Though there seems to be an endless supply of other shoes to drop into the current economic chasm, there seems to be a general consensus that commercial real estate is going to take a significant hit. The shoe that could end up kicking commercial real estate down further and is relatively unknown or just not thought about is technology. Developed countries around the world, save a few, have never gone through such a potentially devastating...more
Recently I spoke with my co-managing partner Michael Facchini, of Regent Global Funds, an alternative investment fund, at an Institutional Investor conference on Distressed Real Estate in New York City. The folks at Institutional Investor did a fantastic job putting it together and assembled a group of very knowledgeable and informed speakers from the industry. Usually when you put together people in the upper echelons of the industry, you find...more
It's time to address one of the most incredible misconceptions in the current environment around real estate lending, which is the idea that all real estate lending is high risk. I hear this often and I understand where it's coming from since it seems to be the media's favorite topic, but this generalization needs qualification. Anytime you are evaluating risk, regardless of whether or not it is a traditional or alternative investment, there are basic factors to be considered that go beyond a rough generalization. If I asked the general population their risk assessment of government issued bonds, I would probably get an overwhelming response that they are low risk. Now if I were to provide a little more information, such that the government bonds are being issued by the Zimbabwe Government, does is still sound like low risk? I didn't think so, and you came to that conclusion because we got past the generalization and into the substance. The same goes for any type of investment, with real estate and mortgage lending being no exception. In lending, the Golden Rule is don't lend against any asset that you could not easily sell to get your money back. This also works for investing...more
With economies in complete disarray on a global basis, one of the few bright spots has been the massive correction in oil. It was widely speculated that oil was in a bubble and that speculation turned into a stark reality with oil dropping below 50% off its July 11th high of $147.27. The downward pressure came from the demand side of the equation...more
Everyone needs to consider their investments in corporations that have been using job cuts as an alternative to growth, and in essence keeping their bottom line in shape. With the economy in a recession, it's that time again for large corporations to start slashing jobs and trimming the fat, all in the name of profitability. However, I think we may...more
With the absolute implosion of global financial markets, the investment world is learning that alternative investments need to be private. I don't think there has ever been a better illustration of a "pull down" effect within the last 70 years. It almost seems ridiculous to keep using the word "historic" as each day seems to be, or break a piece of financial history. Looking at the first half of 2008, we all sat back and said, " Wow, that was pretty bad." I am guessing that many investors wish they could have capped their losses at the levels seen in the first half of the year. However, many didn't and more couldn't because the new question on everyone's mind has been where is the safe haven? This has been a serious question that hasn't been answered, and I believe that it's mostly due to looking in the wrong places. When you don't trust the markets or the financial system that is supporting it, then why would you look for safety there? It's like being scared of flying because the last 100 flights have crashed, and the only thing you have to prevent your own flight from crashing is hope. Instead, you should be thinking of an alternative method of travel, just like investors should...more
Author: John DashfieldWhen you think about it, every single product and service begins its life as somebody's problem. We all have things in life that we'd rather pay somebody else to do, either because we simply don't want to do it or don't have the...more
This investment perspective comes straight from the rooms in banks that are filled with the proverbial bean counters known as underwriters that are making the lives of hard money lenders very easy and very profitable. It's clear that the banks are...more
Howard Brodsky set out to conquer the carpet world. Dan Bleier just wanted to save his family-owned business. But both cherished their independent status in a retail chain, "big box" business world. Now, each realizes success through a purchasing...more
Most IT jobs consist of doing work in a constantly reoccurring cycle: define, design, create, test, deploy, repeat. When we get our first IT job or when we jump onto a new program, this can all seem so very new and exciting. However, once we reach...more
Corporate frauds undermine organizational effectiveness. Understanding the root causes of corporate frauds and dealing with them is critical to advancing organizational effectiveness and corporate integrity. Understanding corporate frauds is more...more
Magical but Simple Do-It-At-Home VirtuesMost of the "blockages" to success are originated in cosmic imbalance that slows down the process of attracting abundance or financial prosperity. Learn how to induce your own "Good Luck" combining two magical...more