Real estate is a perennially popular investment type for individuals to pursue within their self-directed IRAs. The ability to invest in real estate – both developed and undeveloped properties – can provide an investment and risk profile that generally can’t be mirrored with traditional stock market investments.But holding real estate within a self-directed IRA can also require a greater level of investment involvement as compared to those other asset classes.With stocks or mutual funds, the only invest
Banks Make Money from Interest Paid by Borrowers
“For most banks, loans are the primary use of their funds and the principal way in which they earn income. Loans are typically made for fixed terms, at fixed rates and are typically secured with real property; often the property that the loan is going to be used to purchase.”
How Loans Work
How Private Lending Works
Real estate is in a constant state of flux. With advances in technology, industry changes can happen faster than they ever did before. Such changes are happening again in real estate.
The Voice of Real Estate, an industry news reporting arm of the National Association of Realtors announced sweeping changes brought about by the Consumer Financial Protection Bureau that will affect the closing process nationwide. These changes include the retirement of the HUD-1 closing statement, the Good Faith Estimate, and Truth In Lending. They will be replaced by two new forms: the Loan Estimate and the Closing Disclosure. All paperwork must be finalized no later than 3 days prior to closing. If last minute changes are made, it could trigger the three-days to start over again.
Also covered in this latest news piece:
- New proposed rules concerning the use of drones in real estate
- Foreign investors increasingly interested in American commercial real estate
Vacancies have risen and more units are expected to hit the market in 2015. Despite this news, apartment fundamentals remain strong due to more people choosing to rent than to buy. Here is the latest video by REIS Reports discussing the topic in more detail:
The National Rental Home Council, a new association of institutional single family rental housing operators recently released a set of operational guidelines for the standardization of operating single family rental housing. The NRHC is first of its kind formed to raise the bar in a growing industry of single-family owner.
Click here for a copy of the new NRHC Operational Guidelines.
JULY 30, 2014 – Dionne Searcey, NY Times | The United States economy rebounded heartily in the spring after a dismal winter, the Commerce Department reported on Wednesday, growing at an annual rate of 4 percent from April through June and surpassing economists’ expecations.In its initial estimate for the second quarter, the government cited a major advance in inventories for private businesses, higher government spending at the state and local level and personal consumption spending as chief contributors to growth. Economists, who had been hoping for a full reversal of the first quarter’s decline, were cheered by the second quarter’s numbers. The consensus forecast for G.D.P. was 3 percent.
WASHINGTON 07/09/2014 — The Federal Reserve said on Wednesday that it planned to stop adding to its bond holdings in October, in a sign of its confidence that the economy is gaining strength even as the central bank gradually withdraws its support.
via New York Times Fed, Confident in Economy, Details End of Bond-Buying Program – NYTimes.com.
Housing starts exceeded one million for first time since last year and housing permits were over one million for a third consecutive month. The increases were almost entirely in multifamily rental construction.
Multifamily construction soared 40% to 423,000 starts, the highest since January 2006 and permits also rose 20% to 478,000, the highest in almost six years. Multifamily starts were particularly strong in the Midwest where they more than doubled from an unusually low 42,000 to 100,000.
BY Margaret Chadbourn, Reuters
(MAY 15, 2014) – A Senate panel on Thursday approved legislation to wind down Fannie Mae and Freddie Mac and redesign the U.S. mortgage finance system, but sparse support among Democrats means the measure is unlikely to make it into law.
BY Patti Domm, CNBC
[MAY 14, 2014 ]Global bond yields are in a deep slide, taking the 10-year U.S. Treasury to a level not seen since October—well before the Fed began winding down its easy money program.
The common themes are accommodating central bankers and concerns about growth. In the U.S. a short position in Treasurys continues to support the market as investors are forced to cover with each notch higher in price and lower in yield. Yields were lower across the curve, but the 10-year yield broke below a range that it has held since the end of October, touching a low yield of 2.52 percent.