Apr
29

Institutional Investors are Driving Down Rates in the Real Estate Industry

Colony Capital, BlackRock, Fortress, Apollo are just a few of the many institutional investors that are capitalizing on today’s real estate investment opportunities. As a result, these large corporations have driven down industry rates. Thus, making the real estate space even more competitive. As Craig Cecilio, Founder of DiversyFund says, “It’s was inevitable that this was going to happen during a great market.” And, goes on to say, “I predicted this was going to happen back in 2011 as the market started to heat up again. In coming years, we will continue to see the cost of capital become more and more competitive.” The Institutional Investor Shift If we are comparing 2007-2008 to today, the market is quite different, in a good way. There’s not one singular way to structure a real estate debt and equity investment anymore. “We are continuing to create new equity products every day,” mentioned Craig Cecilio. “Creativity is […]

Feb
11

Real Estate Cycles

During the last several years, we have seen real estate markets dramatically fall but then take an about-face with exceptional speed.  Other markets have returned to pre-2008 levels while some are still in recovery mode. After their first month in this New Year, the Dow Jones Industrial Average fell 5.2 percent while the S&P 500 declined 3.6 percent in January. This follows a 2013 with double-digit gains for both. Especially notable is the market’s declines in the last week of January, which may have led some investors to scratch their heads as they think about 2014 investments. There could be a lot of confusion about where to invest their money. Investment Confusion Infuses Should they stay away from stocks? What about bonds?  Where should they invest? Help is on the way and one thought is prime real estate markets; they have recovered well as they were without exotic loans and areas. […]