Doug Mitchell Blog

A HEALTHY ATTITUDE FOR A NEW AMERICAN REAL ESTATE SCENE

I spent several hours recently reading blogs, magazine and newsprint articles written by some of the country’s top economists. I was trying to get a sense of where the U.S. economy is headed and gain some sort of insight as to when things might get back to “normal.” The reality is, what we had come to think of as normal really never was.

The United States has been on a completely irresponsible fiscal joy ride (some would call it a demolition derby) for many years. Unbridled greed at all levels of the financial markets was unleashed ...

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The Magic Of The Wraparound Mortgage

In times like these, when the economic future is so uncertain, let’s take a moment to revisit a lending vehicle that most people aren’t thinking about at the moment, the “wrap.” I know, I know, you’re wondering how this debt vehicle would be used in a real estate market such as this. Well, why not take a look at the function and structure of this type of mortgage and come to your own conclusions.

A wraparound mortgage (also known as an all-inclusive mortgage or trust deed, commonly called a “wrap”) is defined as “a mortgage that secures a debt and includes the balance due under an existing firs...

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Getting Ready for the Coming Bargains in Southeast U.S. Commercial Real Estate

Established real estate investment company buys, rehabs and then sells commercial projects. The liquidity crisis will create rock bottom prices in 2009. We’re looking for Accredited investors who want to take advantage of the coming bargains as the market tanks. We’ll sell when the market recovers. Visit our website at www.gracerealtygroup.com or contact Doug Mitchell at : This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Grace Realty Group Investors Help Local Economy

The present economic decline has been described as the greatest financial crisis to strike America since the Depression. Job losses are climbing and most predictions are alarming at best.

Grace Realty Group is in the position of being part of the solution to today’s problems. Our redevelopment projects create jobs for construction workers, architects, building material manufacturers and suppliers. County and state government administration personnel kept busy permitting and inspecting our construction sites. We are having a very positive impact on the economy in that area in a time of uncertain... Read more...

GLOOM DOOM AND OTHER POSITIVE SIGNS

The trouble with gloom and doom is that when you’re surrounded by it, that’s all you can see. While most economists don’t predict a depression, the prevailing thought is that we’re in for a very bad recession with lots more foreclosures, job losses and many personal and business bankruptcies.

I’m not going to express my views about the insanity in Washington regarding the financial market and the Detroit bailouts. I will say the new President sure has inherited a mess (some would say it’s a crime scene). His hands are full but I think he’s got the moral support of the general population and I w... Read more...

Mortgage Pools - Jump In, The Water’s Fine

I often get questions from potential investors about the basic functions of a mortgage fund (aka a mortgage pool). Therefore, I’ve decided to write about mortgage pools in general to clear up any misconceptions.

Mortgage pools are securities that are required by state and federal agencies to provide complete and full disclosure through an offering memorandum. A mortgage pool is a collection of capital contributions from many investors and is usually in the form of a limited liability company that sells shares. The investment pool of capital is then used to purchase a number of different loans, ...

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LIQUID ASSETS

We think of liquid assets as something we can quickly and easily convert into cash, like stocks and bonds. With what’s been happening to investor portfolios lately, including IRA and 401k retirement funds, here’s something to think about:

• If you had purchased $1,000 of shares in Delta Airlines one year ago, you would have $49.00 today.

· If you had purchased $1,000 of shares in AIG one year ago, you would have $33.00 today.

· If you had purchased $1,000 of shares in Lehman Brothers one year ago, you would have $0.00 today.

· If you had purchased $1,000 worth of beer one year ago, drank all the b...

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Florida LLC Raising $20 Million Mortgage Fund to Take Advantage of Bargains in Southeast U.S. Commercial Real Estate

Investors have earned 15% annual ROI since inception. Fund backed by 60% LTV commercial turnarounds. We’ve raised over $6 million so far, looking to complete. Accredited investors should visit our website at www.thegracefundllc.com or email Doug Mitchel at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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CONTRARIAN (LOGICAL) COMMERCIAL REAL ESTATE INVESTING NOT FOR THE TIMID

After viewing the graph above, ask yourself these questions: “When the market is down (Recession Phase) what is the only direction it can go?” and “When the market is up (Expansion Phase) what is the only direction it can go?”

Some commercial real estate investors are able to consistently earn big profits due to the fluctuations common to the industry. Who are they and how do they do it? They are contrarian investors, who know when to buy and when to sell by identifying and understanding the phases of real estate market cycles. It also helps to have nerves of steel.

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What Does Sam Have to Say?

On more than one occasion I’ve mentioned Sam Zell, the real estate billionaire and organizer of the original real estate “vulture fund” (now known by the politically correct term “opportunity fund”) of the early ‘90s. When commercial property turned sour he was ready and armed with his $409 million fund (small by today’s standards) to buy out excellent properties for pennies on the dollar from troubled sellers, including the Resolution Trust Corporation.

The RTC was a quasi-government corporation set up by Congress to take over troubled thrifts and dispose of properties foreclosed as a result o... Read more...