, but it is in no way an exhaustive list:

Pest control and building maintenance

Water rates, council rates and all energy costs

Telephone charges

Cleaning, gardening and property maintenance

Repair bills

Depreciation

The tax office already has a standard way of deciding how much your property depreciates through age, wear and tear (even if the price of the property rises) and so this is an easy tax claim to make on your property. Some of the capital works deductions that are taken into consideration include such things as the driveways and paths, wiring, plumbing, gas fittings, windows, shutters, in-ground pools etc.

You can also claim back some plant and equipment costs such as any furniture, whitegoods, floor coverings etc but this is not as likely in the event of a property purchased and contracted as a Wrap.

Land Tax

No matter where you are in Australia, you will be charged land tax for any landholding outside of your principal home. Unfortunately it is also a tax that catches many property investors off guard yet is unavoidable.

Capital Gains Tax

Like the land tax, this is an unavoidable cost for investors in all states of Australia and will need to be paid at the time of on-selling your property.

This is only a very brief explanation of the types of taxes you can expect from your investment property so it really is a wise thing to get some solid financial advice before stepping into this type of investment.…

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Space Applications in the England’s East Midlands

Space Applications in the England’s East Midlands

The continued development of GNSS is enabling a huge downstream market in services and equipment – 250 billion Euros plus by 2020. Today’s main markets in terms of volume are in GNSS-enabled mobile phones and Portable Navigation Devices. Earth Observation and GMES (Global Monitoring for Environment and Security) is a cornerstone of the EU’s Space Policy framework programme, with a development budget of 1.4 billion Euros (2007-13) to support the development and commercialisation of opportunities across public and private sector in support of mapping, resource and emergency management.

The University of Leicester enjoys worldwide recognition for its international research in space science, planetary exploration and earth observation science: the National Space Centre in Leciester is a A�60M science visitor centre attracting over 200,000 visitors annually, with over 10,000 students and their science teachers participating in its Space Academy and other space education programmes. Meanwhile, the University of Nottingham is a world leader in space-based applications of GNSS.

Space applications industry

Industry specialists

Thanks to our world-class facilities and strong skills base, a number of key businesses involved in space applications have chosen England’s East Midlands as their base.

Handling almost half of the European Space Agency’s total Earth Observation data collection, Infoterra is an EADS Astrium company based in Leicester. It acquires and processes airborne and satellite data, provides operational information for monitoring and managing security and the environment, and operates one of Europe’s largest commercial geospatial hosting and archiving facilities.

With proven expertise in providing reliable, robust GNSS technologies, Nottingham Scientific Ltd (NSL) is a spin-out company from The University of Nottingham. At the cutting edge of positioning technologies, they have vast experience in satellite navigation, algorithm and software development, system prototyping, performance prediction and monitoring, and project management.

International aerospace companies rely on Lincoln’s Lockheed Martin Stasys Ltd, to provide impartial systems, technology and management consultancy to public and private sector clients worldwide.

Specialising in airborne surveys, BlueSky International Limited is based in Leicestershire. With more than 30 years’ industry experience, they are experts in data capture and analysis.

The National Space Centre in Leicester was founded through a partnership between the University of Leicester and Leicester City Council, with support from the British National Space Centre and EADS Astrium. It hosts the only Challenger Learning Centre outside North America, and is also part of a regional collaboration which has set up UK’s first Space Academy.

NEREUS (Network of European Regions Utilising Space Technology) is a network of European regions with an interest in the application of space technologies, and aims to influence European and national policy on the exploitation of space technologies and applications. England’s East Midlands is the only UK founding member.…

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Transforming Ways of Property Dealing – Real Estate Portals

Transforming Ways of Property Dealing – Real Estate Portals

With so many ups and downs happening in all the sectors due to global economic slowdown, investments in Indian real estate is the hottest topic for discussion. This phase of slowdown is also witnessing mass developments in real estate sector. Everyone is touched by one of the aspects of selling, buying or renting property. Apparently, changes in behavior of consumers and financial firms can be seen with the changing trends in unprecedented times.

Each one of us is generally involved in property related issues of investing, leasing or selling. Since it is difficult to take these decisions and there is some amount of risk involved, we mostly depend on property brokers and the prevalent word of mouth. These tendencies are now facing a make over with the ever growing internet penetration and the constantly increasing internet users. With user base exceeding 50 million, online property portals are set to revolutionize the real estate sector.

Real estate portals in India introduce a completely new way of sending across property related information and transactions. The developed real estate markets abroad are accustomed to the concept of online portals but it is comparatively new for Indian sellers and buyers. Even as the popularity of these portals in India is growing, it is expected to burgeon in the coming years. Number of listings and conversions of both residential and commercial property is multiplying everyday. Moreover, the feedback of both buyers and sellers of real estate in India has been favorable.

Online property portals are a platform for exchange of information relevant to property. They display residential and commercial property listings; buying, selling and renting options; other recommendations for property registrations, property loans, property laws, property news, etc. This newly developing trend of portals has made internet an acceptable as well as effective medium for real estate transactions. Both property sellers and property buyers find this medium highly cost effective, descriptive and extremely helpful.

For real estate sellers i.e. the supply side Internet is useful in more than one way. It can be noted as following;

o Advertising on internet allows more descriptive ads as against space restricted print ads.

o It enables lower costs as compared to other modes of advertisements.

o It offers various add on features like virtual walk through, uploading video clips, online databases, archives of listings, etc.

o Internet is the most interactive way of advertising as it connects the sellers with the potential buyers through chat messengers, etc.

o It extends more exposure to targeted buyers and offers measurable returns.

The real estate buyers i.e. those who stand on the demand side of property also find internet a feasible way of looking for property because:

o It is convenient and time saving to search for available property online than visiting real estate agents and waiting for their response.

o Portals reduce dependability on third parties as all the information and listing are available online.

o There is no limitation to number of properties available as property agents are generally popular within a particular area.

o The search and comparison between properties according to localities, etc has become effortless as portals are doing that too.

o Buyers can soon make online transactions, see featured galleries and walk through vacant properties.

The current times witness tenants and landlords interacting in a high tech way. The concepts of ‘automated transactions’ and ‘smart buildings’ is gaining popularity on this front. Apartment owners and commercial builders welcome automated rent payments, placing of work order requests online, display of facilities management, etc.

Creating a system that blends bricks and clicks is instrumental in changing the face of Indian real estate sector. Internet connectivity and meeting of buyers and sellers online only further enthuses the property market.…

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Business and Investment Opportunity Alerts

Business and Investment Opportunity Alerts

If you want to explore new money making opportunities, you should consider becoming a currency trader; if you decide to do so, you should know that the basic knowledge and understanding of the foreign exchange market is not enough. It could be sufficient at the beginning, when you start trading in the Forex market, but once you are past the beginner’s level in trading then you should certainly find the way to advance.

There are some forex trading programs though that tend to do everything in a fully automated mode; this means that they predict but also execute the trades. This is something that is both good and bad, depending on what kind of trader you are. Some people who enter the market find that very beneficiary, because simply they don’t know how to deal with the market; they follow the operation of the system and they are happy with it.

There are though some other traders who find that very annoying, because they cannot gain enough experience this way. The fully automated systems require minimum or no observation at all, which means that they cannot follow the trends and they just get the results at the end of the trading you want to start trading online you can probably try them, but always make sure that you are cautious enough; ask for recommendations and read reviews before doing so.

Robots can detect the trends before they actually appear; growing trends are actually the best ones to follow and this is something that robots can detect early enough. Robots will give the traders the pieces of advice and information they need in order to make the right decisions and execute the right trades at the right time.

Remember that it’s not a good idea to be too ambitious and too confident when in currency trading; move to another pair when you are really familiar with the first set and once you have mastered your strategy; you need to be able to make good decisions and the ability to implement more than one strategies is more than essential. It will keep you on track no matter what.

You cannot expect anything in day trading generating 100% winners all the time, but if the robots can generate a good percentage, that is a great plus for you, especially if you don’t have the time to follow the market closely and you need someone to do the research and update job for you.…