Sunday, December 9, 2012

Public Storage REIT

I am not interested in this REIT at all. Their are many more REITs out there that do not have as many risks as this REIT does. Think about it. In this economy people are more worried about their own house or business then paying for a storage unit. I don't think that people when the economy is down are going to go purchase a storage unit. They are probably going to selling some of their belongs before they decide to pay a month fee to store them.

Even though the Public Storage REIT shows good numbers and is a good way to make some revenue, I am not interested in it at this time and economy.

HCP, INC

This REIT consists of mostly Senior Housing, Skilled Nursing, and Medical uses. This is a positive REIT I think because we are always going to need this kind of Real Estate. Our generation is projected to live until we are 120 years of age. That is 20 years longer than the older generation of today. That is a lot more elderly people int eh world that will need attention.

HCP real estate has a long term as well for their contracts. I personally like that compared to the apartment industry like ACC in my past Blog. Long- term contracts will help with budgets and just a little less stressful then normal.

This REIT did not catch my attention as much as the other ones discussed in class, but over all it is a positive earning REIT and can diversify someones portfolio a lot.

Thoughts on Weingarten

When watching all of the REIT presentations in class, this REIT is what got me excited about investing in a REIT. This is a well diverse REIT and has every thing in the right order. Weingarten has the goals of having growth in the same property NOI, accretive investment in both acquisitions and new development, growth in FFo and NAV, and to have continued improvement of their strong BS. I like their goals and their strong sense to follow those goals in the past years comparing the data given in their presentation.

I am all for new opportunities and individuals that start up their own business. Weingarden was a immigrant that came to America for a new opportunity. This is a family business and is located in Houston.

I am interested in this REIT because they look into High Quality Assets in high growth areas with high barriers to entry. They are in an area with huge population densities and are geographically dispersed. They have picked the right locations and have done their research in to where to buy their properties.

They are well diverse in the tenants that they have as well. They occupancy on average is high with the past year being at 94.6%.

All of there ratios are well and number look good in the past and in the future. I will go with this REIT as well.

My thoughts on ACC

Currently, I am a leasing agent here in College Station for an apartment complex called The Lofts at Wolf Pen Creek. I have been working with property management groups for a few years now. I enjoy the industry even though it is a bit stressful at leasing times. You can be 100% occupied one year and only 83% occupied the next year in a college town that has a marke that is oversaturated.

The management group of The Lofts is not a Real Estate Investment Trust. It is a small group out of chicago that only has 5 properties in Texas. They currently have 14 properties in the United States. They are planning on tripling in size by 2014. This management group is just now aquiring large assets. They do not only manage the properties but also own the property as well. As an employee of this business, that is a plus. If you have a different owner than the management, then problems can occur if not organized well enough.

This reason why I started it off like this is because we went over a REIT called American Campus Communities. I am well aware of this REIT becuase I used to work for this company when starting out in the apartment leasing business. They are a pretty well managed company and they have some of the best apartment complexes here in College Station. When people are looking for an apartment complex they are looking at the location, place, and atmostshere of the apartments as a whole.

ACC is a well REIT and I would invest my money into it so I can have a well diverfied portfolio. Calloway House, Calloway Villas, Aggie Station, and U Club Townhomes always have high marketing percentages year after year. If they keep up the same pace as the other 5 years that are behind them, my money would be in ACC REIT.

Sunday, September 16, 2012

The Financial History of The World


This is a great video that I had to share with yall. It makes you take a step back into reality and realize the financial background of our World.

Assignment #2- 9.16.2012

Real Estate as an Investment
I see investments in Real Estate mirroring other investments in today's world. Real Estate is an attractive medium that gains capital appreciation and investor return. In the general aspects of investing your money, Real Estate is the same as other investments. There are advantages and disadvantages to every investments. You just have to figure out which one you enjoy.
Baker Valuation-Different kind of Investments

I enjoy Real Estate and in the near future I will be an investor of Real Estate. I think that Real Estate investors have different attitudes towards risk than other investors. You can be a little risky in the stock market, but know what you are getting into. Being risky in Real Estate can lose you a lot more money than one might think. You never know what is going to occur in the future. A negative consumer housing report, an incident in the neighborhood, the type of neighbors you have, or even a shift in social trends. Anything could happen in the area where you have Real Estate. You can not just wake up one morning and sell your house like you can a stock. Real Estate is a more risker investment.
Real Estate Investing 101

Currently, Schlitterbahn has decided to build in my community in North Padre Island. As driving over the bridge onto the island, I see houses going up EVERYWHERE. I do not see many empty lots. The majority of people building homes are from San Antonio and workers from the Eagle Ford Shale boom. The price of housing has increased and will increase the market in the next 3 years. (Schlitterbahn should be completed in a couple of years) Why am I being this up? Well for homeowners that live on the island, their homes value will being increasing more than it has in the past. It has been pretty slow since 2008, so it is nice to see the housing market go up. That is just the residental side of things. There are many plans for hotels, strip malls, restaurants, etc. Investors have been planned for this and are currently taking action at this time of the market. It is amazing to see it going up this fast in Corpus Christi.
Schlitterbahn- Corpus Christi

Supply & Demand in a Real Estate Context and Basics of Urban Development
Demand for Real Estate consist of many things. It matters where you are looking to invest your money. The demographic areas in this world are totally different. You need to look for factors like income, price of housing, cost of credit, population size and growth and so forth, before you put your investments towards Real Estate.
Supply for Real Estate consists of available land, enough people for labor, and your supplies to complete the job. Researching the cost of these things will help your decision to invest in Real Estate.
According to my readings about value in Real Estate, you must have demand, utility, transferability, and scarcity to create a valuable profit.
Supply and Demand-Forbes
Is Real Estate an Efficient Market?

This article below explains if the Real Estate Market is efficient. I do know if it is or not. It depends on how you look at the picture. The article points out that it is not efficient because the same design of house in Texas is not the same price of the same house in New York. But, the article states that if you base the market on climate it could be efficient. It depends on Supply and Demand.
Efficient Market in Real Estate?

Operating Statement & Forecasting; Forecasting Cash Flow, Deriving Value, Capitalization Rates
When looking into investing your money into a residential or commercial Real Estate, you need to do an analysis on the property and area that the property is located in. This is where your finance classes will come into play. The proforma statement is a good analysis to calculate. You will be able to see where the seller got their selling price from.
Analysis Examples

Forecasting these values will let you know what the future will hold if everything is run properly. You will be able to know if the value is overpriced or underpriced. With the pro-forma statement you can calculate the capitalization rate, certain cash flows that are available to the public, value, and more. If you go to the link below you will be able to start searching and creating a pro-forma statement to see which properties you might be interested in investing in. Take a look!
LoopNet

When buying a property you look at 3 different approach techniques: Cost, Income, and Sales Comparison. The cost has two types: Reproduction and replacement. The income technique is the most likely approach when looking at Real Estate. In the income approach you have the Direct Cash Flow Method and the Direct Capitalization. The Discounted Cash Flow (pro-forma statement) is a better way to value a property then the Direct Comparison. The Direct Comparison is just the easier way to get the value. Once you understand the way to value a property, you will be able to make a decision and start the process of buying that property. Very interesting subject and exciting to do pro-forma statements on many different properties for sale to see if you can gain a bigger investment. You can invest in Real Estate many different ways. When looking at certain cash flows, operating income, expenses, etc on your pro-forma statement, remember their different ways you can invest in property.
Ways to Invest

Tuesday, September 11, 2012

Welcome Blog Nation

This is my first time starting a blog, so I will just start out by introducing myself.

My name is Nicholas Ryan Fordyce. I am a Finance Major at Texas A&M University. In approximately 4 months I will be a graduate of this fine University. I can not tell you how excited I am to be out of school and into the real world. I grew up in Corpus Christi on North Padre Island my entire life of 22 years.

I am an active member in Delta Tau Delta Fraternity. I am apart of the Financial Management Association, Aggie Investment Club, Big Event, and Best Buddies.

I have had a wide variety of work experience. At the age of 14, my father informed me that I was now obligated to pay for my fixed monthly bills and my expenses for sports and extracurricular activities. (I will attach my resume with the descriptions soon). With that said, I have learned many skills and experienced a lot of different people. The skill that I have been perfecting is customer service. I enjoy talking with parents, students, and kids. I enjoy helping people with problems and day to day situations.

Below is my profile for Linkedin. Feel free to check it out. Thank you for your time and hope to see you soon.

 Nicholas Fordyce Linkedin