Obviously new lending rules were needed to curb the losses of hundreds of lenders that are now out of business. But, in my opinion, the 4 property rule is ridiculous. In fact, this rule borders on Socialism. The 4 property rule severely hinders the ability of a real estate investor to continue doing business.

So, what specifically is the 4 property rule? Essentially, the new rules of conventional lending state that a person will be limited to four financed properties at one time. Again, this is a thoroughly absurd rule that undermines many benefits of real estate investing. Basically, if you are limited to only four financed homes, you can not flip property in vast numbers.

Specifically, if you are still financing your primary residence, you can only flip three properties if they are currently being financed! Again, this type of rule does very little for aiding investment circles. Really, it is a form of protectionism. And, as history shows, protectionism has the inverse consequence of what it was originally intended. That is to say, it does nothing to help the market and overall economy. Instead, the 4 property rule can significantly weaken the economy.

Before the subprime meltdown, investors took advantage of rapidly increasing real estate values. They would purchase properties at low prices and then sell high. Sometimes, real estate investors purchased huge volumes of properties to resell. The affordable housing they provided had a positive impact on our economy.

If the 4 property rule went away, there would be many positive effects. First, real estate investors would have to put their profits somewhere and my bet is they would go to the stock market. That in itself would provide a huge amount of liquidity. It would also fill up the tax coffers. And, of course, the wealth created would lead to more real estate being purchased thus improving values overall. The 4 property rule accomplishes none of this. I hope this rule will be overturned so we investors can fully participate in and contribute to the economic recovery.

Then again, regardless of whether or not this rule is revoked, portfolio lenders are not restricted to such a rule. If you wish to seek massive financing, a portfolio lender is the lender to visit.

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One thing to bear in mind when venturing on a property investment like this is the total month duration times of the high and low seasons. In Northern Cyprus for example, the low season lasts just five months and the high season stretches over seven months. To put the icing on the cake, there are over 300 sunny days a year, allowing thousands of travel makers the luxury of all year round holidays in places like Northern Cyprus.

So let’s quickly run through a nice example of what it will cost you. Let’s say you looking for a property in the value of Euro 250,000, which you can get with a very nice sea view. If you’re buying new then you’ll have to put a reservation fee down for Euro 3000 and this will hold the property for you. After that you’ll have to put a 30% deposit down so that will be around Euro 75,000, don’t forget you have to take the Euro3000 off which you have already paid.

So your remaining amount for your mortgage is Euro 175,000. Now you can get a wide range of mortgages so it’s best to shop around, I have seen them as low as 4.25%, so I’m going to base mine on this. Your monthly mortgage repayments will be around Euro 800. You must remember and this is very important make sure you only get an interest only mortgage. So if you do the sums over a 12 month period you’ll be paying out around Euro 9600.00.

The statistics available on rental income in Northern Cyprus show that properties can be let out for up to 10 months per year. So if we put the property we have just bought into the equation, we can expect an amazing 2600 Euro. in the high season and an awesome 1500 Euro. over the low season.

Right, now let’s expand on that and if you rent out for 6 months during the high season and just 4 during the low season, you would rake in an amazing 21.600 Euro in rental income. Things are looking good already but out of that we must account for certain payments such as rental management and community fees, so make sure you find a recommended property management agency, although the costs will not succeed 1000 Euro. per year.

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History and evolution There is a long history of institutional investment in real estate both through direct ownership of property and through pooled investment funds. Initially institutional real estate investments were in core real estate, however, market conditions in the early 1990s led to the emergence of opportunistic funds which aimed to take advantage of falling property prices to acquire assets at significant discounts.[1] Private equity real estate emerged as an independent asset class in the beginning of the 21st century and has experienced huge growth in recent years. Strategies Private equity real estate funds generally follow core-plus, value added, or opportunistic strategies when making investments.

Core Plus: This is a moderate risk/moderate return strategy. The fund will generally invest in core properties, however some of these properties will require some form of enhancement or value-added element. Value Added: This is a medium-to-high risk/medium-to-high return strategy. It will involve buying a property, improving it in some way, and selling it at an opportune time for a gain. Properties are considered value added when they exhibit management or operational problems, require physical improvement, and/or suffer from capital constraints.

Opportunistic: This is a high risk/high return strategy. The properties will require a high degree of enhancement. This strategy may also involve investments in development, raw land, and niche property sectors. Investments are tactical. Features Considerations for investing in private equity real estate funds relative to other forms of investment

Include: Substantial entry costs, with most funds requiring significant initial investment (usually upwards of $1,000,000) plus further investment for the first few years of the fund. Investments in limited partnership interests (which is the dominant legal form of private equity real estate funds) are referred to as “illiquid” investment’s, which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money, as it is locked-up in long-term investments, which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made. If a private equity real estate firm can’t find suitable investment opportunities, it will not draw on an investor’s commitment. Given the risks associated with private equity real estate investments, an investor can lose all of its investment if the fund performs badly.

For the above-mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns, which are often above 20% for successful opportunistic funds. Investors in private equity real estate funds tend, therefore, to be institutional investors or high net worth individuals.

Size of Industry

The popularity of private equity real estate funds has grown since 2000 as an increasing number of investors commit more capital to the asset class. In 2000 private equity real estate funds raised $12 billion in equity commitments from investors. By 2005 this had increased to $58 billion and in 2007 private equity real estate funds raised a total of $79 billion. Private Equity Real Estate is a global asset class and in 2007, 46% of capital raised was focused on the US, 26% was focused on Europe and 27% was targeting Asia and the rest of the world. By providing online real time services one on one client attention is always in mind.

There is a requirement for needed experience to switch to self-directed retirement plans; The investment Group can help investors chart a new – and potentially more profitable – course for their retirement years.

The investment Group that finds sound investments for self-directed Individual Retirement Arrangements (IRAs), KEOGHs, and SEPs fund inreal estate trust deeds note opportunities in limited partnerships.

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We are investment real estate brokers and have been in business doing this since 2002. In 2002 we started working with IRA clients to assist them in finding appropriate investments in the real estate arena.

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The Groups clients give direction on what it is they would like to purchase; when the Group finds it they do a complete analysis of the investment and forward their due diligence to the respective clients. The client can review the information, take it to any other advisors they have and make a decision. If they wish to purchase the product the Group will go forward with the acquisition. If not, the Group finds another investment property for the clients review.

On occasion their clients have requested that they pay their fee’s on real estate acquisitions and then work as a buyer’s broker. As a free service to their IRA clients who use their investment services, the Group assist them in finding the correct custodian to service their account. Not all custodians are the same and it is vitally important to choose the right one the first time. In Today’s world, to make things happen now, we need to be in Real Time Mode for your Clients

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