Question hi, what creative ways can i learn from you to grow my real estate business. i saw my friends buy a lot more real estate than me using effective financing. i myself have used private money and reit money and have gotten very high ltv's. my friend went to a credit union and with them bought a 50million dollar building in manhattan. i dont know the details but i think the down payment was 5million and he gave them half the building with the agreement that he would pay them interest on their 5million and then he would buy them out later. i have about 700,000 available to me now and with the financing i have i can buy a 7million to about 20million dollar building (if i can find one) what can i do better through the stock market or securities. thankyou.
Answer Hello Rob,
Well first, let me say that SEC/Federal Reserve rules prohibit me from giving any stock investmetent buy/sell advice, so by proceeding you are accepting that I provide no such advice nor tax advice. Compliance with the law is important in my profession.
But what I can tell you is that we do have some individuals involved in commercial real estate purchases who have taken their cash and rather than locking it into a building, have placed it into stocks with good strong potential for growth, after consulting with their financial advisors. They have then taken the stocks and placed them into our 90% loan-to-value, non-recourse (freedom to walk away from repayment with no consequence) HedgeLoan program. This program does not require interest or principal to be paid until loan maturity, and the maturity dates can run up to 20 years, though most go for about a 5-year HedgeLoan. There is never a margin call with a HedgeLoan, and best of all you are obtaining cash without a sale of your stocks, which can trigger a taxable event.
These inviduals have, in the past, purchased such stocks, then placed the stocks up as collateral for their HedgeLoan. With funds from the HedgeLoan, they then use this for downpayment on a commercial property.
What are the advantages? The biggest is that you can participate in an upward moving stock market WHILE you participate in a commercial real estate activity. You can in essence diversify your asset base -- stocks and real estate -- while elminating the risk of margin calls or pursuit of other assets in the event of default on the loan (lender's only recourse is the stock portfolio, even if the stocks' prices have dropped to almost nothing, Enron style). Interest is usually in the 9 percent range for the HedgeLoan, but dividends paid credit against the accrued interest up to a maximum of 4 percent.
So a HedgeLoan lets you stay in and out of the stock market and the real estate market -- at the same time. We protect your full upside -- the stock's appreciation -- to your account after interest and principal are paid.
You can get more info at www.hedgelender.com. I will also be willing to speak with you directly.
