Posts Tagged ‘Debt’

Quantifying Student Debt In The Housing Market

Wednesday, October 15th, 2014


Chicago, IL (PRWEB) October 05, 2014

Peoples Home Equity, a Midwest based lender, has long known that first-time home buyer activity is at the mercy of student loan debt and jobs. While the labor market has improved, showing just a relatively low 5.9%, student debt remains a large issue. Thus, Peoples Home Equity was intrigued by a recent release that attempts to quantity how much the housing industry is suffered due to high student debt.

The release is titled Student Loans Will Cost The Industry $ 83 Billion This Year and was distributed by John Burns Real Estate Consulting, LLC on September 19th. This $ 83 billion figure translates into 414,000 home sales lost out of the forecasted 5.26 million new and existing housing transactions for 2014.

The consulting group highlighted in their 30-page report that 5.9 million households under the age of 40 pay over $ 250 in student loans per month compared to just 2.2 million back in 2005. A $ 250/month student loan payment translates into at least $ 44,000 per year in mortgage capability per household. Thus, only About 8% of the 2039 age cohort usually buys a home each year, which would be 1.35 million transactions per year. Reading this certainly emphasizes how much the student debt market is growing exponentially for the worse. Student debt has ballooned from $ 241 billion to $ 1.1 trillion in just 11 years.

Some officers at Peoples Home Equity view this current student debt situation as a tragedy of profit motive. American colleges and universities are draining the funds out of its own youth before it can reach the housing market. This effects lenders, home builders, architects, carpenters, etc Its hard not to blame disappointing weekly home sales and mortgage application data on the immense size of student loan debt in a year when Peoples Home Equity was hoping to see summer sales outperform those of 2013. The reality is home sales would have been stronger this summer had more mortgage applicants been approved by showing less debt on their submissions.

Peoples Home Equity loan officers understand the worries that some prospective borrowers have in taking on the responsibility of another large debt obligation. However, obtaining a home loan can actually be cost saving! Monthly payments for a mortgage are often less costly than paying for rent! If interested in applying for a home loan considering speaking to a Peoples Home Equity loan officer today at: 262-563-4026.







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Fairway Americas Client DREAM Capital Management Launches Its First Proprietary Distressed Debt Acquisition Fund, Distressed Real Estate and Mortgage Fund I, LLC

Sunday, August 17th, 2014


(PRWEB) August 07, 2014

Fairway America, LLC (Fairway), a Portland OR based real estate asset based advisory and investment firm, played the lead role in consulting, advising and guiding the structure and formation of the Distressed Real Estate and Mortgage Fund I, LLC (DREAM or the Fund), based in the greater New York City metropolitan area. The Funds Manager, DREAM Capital Management(DCM) is owned and operated by long time Tri-state area residents Robert Napolitano and Todd Royer.

Mr. Napolitano has been passionate about real estate since his youth, learning from his immigrant father who came to the United States and began investing in real estate more than 50 years ago. My father drove a bus in Manhattan for more than 40 years, said Napolitano, and he saved and skimped to buy his first rental house. Over time he bought and sold many of them and the financial independence he achieved doing it made a great impression on me. Napolitano used these formative experiences as a motivation to create a career in the real estate business, with a focus on real estate finance.

Sensing trouble in the mid-2000s during the subprime heyday, Napolitano decided to spend time learning the more technical legal side of the real estate business in anticipation of a wave of defaults. The practices that were going on those days in the mortgage business made me think there were going to be lots of problems with foreclosures based on the crazy loans being made, and I wanted to learn how to bring value to the market in the coming downturn, which I felt was inevitable, said Napolitano. He spent time focusing on the foreclosure market and began to craft the strategy that today is the foundation of DREAMs investment focus. I believe there is a long term opportunity in helping people solve difficult problems that arise as a result of lifes circumstances, and do well financially, in the process, for ourselves and our investors. I also felt a pooled investment fund was perfect for us to be able to execute on this vision.

Napolitano first ran into Fairway at the American Association of Private Lenders (AAPL) conference in Las Vegas in the fall of 2012. When he saw a panel session featuring Fairways CEO, Matt Burk, he knew right away these were the guys to help him realize that vision. The depth of their experience and comprehensiveness of their approach were just what I was looking for, said Napolitano. I had been trying to figure out how to put DREAM together and saw that these were the people to truly help me. Having now gone through their complete fund launch consulting engagement, I am ecstatic with that decision, as I have a complete and thorough knowledge and understanding of exactly what we are doing as we launch our fund. Fairway has been invaluable in helping us get this off the ground.

DREAM has also engaged Fairway to handle the ongoing back-end administration for all of the Funds activities. Having Fairway on our team going forward will make a huge difference to us as we grow our Fund, said Royer, who will head DREAMs ongoing operational functions. Their processes, systems, and support give us a great deal of confidence that will help us inspire that same confidence in our investors as we move forward. We can focus on raising capital and finding investment opportunities that meet our criteria and know all the important fund administration details are being handled professionally by an experienced and capable group of people. DREAM is launching in August 2014 and accepts accredited investors only.

About Fairway America

Fairway America, LLC is a longtime real estate lender, fund manager and boutique real estate finance advisory firm providing strategic business planning services nationwide to select private money lenders and real estate asset based dealmakers around the structure, architecture, and administration of proprietary 506 Regulation D SBRE funds. Fairway America Management Group II is the manager of Fairway America Fund VII, LLC, which invests in other 506 Regulation D SBRE funds nationwide.

About Distressed Real Estate and Mortgage Fund I

Distressed Real Estate and Mortgage Fund I, LLC is a 506 Regulation D SBRE fund that invests in opportunistic real estate debt and equity in the eastern United States. The Fund invests in both residential and commercial real estate asset based opportunities and accepts accredited investors only.







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IRA Financial Group Clients Using Self-Directed IRA and Solo 401(k) Plans to Purchase Detroit and Puerto Rico Debt, According to an IRA Financial Group Monthly Report

Tuesday, October 1st, 2013


Miami, FL (PRWEB) September 24, 2013

IRA Financial Group, the leading provider of checkbook control self-directed IRA and Solo 401(k) Plans announces the finding of its monthly report which found that an increasing number of retirement investors were looking to purchase distressed municipal debt, such as Detroit and Puerto Rico debt using their self directed IRA LLC or Solo 401(k) Plan accounts. We have seen a surge in interest from retirement account investors looking to use a tax-deferred self-directed IRA or Solo 401(k) Plan account to buy Detroit and Puerto Rico bonds at depressed prices, Stated Adam Bergman, a tax attorney with the IRA Financial Group. Detroit’s bonds have become a very hot topic with self-directed retirement investors since the Motor City filed for the largest municipal bankruptcy two weeks ago, stated Mr. Bergman.

According to Mr. Bergman, many retirement investors who have some experience investing in troubled or bankrupt companies think these bonds will turn out to be lucrative in the long run.

The problem is there aren’t that many available. Typically when a taxpayer purchases a municipal bond, such as Detroit, one of the advantages is that the interest generated by the bond is exempt from tax, which is quite attractive to high net worth individuals. Such a tax exemption is typically not very attractive to tax-exempt investors, such as a pension plan or IRA since they are already exempt from tax. Interestingly, retirement investors have shown strong interest in purchasing tax-exempt municipal debt, such as Detroit, Puerto Rico, and Illinois even without the added tax benefit, stated Mr. Bergman.

The primary advantage of using a Self Directed IRA LLC and Solo 401(k) Plan to make investments is that all income and gains associated with the IRA investment grow tax-deferred.

Using IRA Financial Groups self directed IRA LLC with checkbook control solution to make investments offers a number of very interesting investment opportunities, including the ability to diversify ones retirement portfolio with real estate, precious metals, and other alternative investment options. With IRA Financial Groups self directed IRA LLC solution or Solo 401(k) Plan, traditional IRA or Roth IRA funds can be used to make non-traditional investments, such as real estate to better diversify themselves from a falling stock market.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.







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