Investment Articles

There are different strategies and choices when it comes to investing in mortgage notes for the note buyer. Among one of these choices is the lien position the actual mortgage note is in when purchasing a mortgage note for sale. The lien position dictates the order in which the debt gets paid. For a note buyer, entering a second lien position is cheaper than a first lien position, in the secondary mortgage market, since it is second to get paid. The fact that it is cheaper allows a greater profit to be achieved.

As stated, second lien mortgage notes are in the second position. They could have been originated to purchase the home, or it may be a home equity line of credit. However they were originated, they are second to get paid after a first lien is paid off. Investing in second liens can be very risky but also very lucrative as well.

The whole game in the second lien game is buying right. The note buyer makes his money on the purchase. A responsible homeowner wants to save his home and buying the right second lien mortgage note can lead to great profits if the note buyer aligns his investment with the right type of homeowner. Second liens can be bought for a fraction of first liens and thus allow for a healthy return when the note re-performs again.

There are many factors when considering to enter a second lien position. The performance of the first lien note, the equity in the property and neighborhood trends.

The performance of the first lien is important because this gives insight to what is in the mind of the homeowner. A non performing mortgage note in the first position usually means the homeowner is having very tough times or it may be that he feels that the property dropped so much in value that he feels that is not worth it to continue to pay the mortgages.

Equity in the property is important since it is what guards the note buyer’s investment as well as his profit in the event the homeowner is unwilling to work with him. As a last resort, the note buyer can foreclose on the property to recoup your investment.

Neighborhood trends will give you insight on how quick you need to act on your investment. In a down trending neighborhood yo have to move to protect your position quick whereas in an up-trending neighborhood your investment gets better with time.

So with a few precautions, a note buyer can be very successful with purchasing second lien mortgages.

Apollo Financial Group is a company that has Mortgage Notes For Sale. They carry first and second lien mortgage notes.

As the UK heads into a period of extended inflation, low interest rates and volatile stock markets, investors are looking for safe investments to preserve and grow capital. Many investors are turning to gold as prices continue to rise due to an increasing demand from investors, but more savvy money men consider farmland to be the safest investment in 2010 as demand for food continues to rise and a severe shortage on the supply side continues to push up prices and create safer investment returns.

Farmland is considering a safe investment as it is a renewable resource, constantly reproducing the commodities that the population needs – food! Therefore consistently generating an income for landowners and retaining its value, especially in times of inflation.

The value of agricultural land in the UK has risen by 13% for the first six months of 2010, and by 19.7% for the twelve months to July according to the Knight Frank Farmland Index, the industry standard for measuring agricultural land values. In fact there has not been a single seven year period since records began, where farmland in the UK has not risen in value quicker than the rate of inflation, providing safe investment returns for landowners. The income generated from leasing good quality land to commercial farmers also goes some way to replacing the lost risk-free income on cash deposits due to such low interest rates.

There is always of course an element of risk, land values could fall for example, but as demand for food is rising at the fastest pace in history and the amount of land per person on the planet has halved from 0.42 hectares to 0.21 hectares, the next seven years is extremely unlikely to be the first time that agricultural land values will fall. There is also a risk that your farming tenant could default on his rent, but this risk is also minimal as agricultural occupancy rates in the UK are close to 100% year round.

So those investors looking for the safest investment possible should carefully consider whether a well-place agriculture investment in the form of good quality farmland will have a good fit for their portfolio, It would certainly provide growth and income and a very low risk profile.

To learn more about investing in agricultural land, or farmland as an inflation hedge, download the Agricultural Investment Guide at www.dgc-ai.com/btl-farmland

David Garner in Managing Partner at DGC Business Consulting – http://www.dgc-ai.com – a property investment boutique for high-net-worth investors. DGC specialise in sourcing off-market assets at deep discounts to valautions and design and deliver innovative low-risk pruchase and holding structures designed to minimise risk and maximise the potential for upside returns.

The common consensus among the Bank of England and economists is that the UK is heading for a period of extended inflation up to 2012/2013, and savvy investors are looking for alternative assets that are proved to grow in value quicker than inflation rises, effectively hedging inflation as part of their overall investment strategy. These inflation investments should be designed to provide income and preserve capital at a time when short term market visibility is at an all time low, and quantative easing programmes combined with low interest rates start to squeeze the value out of cash as inflation rises.

Historically investors looking for an inflation hedge have turned to Gold, seeing the precious metal as a safe investment that will hold its value, even in uncertain economic times. The value of gold is a market led by supply and demand, there is only a finite amount of gold on the market, ands as demand rises, so too does the price per ounce.

The problem with gold as an investment is that it is essentially a useless commodity and is used mostly for the purposes of storing cash as an asset, and more and more investors are now investing in farmland as this asset exhibits the same characteristics as precious metals, yet will always remain in demand from a growing population demanding more food, ensuring that farmland investment is supported by rock solid fundamentals and landowners have in their possession an asset that will always command a price regardless of the happenings within financial markets.

Farmland is an almost perfect inflation hedge investment, as agricultural land values have continued to rise for the last ten years. There has in fact not been a single seven year period that farmland values in the UK have fallen since record began, and as the demand for food is rising at the fastest pace in history, the next seven years is extremely unlikely to be the first time that happens.

As agricultural land also provides a stable consistent income in the form of a rental yield when leasing the land to a commercial farmer, this asset class also goes some way to replacing the income lost due to low interest rates.

In short, agricultural land provide investors with a near perfect inflation hedge, stable income, and remain very liquid as only 0.1% of farmland changes hands in the UK each year, making good quality land hard to find, further limiting supply and supporting future values. Generally speaking, good quality farmland will sell within 90 days depending on location and grade etc.

To learn more about investing in agricultural land, or farmland as an inflation hedge, download the Agricultural Investment Guide at www.dgc-ai.com/btl-farmland

About the Author:

David Garner in Managing Partner at DGC Business Consulting, (http://www.dgc-ai.com) a boutique property advisory for high-net-worth investors. DGC source property assets at deep discounts to valuation and design and deliver proprietary investment structures allowing investors to acquire off-market assets fro income and growth.

Not all private equity firm databases are created equal.  Within the PE industry there numerous resources available for individuals looking to increase their media circulation, increase their capital raising and continue to cultivate relationships within the private equity space.  Due to the high volume of firms within the industry, systems have been created to help categorize and input contact information on both the businesses themselves and key personnel within the firms.

What to expect- As mentioned previously, there are many different types of databases, directories and listings which aim to organize knowledge and contact information about each firm in the PE and buyout firm space.  Regardless of the delivery of the information, the following items are integral in any top of the line, PE directory or database of firms.

Business information- Information regarding the physical mailing address and office location, office phone number, office fax number, internet website address and assets under management (AUM) are often included within the business information.  The information included within this section is often overlooked due to its general nature.  However, the business information especially the AUM allows for a more complete categorization of the PE firms.
Personnel information- Information regarding at least two key executive or principal is included within this section.  Contact details such as professional titles, personal e-mail addresses, personal office phone numbers, and personal cell phone numbers are often found.
In addition, some services include information about the PE or buyout firms, which allow users to better target and focus their resources and strategies.

The previously mentioned items are but a few of the key aspects which you should expect to find included within a professionally made and updated resource.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com

The following article is focused on exploring the top 3 reasons to get a private equity firm database. Within the PE industry there are very few resources available which provide information regarding various firms and their subsequent contact information. This shortcoming of information and the painstaking process of gathering contact details have created a need for the creation and development of databases, directories and listings.

Navigation- In today’s fast paced society, it is essential to know your way around the industry and know which firms you and your business show focus our time and resources upon. Through the purchase of a PE firm database, you have access to thousands of potential prospects and gain the ability to navigate through the possibilities and find the firms which fit your specifications and are the right targets for you and your team in hopes of raising additional capital.

Foresight- Through the purchase of a PE database, you gain the ability and opportunity to forge ahead of the competition in the industry. The foresight needed to understand the need for greater efficiency is realized when you begin using an extensive database. Often, individuals do not need to work harder; they just need to work more efficiently. Spend time working towards that next goal and leave the grueling task of creating lists of potential prospects to someone better suited.

Peace of Mind- Most businesses which create databases and directories of business contact details incorporate either a monthly access option or quarterly updates for a certain length of time. These timely additions to the product allow, you and your team to continue doing what you do best without worrying about the information you purchased becoming outdated.

The previous mentioned top 3 reasons to purchase and incorporate a private equity database for use by both you and your team have many applications. The benefits of gaining navigation within the industry, foresight and peace of mind are the key reasons to purchasing a database or directory of private equity firms.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com

A common question is how the information provided within private equity firm directory or database resources is gathered. While this is enormous topic to discuss where over 1,000 individual PE or buyout firms are found and how over 18,000 fields of data are filled we have narrowed it down to the top 3 private equity firm directory resources.

Relationships- The first and greatest source of provided information contained within the PE firm directory resource comes the professional and personal relationships made throughout the industry. They key to developing a complete directory of PE firm listings is the need for key personnel contact names within the directory resource along with a way to contact those individuals. The personal office phone numbers, personal cell numbers and personal e-mail addresses are usually given to trusted individuals who they know will use the information for professional purposes. It is though the cultivation of these relationships that in depth and professional quality databases are able to made and updated.

Conferences- During each national and international meetings, personal meetings and interviews with various PE firms allow for the continued creation of these resource lists. However, it is interesting to note the interconnected relationship within the PE industry. The brief and initial meetings made at these conferences often develop into the relationships described in item #1.

Internet- Lastly, the internet has allowed for instantaneous searches into new information and press releases on news within the private industry. In today’s technological and knowledge based society, it is necessary to keep an online presence in order to compete.

Relationships, conferences and the internet are the top 3 sources of information which are used to create PE firm directories and other resources. Each of these categories are used and cultivated to create and develop professional, high-end database and directory resources on PE and buyout firms.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com

Typically, when purchasing a database or directory filled with listings and information on private equity firms, you receive an assortment of information.  This information usually comes with either online access to a database of PE or buyout firms, or even better, the electronic file is sent to you for your own uses.  In addition to the database or directory access of information on PE firms, some business will often include bonuses if you choose to purchase their product.

Bonuses- the bonuses often offered with the purchase of the database include added enticement to the purchase.  Some companies create databases for other business ventures as well and might offer those contact details as well.  Often businesses and organizations will purchase databases or directories as package deals to cut down on the costs if they were bought separately.

In addition to the initial files or access granted, some forms of updates are made for a certain length of time.  For example, with online access to a database the membership to the site will only be for 12 months where the company that sends you their database, might offer 2 years of subsequent updates and releases for the database.  

Lastly, some database and directory creating companies will set different payment levels for the database options.  The higher amount you pay, the greater the discount on the overall package and amount of bonuses added to the deal.  These types of bonuses are important to watch out for when deciding between different products.  Always make sure to weigh the options so that the final decision takes into account the entire package detail and not just the initial overview.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com

 Within the private equity industry space there is no comprehensive list or database of PE firms or buyout firms.  The value of such a product restricts its ability to be offered at no cost.  Unfortunately, there is no free and available resource which allows someone to search for all of the private equity firms located within North America, or even worldwide.

The reasoning behind this lack of available information is due to the enormous amount of time and attention needed to find and research PE firms.  Just the process of gathering all of the names of potential firms takes too much time to collect and formulate into one document for the product to be offered at no cost.  In addition, when you add in the information included within most PE firm databases or directories it becomes a staggering figure.  For example, most premium and compete databases, directories and listings include information regarding names of principal an executive personnel, their office phone numbers, personal cell numbers, the office’s physical address, internet website address, and business information including assets under management (AUM).  In a listing or directory that contains 1,000 separate PE firms which included the previous information, there would be over 18,000 different pieces of information.  The sheer amount salaried paid hours to research and gather all this information and place all within one file source is the reason why there are no complete listings of PE firms.

However, if you are only looking for only the names of potential private equity firms, there a few available.  None of the lists provided will include all the information mentioned previously, and will not have a complete list of only names.  Consequently, there is no complete PE firm listing or directory that is free. 

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com

Assessing the quality and professional standing of any private equity firm database or directory is important before deciding upon which one you should choose to invest in.  The following article is a “must have” checklist for determining which PE firm database you should buy.

Is it professional?  Visit the website and determine the quality of the product being presented.  Does the website provide a list of the information categories contained within the database?  Do they post testimonials or feedback from customers?  How is their customer service?  By reviewing the company’s website and reading reviews and samples of the product, you can begin to discern the professionalism of both the company and the product.
Is it extensive?  Most professional directories will offer samples and video overviews of the product in which you are interested in.  Assess the depth and quality of the content being offered through the database.
Is the information current?  In our current economy, the turnover rate for personnel within business organizations has dramatically increased.  With this being said, a product which is focused on providing contact information for businesses and their key personnel, it is paramount that the information is current and up-to-date.  Trusted websites will post the most recent release with the most recent update to the information as well.
Continuing service?  In addition to the previous items, it is important to determine whether the company which offers the database provides any guarantees or continuing service.  Premium database companies are confident in the information being sold, and will often give a guarantee or refund policy if you find the information to be outdated or incorrect.  In addition, some companies will offer subsequent updates on new releases as bonus offer for when you purchase the database.

By following the previous items, you will be able to ascertain the quality of the product and organization in order to determine which private equity database or directory is right for you.

Note: Without the right Private Equity Directory you will end up wasting time trying to obtain hard to find contact details for private equity firms.

Access the most trusted private equity directory by visiting http://PrivateEquityDirectory.com.

There are several terms used in tax lien investing. In order to make good choices when investing in them, an investor must understand the various terms used. The following is an explanation of the differences in these terms:

Tax Lien Certificates – When property owners fail to pay property taxes, the county often auctions off certificates. This certificate gives the investor the right to receive the amount paid for the certificate plus interest. The interest rates are often higher than what can be earned in the stock market or in other investments. This type of investment is less risky than the stock market. The certificate puts the investor ahead of the government and mortgage lender in line to receive payment.

Tax Lien Deeds – If the property owner does not pay their property taxes, the investor can apply to the Tax Collector for a tax deed in order to own the property. Some counties do not fool around with a tax certificate. The county goes straight to selling the property through a tax deed sale. Deeds are a more risky and more expensive form of investing than purchasing certificates.

Redeemable Tax Deeds – When lien deeds are sold, they often contain a clause. The clause states that the delinquent property owner can come back and redeem the property. This makes a deed with a redeemable clause a much riskier investment.

If someone wants to invest in tax liens, they need to make sure they understand the terminology. Understanding what they are investing in will save frustration. Once the investor understands what the differences are, they can move forward to decide what to pursue investing.

For more information about how to get started on a tax lien investment strategy, Click Here.