Category Archives: Real Estate Investing

The topic for real estate investing

CAP Rate is determined by the cost and structure of financing

I wrote a short article about this over at LinkedIn. Click here.

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My thoughts on Bitcoin and cryptocurrencies

Bitcoin (BTC) has been hacked several times, mostly for “proof of concept” and not for nefarious intent. The algorithms for creating new BTC are now so difficult to compute that most BTC farmers are out of that business. The processing … Continue reading

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Opportunity for Transactional Funding Lenders

Starfury Capital Management LLC is pleased to announce the opportunity for private financiers, credit unions, and banks to participate as Transactional Funding lenders for low risk, high yield investments. These investments are very short term, just one business day and … Continue reading

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Only Cash Flow Matters

2014 Q1 is almost over. The lamestream media says everything is rosy (yeah, right). The problem with a cliff, even a demographic cliff, is that it is such a sharp drop-off that most folks can’t see the cliff until they … Continue reading

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Crisis Investing in Real Estate

Booms and busts always happen. You can’t defy the Law of Gravity. What goes up must come down. Today, the real estate marketĀ is a Sellers’ Market in most areas. Most average folks view real estate investing as speculating in price … Continue reading

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Preparing for another economic crisis

Housing prices will collapse with a nominal increase in interest rates. Get your financial calculator: N=360 (30 years), Rate=4% per year, PV=100,000, PMT=477.52, FV=0. Those are the numbers for a $100,000 mortgage debt at 4% per year, fully amortizing over … Continue reading

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Buy or Refinance Now

The valuation of income properties is directly tied to the cost and structure of financing. Real estate is a “borrowed money” business. As interest rates rise, the capitalization rate required to service the debt for a purchase or refinance also … Continue reading

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The Equity Waterfall for a Syndicator

I just wrote an article about my preferred structure for structuring the equity financing with senior equity, preferred equity, and common equity. A syndicator that raises private equity may consider an equity waterfall that is similar to a combination of … Continue reading

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Guru Interest Rates

I am often astonished at the real estate “Guru” who charge outrageous (unpublished) interest rates for their products. As if their astronomical pricing isn’t bad enough, they offer time payment plans that are nothing short of usurious, making high credit … Continue reading

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Capitalization Rate and Cash on Cash Return

I just added a new article on the correct way to calculate the Capitalization Rate (CAP) according to the cost and structure of financing. An income property is generally valued on its cash flow, either the current cash flow or … Continue reading

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