creiZ about Real Estate and Deals

Equity Fund buys S&L home loans

I wish I had a $1 billion pool that I could tap for investing in distressed real estate over the next decade...

Anyone want to start one? I bring the sweat equity, you can bring the capital. :)

Posted by eMarv at 05:25 PM | Permalink | Comments (0) | TrackBacks (0)

On my way back from Safeway this morning after buying about a week's worth of milk (in other words 6 gallons, hey I've got 4 kids and it's just past noon and half a gallon is gone already... but anyway), on my way back home I passed by Michaels and saw a bunch of Christmas wreaths selling for 90 cents each. These are normally about $5 to $10 wreaths at the peak of the Christmas season. If someone or even maybe a Christmas store (you know those that only open for a couple of months at the end of the year) bought these and held them till the end of the year, they could probably make a killing. They could probably have an ROI in the few hundreds.

Rather than stopping and buying 100 wreaths (since I know my wife would not be too happy seeing 100 wreaths in the garage), I got to thinking how much the wreaths were like discounted real estate/REO properties (or in general any discounted asset that is out of season). The subprime mess (among other things) in the United States has caused a glut of residential real estate to fall out of season.

As with wreaths, residential real estate will be back in season eventually. The time frame may not be the same since wreaths will most likely be back in season in the latter part of year and residential real estate may or may not recover some, but it will recover. It always does. It is, to use Warren Buffett's words, a "high-probability event" that residential real estate will be back to where it was 1.5 to 2 years ago. It may just take 1, 2, 3 or more (or less) years to get there.

So imagine the returns those that buy now at 40 to 70 cents on the dollar will see once the residential real estate market is back up again. It may not be in the hundreds as with wreaths, but in the 30s to 50s shouldn't be too bad.

Could this be of interest? If not, I can definitely find you some wreaths that available for pennies on the dollar. You can open up your own Christmas store and you'd make a killing!

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Tags: high-probabilityevent, distressed investment sourcing, distressed asset investing, bulk reo, loan portfolios, note portfolios, warren buffet, reo properties, reo portfolios, discounted property, mortgage trading, commercial portfolios, investment portfolios

Posted by eMarv at 02:13 PM | Permalink | Comments (0) | TrackBacks (0)

The purpose of this video is to introduce Corea Properties' strategy for acquiring commercial and residential real estate properties portfolios in the United States (initially in the Washington DC Metropolitan area) and to obtain debt and equity financing for the portfolio acquisitions. (Call +1-240-441-5086 if interested or have direct sources of debt and equity financing that may be interested.)

Posted by eMarv at 02:26 AM | Permalink | Comments (0) | TrackBacks (0)

OK, YouTube isn't so secret, but for much of the commercial real estate world, it seems like it is a secret except for Scott Smith, CCIM. In the November/December 2007 issue of Commercial Investment Real Estate (the CCIM Institute's magazine), Scott discusses how he uses YouTube:

Using this site for marketing has helped Smith broaden his audience and appeal to younger customers who now use Web-based programs on a daily basis, he explains. “Now I have calls and e-mails from all over the country requesting educational, consulting, and brokerage services,” Smith says.

Can't beat that! As you may have seen, I've used real estate videos before, but not to the extent that Scott. Looks like it is time to start shooting more videos...

So what do you think, will YouTube take over commercial real estate marketing? 

Posted by eMarv at 09:44 PM | Permalink | Comments (0) | TrackBacks (0)

Posted by eMarv at 08:53 PM | Permalink | Comments (0) | TrackBacks (0)

for 5306 Wendley, click here. 

I am buying $10 million worth of bank-owned properties that need little to no work in Maryland (Anne Arundel, Prince Georges, Montgomery & Howard counties and Baltimore City and County) for cheap and I am wholesaling them. Wholesale prices starting at $165,000+ with retail prices of $250,000+. I will have properties in 21076, 21228, 21045, 21144, 21113, 21075, 21061, 21060, 21228, 21229 and many others. You can find more details about this great Maryland real estate deal here: http://esenai.com/real_estate_deals/66_cents_deal.pdf

Email or call me, if interested, or if you have a particular that you are interested in and if you'd like a copy of the Letter of Interest.

Much Success!

Marvin "eMarv" Corea
240-441-5086
mcorea@yahoo.com
mcorea@esenai.com

licensed MD agent

Broker's Protected!
EHO

Posted by eMarv at 09:22 AM | Permalink | Comments (0) | TrackBacks (0)

The short answer is: I'd buy a $1 million apartment complex that needs work (not too hard to find) or a small shopping center that needs work (a little more difficult to find for that price).

Some questions you may have:

Q: Why don't you buy a single family rental for cash?

A: Simple, cash is king and the more I can leverage it, the better. Why tie up 200K in one house? I wouldn't be fully utilizing one of the benefits of real estate: leverage. A key ratio that I use here is cash-on-cash return. Below is a classic (oversimplified) example that I'm sure many have seen in real estate books. (I know I have. :)

So which one looks better on paper (well, actually on the web)? Naturally, the 20-Unit Apartment Building scenario does. Of course, there are many other things that you need to consider because now you are getting into the semi-pro league, so you have to be more diligent in everything or hire someone that can help (psst, I can help :). In the apartment building game, lenders will not be as worried about your personal credit score as much as they are worried about whether the property will be profitable. It will be a factor, especially in the smaller apartment complexes, but they want to ensure you have your share of equity (i.e. cash) in the property and that its profitable. There's a lot more to investing in apartment buildings, but this is a quick summary.

Something else that you may have caught is that I would look for an apartment building or shopping center that needs work. Why? For the same reason that you would buy an ugly property, to get a bargain deal and then add significant value. One caution on this though is that there are fewer lenders that will lend on this type of property, but they're still out there. Another option for financing commercial properties that need work is to joint venture with larger investment companies. (They're out there. I've seen them.)

Q: Why don't you buy an ugly single family house to rehab and resell for cash?

A: So the single family house is not a rental and I am actually remodeling and reselling the property quickly (withing 6 months, but ideally within 3), then I may consider paying cash for it to get an excellent deal. Even so, I think I'd still lean towards longer-term income since taxes are not as high (think short-term vs long-term capital gains tax) and you have more control over the property because when doing a remodel and resell, you are at the mercy of the market especially if it's a buyer's market.

Q: Why not just invest in stocks?

A: I like stocks. They're fun to watch when prices are going your way. The problem is when they go in the opposite direction! Another issue that I have is that I really don't have any control over the stock, whereas with real estate, I do.

Q: Why not invest in a startup?

A: Now, you got me. Depending on the situation, I would rather invest in a startup, than in real estate. Personally, I haven't done it on my own. I have invested with an angel group before. Why not on my own? Because just like in real estate, there's a lot of due diligence that needs to be done to ensure that that the startup is a viable investment. Even after diligence though, nothing's ever 100% sure. One potential disadvantage is that you may not see a return (if any) for a while (think years, not months). But just imagine, owning a little piece of the next Google...

Before I digress to much further into startup land...let me say this, every individual's situation is unique. So even though what I wrote above may sound logical (or not), in your specific situation, it may not be.

***Warning-Sales Pitch***

So consult, your tax and legal professional and when they tell you that what I mention above makes sense :), call or email me and we can create your unique investment experience.

Posted by eMarv at 11:35 PM | Permalink | Comments (0) | TrackBacks (0)

UPDATE: Take a look at the new and improved 5306 Wendley house. Please tell us what you think.

We went to closing at 3pm at Cross Country Settlements (not recommended) of Hanover, MD. (This is another Baltimore remodeling job.) I must say that this is one of the faster closings I've ever been to. We were finished signing our last papers around 3:35pm! More to follow...

BTW, let me know if you have any leads on the Alameda property. I am working with agents and offering a FREE plasma TV at closing.

Posted by eMarv at 09:06 PM | Permalink | Comments (0) | TrackBacks (0)

I just came across a site to search Austin New Homes that some of you might be interested in especially if you are looking for new homes in Austin, Texas area. It allows you to search the floors plans of six Austin area builders, Gavurnik Builders, DR Horton, Centex, Kimball Hill Homes, Capital Pacific Homes and Armadillo Homes. You can search by model type, number of bedrooms and total square footage. DR Horton, for example, has 20 communities to select from in the Austin area.

One thing that would be a nice feature to include on the web site would be a floor plan comparison feature where people could select several floor plans from multiple builders and be able to see the square footage, the number of bedrooms, bathrooms, a list of amenities (like if the community has a pool, is gated, has a community playground, offers 24-hour security, parking, etc.) and the location of the communities. Another nice bonus that I'm sure a lot of people are used to seeing now is the ability to map the communities so that you can see where the communities are in relation to each other. Demographics would also be nice, but you can't have everything, right? :)

Sponsored by: ReviewMe 

Posted by eMarv at 11:22 AM | Permalink | Comments (0) | TrackBacks (0)

LIVE/WORK SPACE WITH LIGHT OFFICE ZONING

Walk to downtown and Town Lake!!

Perfect for a realtor, accountant, architect, insurance, life counselor, massage therapist - any kind of low-traffic home based business where having downtown and Town Lake at your doorstep makes this a project worth completing! Property in this neighborhood is appreciating at an amazing rate!

Buy this UNFINISHED remodel project, finish it yourself for less than you can buy completed remodel and suit YOUR taste in finish out!

Lot size 46' x 117, has 6 beautiful mature pecan trees that form a 60 foot canopy of deep shade over entire lot.

Scope of completed work:
Demo done
New floorplan framed in, architects design, 3/2.5 of 1480 sq ft
Foundation rebuilt
Master suite addition roughed in
Metal roof complete
New wooden fence
Some plumbing, electrical, and HVAC work complete
Some materials included in sale ( wood, concrete)
Recent electrical service panel and meter
Recent gas meter
Insulated windows
Hardisiding exterior, unpainted
Full light, insulated wood doors on front and side, full light french doors in master View Map

Price: $299,000

Here is a pic (click on the pic below to see all of them on photobucket):

I currently have it listed with Laura (not recommended), an Austin Realtor, but feel free to email me for more details.

Posted by eMarv at 06:34 PM | Permalink | Comments (0) | TrackBacks (0)

QUICK LINKS: See 4132 The Alameda pictures and a video of the house.

Unfortunately, the buyer was not able to obtain financing for 4132 The Alameda in Baltimore and had to back out of the contract so its back on the market. To make things easier this time, I am offering owner financing. (However, you can still get your own if you'd like.)

Please read below for more details about this property and to see a video. Call me if you'd like to see it in person. I look forward to hearing from you!

Posted by eMarv at 02:57 AM | Permalink | Comments (0) | TrackBacks (0)

I recently an article in the Global Real Estate Monitor titles "Counting on rent increases and value-added plays. Firstly, what drew me to the article was the title and the fact that it had value-add plays in it because those of are the types of properties I am looking for. Unfortunately though, it seems that more and more people are starting to use the term to classify many other real estate parcels that are not really value-add plays, but that's a blog post for another day... As I was saying I read through the article and came across the last paragraph, which follows:

“The value play is like a marriage, it’s in the eyes of the beholder,” says David Cohen, the Northeast Regional Director with GE Real Estate’s North America Lending Group in New York. “The sophisticated value-added buyers have some distinctive insight and knowledge, seeing something that somebody else did not, and because of that, they are going to be able to create value over the short or medium term to enhance the asset.”

So now as I reread the paragraph, maybe I understand why the term value-add is being used more often. It's because in the eyes of the seller, it looks like a value-add play. Which really begs the question: Why isn't the seller taking advantage of the value-add opp? Does it really matter? Yes, because if the seller is not interested because they realized that, for example, it was going to be impossible to get a zoning change after they bought the property (which they probably shouldn't have bought in the first place), then that is a good bit of information to know. And when I think about, in this case, the seller shouln't even mention that it is a value add play...

So is anyone out there looking for value-add plays? Or does anyone have any value-add opps? I am mainly interested in ugly value-adds, managing them and finding institutional investors that are looking for value-add plays...

Posted by eMarv at 07:24 PM | Permalink | Comments (0) | TrackBacks (0)

Now I need to find more ugly properties. Let me know if you come across any ugly properties (rehab/remodel candidates) in Baltimore. I will happily pay a finder's fee when I close on the property. Comments Welcome!

Posted by eMarv at 06:00 PM | Permalink | Comments (0) | TrackBacks (0)

Posted by eMarv at 08:13 PM | Permalink | Comments (0) | TrackBacks (0)

I am almost done with the remodeling work at 4132 The Alameda, Baltimore, MD 21218 and posting information about it. You can find it on MLS at BA6329680. Here's what I posted on Zillow about the house:

What curb appeal! Be the envy of the neighborhood! Beautifully landscaped front garden and trimmed front bushes. New Anderson screen door. New locks. Refinished hardwood floors in the dining and living room. New living room lights. Marvelous and new kitchen and dining room space. Nothing else like it on the block! Over 10 more linear feet of countertop and cabinet space. New silver metallic refrigerator. New stainless steel oven and range and microwave/range hood combo. New carpet upstairs. Redone upstairs bathroom with HUGE mirror and new vanity sink and lights. New window air conditioners. Newly tiled basement bathroom shower. New basement paneling. Newly upgraded wiring. What more can you ask for?

Neighborhood description: Excellent location between in between Johns Hopkins & Morgan State Universities & Notre Dame & Loyola Colleges. Right on the bus line!

Neighborhood: near the intersection of the Original Northwood, Pen Lucy and Waverly neighborhoods 

I will post pictures and probably a video up here shortly...

Baltimore house, northeast Baltimore house,  house close to Johns Hopkins, house close to Morgan State University, remodeled Baltimore house, new Baltimore house, Waverly houses, Pen Lucy houses, Original Northwood houses, house close to public transportation in Baltimore

Posted by eMarv at 08:53 AM | Permalink | Comments (0) | TrackBacks (0)

I was just reading the "Welcome to Metropolis" article in Retail Traffic magazine. The article states that "MacFarlane already has 2.2 billion to invest. Meanwhile, DLC Management Corp. Has joined with G.L. Blackstone & Associates to form DLC UrbanCore LLC and is sitting on $100 million in capital." Imagine that! (I wish I had $100M to sit on!) I actually know of a couple of potential infill sites in Baltimore that could be ideal for redevelopment. In particular I know of one on the west side of Baltimore that currently has a number of vacant buildings. There are also vacant warehouses in several Baltimore areas that could be redeveloped.

So if anyone that reads this blog works for (or knows) any of the inner city developers, let them know I have candidate sites for them.

BTW, for those that are not convinced about inner city retail, here's an impressive stat from the retail traffic article:
"In 2002, ...inner city shoppers went outside their neighborhoods to buy $42 billion in goods, or 25 percent of the total $122 billion retail demand of those consumers, according to a study for the Boston-based Initiative for Competitive Inner City by Boston Consulting Group Analytics with Claritas Inc."

Another benefit (according to executives in the know) is the good returns. G. Lamont Blackstone of UrbanCore states that they are exceeding 13 percent returns and Victor MacFarlane says "the return rate for an initial $50 million (of a total $3 billion) invested by the California Public Employees' Retirement System was 30 percent in 1996."

Still not convinced, here's another extract from the article:

Baldwin Hills-and other inner city successes like Harlem USA, and Gulfgate Center in Houston-are convincing a widening pool of players that investment in minority communities is a good bet. "It will increasingly become mainstream as retailers recognize that there are few other commercial real estate opportunities in this country of the magnitude these present," says Capri CEO and Chairman Quinton Primo, III.

So where are the big inner city players looking next? (I thought you'd never ask... :)

According to Retail Traffic, they are looking in Seattle, Phoenix, Tucson, Dallas, Denver, Fort Worth, Austin, Fort Lauderdale, Tampa, Miami and Jacksonville. While Pittsburgh, Philadelphia and Detroit are flat.

So do YOU know of good potential inner city retail sites in a city near you?

Posted by eMarv at 03:03 PM | Permalink | Comments (0) | TrackBacks (0)

From the Houston Business Journal: More jobs were created in Houston between January 2006 and January 2007 than in any other metropolitan area in the nation, new figures show. "The [US Bureau of Labor and Statistics] numbers show Houston on a dramatic growth trend, outpacing the rest of the nation in jobs gained," said Jeff Moseley, president and CEO of the Greater Houston Partnership. "This is great news for our region and further validates our board's vision of contributing to the creation of 600,000 new jobs and $60 billion in capital investment by 2015."

what this means for Houston real estate:

It means that there will be some growth in practically all Houston real estate sectors. After all, where are 600,000 people going to live, work, play and shop? One of the things that concerns me the most about Houston (which is probably the case with a lot of metro areas) is traffic. Downtown real estate is going to continue to increase in value so where will the majority of people (in the low to mid income range) end up looking for houses? More often than not they will probably be looking for real estate in the suburbs as property gets more and more expensive closer to downtown. (Remember, expensive is relative to Houston because you can still find decent single family homes under $200,000 within the main city limits whereas in DC, well...you'd be lucky to find a good 1 bedroom condo for that price!) So back to the topic...what this means is that there will continue to be more and more traffic! Naturally, developers and city of Houston and Harris County officials need to continue addressing the traffic issues immediately. Expand on the positive that Houston is already working on which Tory Gattis talks about in his houston strategies blog.

Personally, I think that more mixed used the development would be helpful. In many areas it is practically impossible to find places that you could actually walk to from home or work (except in the downtown areas). It'd be nice to actually walk to places without having to take a car everywhere and always have to find parking. I know that a common argument against this might be that it is way too hot to being walking outdoors in Houston, especially in the summer, but a good integration of trees would help too. (And according to Tory and the Houston chronicle, it looks like that is starting to happen too.) Only time will tell...

shameless plug: And I hope that my company can be a part of the Houston's future in the near future!

Posted by eMarv at 05:00 PM | Permalink | Comments (1) | TrackBacks (0)

According to the Austin Business Journal: Prevention magazine and the American Podiatric Medical Association have named Austin the second best city in the country for fitness and walking.

"While it's nice to receive accolades, in my opinion, we're nowhere near as pedestrian-friendly as we need to be," says Austin Mayor Will Wynn. "Fortunately, the continued revitalization and repopulation of downtown, as well as other developments like the Triangle and the old Mueller Airport, are big steps in the right direction."

comments: so what does it boil down to real estate, if Austin developers and the City do not develop properties in a citizen friendly way, Austin would have no chance at this recognition. And what does that mean for the future of Austin, only good news really. Many people are looking for this type of environment and where there are more people, more employers and retailers will start appearing or expanding. Really, these are all positive signs for the Austin residential and commercial markets. Let's just hope that they don't grow too quickly...

Interested in finding out more about the Austin market or investing in real estate there, contact me. 

Posted by eMarv at 03:14 PM | Permalink | Comments (0) | TrackBacks (0)

How about flipping a $7 billion office portfolio in 48 hours? I wouldn't mind that! According to the National Real Estate Investor website, "[r]umors of this side deal were first reported in the Wall Street Journal [on Feb 8, 2007]." (And I bet that they didn't even have to replace a kitchen! :)

The office space is being acquired by Harry Macklowe who already owns 6 million square feet of space in Manhattan. Real estate investor Larry Fiedler also suggests that up to 25% of Blackstone's ~$39 billion  acquisition could be sold to Vornado Realty Trust, Starwood Capital and/or Walton Street Capital over the next few weeks. Wow!

Posted by eMarv at 08:10 PM | Permalink | Comments (0) | TrackBacks (0)

We will contact you shortly regarding your request.

If you believe you have arrived at this page in error and are interested in commercial real estate financing, please see the commercial real estate financing page.

You can also visit the creiZ.com real estate blog.

Posted by eMarv at 11:41 PM | Permalink | Comments (0) | TrackBacks (0)

Thank you for visiting Esenai Capital for your value-add commercial real estate financing needs. Esenai Capital specializes in sourcing debt and equity financing for our clients for opportunistic real estate invesments with the following guidelines:

• Eligible Property Locations: Major markets in the United States.
• Deal Size: Above $500,000.

Please complete the form below.

The intent of the following form is to provide Esenai Capital with preliminary information regarding your financing needs. Once this simple form is submitted we will contact you within 24 hours to discuss your needs in greater detail:

Posted by eMarv at 06:37 PM | Permalink | Comments (0) | TrackBacks (0)

FOCUS

Our primary area of focus is in finding opportunistic (i.e. value-add or as-is) multi-family real estate properties in the United States where we can increase the value of a property by 25%-50% (or more) through physical and managerial improvements.

PARTNERING 

We are interested in partnering with institutional, international and other accredited investors that are looking for higher yields than typical turn-key real estate investment properties can provide. Whereas a NNN leased single tenant office building can provide cash-on-cash return in a major market of 10% or less, we are able to obtain cash-on-cash returns of 20% or better (i.e. twice as much as an average cash-on-cash return).

OPPORTUNISTIC INVESTMENTS

Interested in Opportunistic Investments? 

CONTACT US IF YOU READY TO INVEST FOR GREATER RETURNS

240-441-5086

mcorea [at] esenai [dot] com 

Posted by eMarv at 03:02 AM | Permalink | Comments (0) | TrackBacks (0)