REO Investing Falls Short Due To Lack of Product... How To Obtain High Yield Alternative Investments
By: Marcel Ford
REO (also known as real estate owned, bank owned real estate, lender owned properties as a result of foreclosures) investments is where many investors and groups hedge their potential to purchase properties at a discounted price and capitalize on "higher than industry standard" returns. Individuals, pooled groups of investors and hedge funds are beginning to realize that without direct connections with established inner-banking relations, their abilities to truly maximize on REO product usually is lost in a juxtaposition of half-truths and meandering promises.
If you're involved in the REO industry for some time, you will hear hear, on a daily basis, the frustration in the voices of brokers as well as clients who have been sitting, continually stirring a pot which has nothing inside of it. Recently, it has become our job to be more of an educator to these clients, investors and brokers. The truth of the matter is that while we provide many of our clients with REO packages, for the most part, those looking for $100M dollar packages to a billion dollars, are usually disillusioned. It is important to understand how the REO marketplace really works.
Here is some reality:
The total expected sub-prime related losses through 2009 are about $500B. The majority of that is by way of write downs, discounted sales of whole loan pools and securities, legal and servicing, foreclosure and workout costs, holding costs, auction fees, and Wall Street brokerage fees and on and on. A small fraction of those losses are actual REO's while even a smaller fraction is related to bulk REO sales at major fire sale prices.
This was the bulk of the sub-prime related losses through January of 2008:
MAIN SUB-PRIME LOSSES SO FAR:
Merrill Lynch: $22.1BCitigroup: $18BUBS: $13.5BMorgan Stanley $9.4BHSBC: $3.4BBear Stearns: $3.2BDeutsche Bank: $3.2BBank of America: $3BBarclays: $2.6BRoyal Bank of Scotland: $2.6BFreddie Mac: $2BJP Morgan Chase: $3.2BCredit Suisse: $1BWachovia: $1.1BIKB: $2.6BParibas: $197MSource: Company reports
So, this equates to a total of about $280B sub-prime "related losses" of which heavily discounted bulk REO's would account for 6% (at best case scenario) through January, 2008. Deutsche is JUST NOW putting $40B out to "bid" and NOT to bozo broker chains, but to Blackrock and similar firms. Citi is JUST NOW putting $12B out to "bid." The MAJORITY of those are loan pools and mortgage related securities, NOT bulk REOs.
So, when you hear of all these "phantom" REO pools that are out there that investors are directed to at 33% of market value, we caution you to be more pessimistic than optimistic. It would be inaccurate to state that there aren't any smaller pools that are being sold, just not in the large volume or price points that so many believe are available...
Now, for the good news out of this:
While there appears to be a strong "attraction" to REO's as well as the builder closeout that are being offered out there, many buyers who were purchasing bulk closeouts as well as REO's are now more interested in what is referred to as High-Yield Private Investment Programs. Here are some of the reasons certain individuals have converted over to the lucrative world of HYPIP's:
1. The returns generated are astronomical when comparing REO's and builder closeouts to private investment. Imagine buying a bulk builder closeout purchase for 50 cents on the dollar. First of all, these are few and far between currently in the marketplace, though they do exist. After the cost of money, the rehab work needed on any of the properties, the price structure for liquidating those homes in a timely fashion and all the other added holding costs of purchasing that portfolio, a Buyer is hard pressed to earn a 30% return total.
2. The ability to link up correctly with someone who really, truly has the sources to supply those bulk closeouts from Seller's and banks is next to impossible for most "brokers". Builders typically go direct to their sources already in the Matrix or those lucky few who have the relations already established with those builders. There are no more than roughly a couple dozen verified and legitimate groups out there (that we know of) who know how to close these transactions, understand the dynamics behind them and know how the system works from fruition to completion.
3. Builder closeouts as well as REO's do not stand a leg against Private Investments. Become an REO investor for a minute. Would you rather realize a return of 20% annually with an immense amount of due diligence, implementation, eradication and hassle of a bulk closeout/REO buy; or, would you prefer a return that guarantees a monthly 5 to 13% return that's on auto pilot once engaged?
Your investment is secure since it is never taken out of your control or current bank account.
This is what is referred to as the High-yield Private Investment Program. Many investors are looking for these types of programs. There is a Fraternity of Opportunity and it would behoove you to start looking for sources that are aware of these programs and offerings.
To your investing success.
InvestorEarth provides educational information to investors wanting to buy REOs, Medium Term Notes (MTNs), Bank Guarantees (BGs) and Collateralized Mortgage Obligations (CMOs) and High Yield Alternative Investments. Visit http://www.InvestorEarth.com for more information.
1:57 PM | 0 Comments
Recession Proof Investing - Where to Make Money in a Recession
By James McKerr
With most Western economies facing economic downturns, if not all out recession it is becoming increasingly hard for investors to find good investments that provide solid returns.
The recent global credit crisis has made it much more expensive for companies to borrow money to fund their activities. Virtually every listed company uses some for of debt to finance part of their trading activities meaning that there are virtually no companies out there that have been unaffected by this crisis. This increased cost of borrowing has forced profits much lower and for some highly leveraged companies it has spelled the end, just as it did for Bear Stearns. All of this has meant that stock prices have been falling and with the economic climate set to get worse traditional equity stocks look set to lose investors money.
Diversification is Key
Traditionally in recessions investors were well advised to move funds into what are known as 'staple sectors' such as food industries, the theory being we all need to eat and buy their goods. However the impact of increase borrowing costs as well as rising commodities prices has meant that food prices are getting more expensive and hitting the bottom lines of food industry companies.
In order to better recession proof your investments it is essential to learn to not be afraid of investing in new markets or industries. May investors make the mistake of believing they ca only succeed by sticking to investing in their specialized niche. This works when markets are rising however when they are falling it can be compared to trying to pick good apples out of a rotting basket. Instead look for a new fresh basket in which to invest.
Learn more about exactly how to recession proof your investing or learn to trade commodities.
Article Source: http://EzineArticles.com/?expert=James_McKerr
6:15 AM | 0 Comments
Learn How to Make Money From Investing in Savings Accounts
By Matthew Tutt
In today's world everyone has a savings account. The financial institutions, banks and credit unions generally maintain these kinds of accounts. Generally an interest is paid on the money that is deposited by people in these accounts. However, a person cannot directly spend the amount of money that is deposited in these accounts. These accounts provide the account holders an opportunity to keep a part of the liquid asset as savings.
People always prefer those money accounts that provide them with higher rate of interest. This is because these accounts allow a faster accumulation of the savings for the account holders. So, a person before depositing his money in any kind of device should find out which one will provide the best rate of interest. A person can do this by comparing the rate of interest provided by the different financial institutions.
The functioning of the savings accounts is different in comparison to the checking accounts. A person can make limited number of both transfers and withdrawals from the savings accounts. Besides, a person cannot use checks for withdrawals from these. However, a person can make purchases using the money deposited in these accounts. However, if a person wishes to make a purchase with the money deposited, he has to get the money transferred to the transactions deposit. These transactions deposits are also known as currency or checkable deposit.
Savings accounts are mainly created in order to keep aside a part of money which can be used during retirement, or for any kind of purchase or during emergencies. A well maintained savings account also creates a good credit score for the holder of that account.
Learn how to make money investing using the Internet. Discover how many people currently make money from utilising savings accounts, gaining interest on any of their money. Find out how you can make money from investing your money at our website.
Article Source: http://EzineArticles.com/?expert=Matthew_Tutt
8:24 AM | 0 Comments
Nasdaq and SEC disclosure of records of insider trading transactions for Sina.com (SINA)
by Bill
On the Nasdaq and SEC website it can be found from October 26, 2004 to February 7, 2005 (that is, several U.S. law firms launched on Sina's "collective action period (class period)" Investigation), Sina insider trading transactions. I calculated Sina's board and management sold a total of 97.4433 million shares of Sina shares, representing 1.93 percent of Sina total share during this period .
During this period, the Sina CEO Wang Yan and CFO Cao sold total 30.9 million shares of stock. Because we don't know the the total number of shares they hold, we don't know whether they they dump all their share through these insider trading actions.
I lists Sina's insider trading data, found from sec.gov, as follows:
Sina CEO Wang Yan on the October 29, 2004 sold 1.35 U.S. dollars a share, the price of the implementation of the 10 million shares of Sina options; He also sold 1.88 per share on November 19, 2004 to 1.88 per. The implementation of the dollar price of 50,004 thousands Sina options, and then the price is 37 U.S. dollars sold. Total sold 15.4 million shares.
Sina CFO Cao Wei on the October 29, 2004 sold 1.88 U.S. dollars a share, the price of the implementation of the 10 million shares of Sina options; He also sold 1.35 U.S per share on November 19, 2004. Total sold 15.5 million shares.
Sina executive vice president Jiang Xianbin in the October 29, 2004 to 1.88 U.S. dollars a share, the price of the implementation of the 20,005 thousands Sina options. Total sold 2.5 million shares.
Sina COO Lin Xinhe on the October 29, 2004 to 1.35 U.S. dollars a share, the price of the implementation of the 12 million shares of Sina options; He also November 22, 2004 to share 1.88 U.S. dollars the price of the implementation of the 95,833 shares Sina options, and to 35.739 U.S. dollars was sold. Total sold 21.5833 million shares.
Sina Co-Chairman Jiang Fengnian on the November 3, 2004 at a price of 34.535 U.S. dollars sold 11.3 million shares of Sina stock; again on November 4 a share, the price of 34.549 U.S. dollars sold 2 million shares of Sina stock; November On the 8th to 34.655 U.S. dollars a share, the price of the stock sold 6.7 million shares of Sina. Total sold 20 million shares.
Sina director Cao Defeng on the November 17, 2004 sold 38.935 U.S. dollars a share, the price of shares sold 5 million shares of Sina; again on November 18 a share, the price of 37.541 U.S. dollars sold 6 million shares of Sina shares. Total sold 11 million shares.
Sina director Zhang Yichen on the November 17, 2004 sold 1.88 U.S. dollars a share, the price of the implementation of the 20,002 thousand six hundred Sina stock options, and to 38.270 U.S. dollars was sold He is also on 1 December 2004 1.88 U.S. dollars per share, the price of the implementation of the 20,007 thousands Sina options, and to 38.709 U.S. dollars was sold. Total sold 4.96 million shares.
Sina directors Pehong on the November 18, 2004 sold 17 U.S. dollars a share, the price of the implementation of the 20,007 thousand five hundred Sina stock options, and to 37.021 U.S. dollars was sold. Total sold 2.75 million shares.
For more real time insider trading data, updated simultaneously with sec website and organized for easy use, please refer to insidertradings.com
About the AuthorFinancial Analyst for insider trading activity
Read More......
12:38 AM | 0 Comments
Investment Trends - Where Are the Big Corporations Choosing to Invest?
The world is experiencing an economic slump. Governments are quick to quell rumours of a recession, referring instead to "volatile economies" and "difficult times", but that doesn't stop the people on the streets from using the word freely. People are worried; they're worried about the rising costs of fuel and basic foodstuffs, as well as the potential for food shortages across the globe. Amidst all of this bad news, however, there is a glimmer of hope, at least as far as investment in the UK goes. According to a new report by KPMG, the UK is the most popular European inward investment destination for global corporations; a trend that's set to increase over the next five years.
KPMG asked corporate investment strategists from over 300 multinational companies where they plan to invest within the next year and then again in five years' time. Looking toward the next year, the UK lies third in the world for inward investment, with only the US and China ahead of it. In five years time it will fall to fifth place after being overtaken by Russia and India, but will still experience a 3% growth.
The rise in investor confidence has been attributed to the relative stability of the UK market, as well as the perceived fairness of political and justice systems. For years the UK's tax system has counted against it, and even now some investors are still wary of investing because of it, but it seems that stability is a greater attracting factor than tax is a detracting one. Nevertheless, Sue Bonney, head of tax for KPMG's EMEA region, believes that the UK would benefit greatly by revisiting and improving its tax system.
Good news for the economies across the world is that most investors believe that the current crisis won't last much longer than the next two or three years, and that in five years' time, nations will once again be flourishing.
Other trends indicate the emergence of BRIC economies as a force to be reckoned with. According to a report by Goldman Sachs, Brazil, Russia, India and China (BRIC) could overtake the G6 economies in terms of growth by 2050. According to the International Monetary Fund (IMF), stocks in the BRIC nations have risen by 70% over the last two years, which is enormous when you compare it to the growth of other emerging markets, which was only 42%.
Both reports indicate that India and China will experience significant growth over the next few years. China is expected to be the third largest economy within the year, surpassing Germany, while India is reported to be the fasted growing economy, and will achieve third place globally behind China in 2050.
Experts agree that the continued growth of the European and BRIC economies will bring about a balance in the battle for economic power between the Americas, Europe and Asia. According to Sue Bonney, it could even "herald the start of an entirely new global economic game". And that's good news for consumers everywhere.
Recommended sites:
http://www.equitymaster.com/detailb.asp?date=12/15/2003&story=1
Sandra wrote this article for the online marketers Capital Tax Consulting offshore tax specialists leaders in the field of offshore tax, tax management and tax consulting, they aim to optimise your tax options and make your life simpler at the same time.
Article Source: http://EzineArticles.com/?expert=Sandy_Cosser
6:56 AM | 0 Comments
10 Tips on Finding Hot Stocks
By: Mark Crisp
Everyone else making a fortune in stocks and you aren’t? Sick of watching stocks climb into space and you are not onboard? Want to finally make some profits the easy way in the stock market? You need my top ten stock trading tips:
1. Find them when they are still LOW!
A stock at its lowest point has no other way but to go up. You can make the most out of your money when you first bought the stock when it finds its way up. A stock that just reached the rock bottom has the most tendencies to go the opposite direction up and keep soaring.
Though you may say that this is a gamble for your part, but when a stock find its way up and keep its momentum; you find yourself a goldmine. Anyways, you went in with a very minimal risk.
2. The Early Bird Gets the Worm: Get them EARLY!
This is called penny stock investing. You get into the game from the beginning. It is common for these stocks to come up to as much as 100% on a 24 hour basis. A stock on its early stage has the most potential to find itself on the top of the food chain. When you identify these beginning stocks, you found yourself a good deal. You bought them cheap, you can sell them high.
3. Strike while the iron is hot: Get them when they are still rising!
In finding the rising stock, you can comfortably be assured that your investment is at the right track. A stock at a rise won’t be there if it’s doing something wrong. These kinds of skyrocketing stocks have larger chance to further go up because of right business decisions.
This kind of choice won’t be much of gamble than going for a stock on a slump. The downside on this kind of option is the amount of money that should be prepared. Expect this type of stock to be costly. But hey! It’s more or less a guaranteed profit.
4. Is The Business Making Money?
Ask if this company you are trying to invest on is really making money. You need to research on a company how they really do.
For example, you may consider that a fresh company is still yet to establish sales and profit. Though their ideas are feasible for marketing opportunities, fact still remains that it’s still up for a start.
5. Does the Business Actually have a product?
Dwell into the gist and details of the company. What are they selling? How are they actually making money?
You have a hundred and one ways to make money. Have a bird’s eye view how they generate profit. You can also check if others have tried it. Did they do well? Or was it a failure?
It helps if you are knowledgeable of the company’s business model.
6. How many competitors are there?
It is a good sign if there are other companies getting into the bandwagon. The increasing number of competitors simply means that there is a demand. When there is a demand, your stocks tend to go up.
However, you must also note the number of competitors if there are already so many. If this is the case, it’s hard to get into a business with so many competitors ahead already.
7. Is the Company a Leader or a Follower?
This tip is a follow up to number 6. When you have a good product out in the market and other companies try to venture same path; ask is the company a leader or a follower?
Know there history. Know how they performed in the past. How long have they stayed at the top? Did they find any slump and bounced back or did they have a successful past ever since?
Has the business established itself firmly that they will still be ahead even if there are already too many competitors?
8. Who are the people involved in the company?
Know who the investors in this company are as well as who’s running it. Try to make a research on their past record. Did they have any past failure in their ventures as businessmen? Or do they have this colorful resume of success written all over it?
These things will get you ahead. Siding with the proper people will increase your chance of success in finding the right hot stock.
9. The Scandals.
Take a good look at their past deals. Crooked deals from their records are among the things to look out for. If the company you are eyeing has this kind of past, take our advice: DO NOT BUY ANY OF THEIR STOCK.
10. What’s the newest BUZZ?
Good news regarding the company would increase their stock value up to 100%!
News about product releases and of similar content makes the buzz. This kind of news is an indicator of good things to come.
But a negative fuss on a company’s product would lead your stock the other way. In that case, do not buy their stocks.
Read More......5:31 PM | 0 Comments
How to Give World Class Trading Powers in Thirty-two Seconds
I wanted to title this presentation, How to Give World Class Trading Powers in Thirty-two Seconds, just because I thought it was sort of snazzy and I thought that might be al little misleading. We are going to talk about how best to use the membership website. I am going to give you a little bit of an introduction to me; information that wasn’t necessarily in the letter that most of you saw. We are going to be going over some of the opportunities that I see in the Forex right now; a couple of details that have to do with the meta-trader program.
Unfortunately, one of the things we have to deal with meta-trader is that I don’t control it so I have got a way to get you technical support and your questions answered with the updated versions. So we will be dealing with those meta-trader issues. Then I am going to walk you through exactly what I do in twenty minutes to get ready for the market. Hopefully by the end of this presentation, you’re going to have a better understanding on how to use the membership website. You are going to have a better understanding on how to use the membership website to duplicate these world class trading powers that I am talking about. I am also going to give you a couple of very advanced, although simple, learning technologies tips for actually going through the course.
A big part of the course is you are going to see exactly what I am doing. I am going to give you the game plan that I have every single day that I am trading for the markets. My personal goal is to really give you retire. Here is what that means. In my mind, somebody who is retired is completely independent. They are not dependent on a boss. They are not dependent on the business. They aren’t even dependent on their own decisions with their money because that has all been taken care of. Okay? So what does it mean to be retired in the market? That’s what we are hopefully going to have answered for you by the end of this presentation.
Mac X is recognized as a forex expert trainer, forex trader and author of three best-selling forex trading books and Home Study Courses including "How To Get Filthy Stinking Rich Trading The Forex" book and Home Study, "How To Trade The Harmonics of The Foreign Exchange Markets". Mac X has trained over 1,300 students in large forex seminars, one-on-one and small groups. Read Mac's Forex Blog for more Forex Trading information at TheInsiderCode.com.
Investments Article Source: http://www.eArticlesOnline.com
6:12 AM | 0 Comments
