creative real estate investing

Investor Alert: S&P 500 loses $2 trillion in market capitalization

Investor Alert: S&P 500 loses $2 trillion in market capitalization

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Investor Alert: S&P 500 loses $2 trillion in market capitalization

In late August, the S&P 500 lost $2 trillion in market capitalization. When market volatility rises, savvy investors utilize diversification to insulate their portfolios from uncertainty. Bonds, precious metals, cash and other low-yielding vehicles are among the most popular diversification options, while real estate offers much higher returns and a broader range of advantages over other asset classes. In addition to regular dividends or rent, real estate is an inflation hedge, tax shelter, a tangible asset, and has a negative correlation with the stock market.

Tangible real estate is a diversification that should be a part of every investor’s portfolio. Although single-family residences (SFRs) were once considered a specialty asset reserved for wealthy insiders, Linton Global’s business model now offers all investors a reasonable entry point into real estate investing. SFRs have other advantages for investors.

Real estate is among the best-sheltered tax havens available, including the popular 1031 exchange. Section 1031 of the IRS code enables investors to allocate proceeds from a sale into a like-kind investment without paying capital gains taxes. Building a portfolio while delaying tax commitments is an effective path to generate a large portfolio.

If you’re interested in considering investing in rental properties to diversify your investment portfolio, please call Linton Global at (312)612-1031 to learn how our turn key process can make this possible. Investor Alert: S&P 500 loses $2 trillion in market capitalization

Mezzanine Loan and Commercial Real Estate

Mezzanine Loan and Commercial Real Estate

Mezzanine Loan and Commercial Real Estate In today’s commercial real estate environment, a typical capital structure for a real estate transaction may include mezzanine debt to fill the gap between a senior mortgage and the borrower’s equity in the property.

A mezzanine loan is not a real estate loan. Instead, a mezzanine loan is loan that is secured by the membership interests (think of this as shares) of an LLC (think of this as a corporation) that owns a huge real estate project. If you own all of a company and the company owns all of the property, then you own all of the property. Let’s discuss below how a “mezz piece” forecloses. Mezzanine Foreclosure: A “UCC” (Uniform Commercial Code) process

  • This is an administrative judicial process done in a court proceeding
  • The lender ‘instantly’ becomes the borrower
  • Unsecured liens are wiped out or ‘cleansed’ at the foreclosure process

The commercial real estate market is rapidly evolving. Often, traditional lenders are too bogged
down with red tape and stringent loan requirements to provide the necessary flexibility to handle
challenging financing solutions. At Linton Global, we recognize the importance of finding
creative solutions to non-conforming opportunities in an expedited manner. Feel free to contact
us at (312) 612-1031 to discuss any commercial real estate scenarios.

Mezzanine Loan and Commercial Real Estate

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