Funding tools, ideal conditions support current purchases
(San Francisco, CA) 10 March, 2010 – In our new world where Darwinian ‘survival of the fittest’ is the economic law, and home prices have hit what many believe to be the bottom or close to it, there are fortunes to be made now by investing in real estate. We are at the ‘perfect storm’ where all strategies converge for the savvy investor.
“Some of the casualties of this recession are the estates that have been underwater* for a year or two and have either been deeded back to financial institutions or foreclosed upon. Sales are picking up, however,” explains Donna Lee Laue, CEO and President of Unique Global Estates and co-founder of The Luxury Conclave. “For the investor who wishes to duplicate the model of fortunes made in real estate after the Great Depression, the facts are: most of the great property investments are surfacing now, prices are remarkably low, brokerage agent rosters have shrunk 30-65%, leaving the most experienced negotiators accessible in all price ranges, and there are alternative financing vehicles available.”
“Our national research indicates that investors are working under the radar and purchasing trophy properties at substantial discounts, all-cash. They are taking advantage of this ideal time and acquiring homes, many of which are not formally listed for sale. Financing remains a key issue for investors. The Luxury Ambassadors of Unique Global Estates have access now to The Investor Group and its funding opportunities utilizing Alternative Collateral Market-Based Lines of Credit at 2-2 ½% rate of interest. Once a client is introduced to The Investor Group, various vehicles other than the subject real estate, such as a stock portfolio, are examined to provide the alternative collateral. By pledging all or a portion of the portfolio, the consumer has access to funds to acquire properties without liquidation,” states Laue. For both residential and commercial real estate purchases, the line of credit can be available for down payments, refinancing, full amount of purchase price, and the delta between lender approval and purchase price. There is a minimum of $250,000 with an almost unlimited ceiling.
“Private mortgage bankers have been making funding like this available for years, but at much, much higher interest rates averaging 5-6% currently. Unfortunately, in this market, lending institutions are still unwilling to work in the jumbo loan arena, and all-cash offers have become the norm. This Market-Based Line of Credit does not require that investors sell stock, provide appraisals or incur capital gains. Less heartburn, lower interest. Our
Luxury Ambassadors are completely knowledgeable about their local market and are completing these sales quietly. They know who wants ‘out’ and who wants to purchase – with all-cash sales or alternative collateral tools. We’re finding that access to this financial alternative is generating enormous interest among investors,” Laue explains.
Jo Ann Davis, Luxury Ambassador Spokesperson for Sacramento, California, states “I have introduced four of my clients to The Investor Group within the past two weeks. They will each consolidate their current property loan liabilities in the realm of $20 million from a 6-61/2 % interest rate to 2-2/1/2 % Line of Credit thereby eliminating the loans against each individual property. Utilizing alternative collateral enables them more flexibility to manage and ride out the bottleneck in the banking/financing arena.” Contact Davis
Laue described the current situation, “Luxury sales account for a portion of the movement we’re seeing. The vast majority of Luxury Ambassadors are closing transactions for those in lower price brackets too. First home buyers, mid-range buyers, townhomes, condos, we are seeing it all now. Buyers are realizing that the timing couldn’t be better for real estate investments.” Information is available at [email protected]
About UGE:
Unique Global “>Estates is the world’s largest international searchable database exclusively for estates listed in excess of $1 million UDS, currently showcasing over 60,000 estates in more than 100 countries. Rigorously screened and peer-selected brokers comprise their Luxury Ambassador Community. These experienced professionals provide the best luxury listings and knowledge for homes in all price ranges, using powerful tools to negotiate, advise and consult with the highest statistics of successfully closed transactions for real estate purchases.
About The Investor Group:
This private organization, with access to a nearly unlimited supply of capital, has made available Market Based Lines of Credit based on alternative collateral as accessed through introductions by UGE’s Luxury Ambassadors.
* In real estate, the term ‘underwater’ is used to refer to properties for which the amount owed is greater than the value.
Contact:
Kelly Reed
Ph: 415-441-1157
