Interesting article from RISMedia yestereday-
The RE/MAX initial public offering, which was priced at $22 per share Wednesday morning, surged more than 20 percent within an hour of trading. More than 6.5 million shares traded hands as the stock rose sharply, signaling continuing investor optimism in the recovery of the U.S. housing market. RE/MAX agreed to sell 10,000,000 shares for the public offering.
The RE/MAX public offering follows other successful IPOs in the sector, including Realogy, Trulia and Zillow, as the U.S. housing market continues to rebound.
According to RISMedia CEO John Featherston, longtime industry observer and analyst, “The RE/MAX public offering to investors provides a different financial model and involvement into the housing sector than the other IPO entrants this year.”
RE/MAX has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of Class A common stock to cover overallotments, if any. Shares of the company’s Class A common stock began trading this morning on the New York Stock Exchange under the symbol “RMAX.”
The net proceeds of the offering are estimated to be approximately $194.2 million after deducting underwriting discounts and commissions and estimated offering expenses. The company intends to use the net proceeds from the offering to reacquire regional RE/MAX franchise rights in select markets, redeem preferred membership interests and to repurchase ownership stakes from existing shareholders.
“The anticipation is that the two regions to be acquired will be the mid-Atlantic and Southwest regions, providing the organization with ownership and control of two key resurging markets,” said Featherston.
Morgan Stanley, BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. William Blair, RBC Capital Markets and JMP Securities are acting as co-managers for the offering. Perella Weinberg Partners is acting as advisor to RE/MAX.
According to loan officer friends, here’s what is in effect today. -
As I’m sure you are aware of, the Government has shut down effective today, October 1st.
How does this affect our loan process:
There is little to no affect
-Self employed borrowers – getting 4506Ts
-Social Security verification – may need cards
-Government “federal” employees – verification of employment
Today, I wanted to give you three reasons that investing in rental properties in Portland makes sense, especially this year. If you have been thinking about where to invest, you should definitely be considering property that you can rent out and turn into some immediate and long term cash flow.
There are a lot of good buys on the market. The Portland real estate market is still flooded with a large number of foreclosures and short sales. This is good news for buyers, because that inventory is driving down the average housing price for all the homes on the market. You can find a lot of great properties for lower than average prices. It’s a very competitive market.
Interest rates are low. You should absolutely take advantage of the low interest rates available on mortgages. We don’t know how long they will stay at the current levels, so buy what you can now, while mortgages are affordable.
There is a high demand for rental properties. Tenants are available because there are a fewer high quality rental properties available right now. When you buy the right property, you will not have to worry about finding a good tenant. They are plenty of the out there in 2013. We are finding that many of our tenants used to be homeowners. Due to the real estate market struggling to recover, many of today’s tenants in Portland found they could no longer afford their homes, so they had to get rid of them in short sales or lose them in foreclosures. Because of that experience, their credit is pretty damaged. This will make them excellent long term tenants for you, because they will likely want to stay in one place while they build their credit back up. Also, they were once homeowners so they will take care of your property much better than the average tenant would.
As you can see, it’s a great time to become a real estate investor in Portland. If you are interested in looking at rental properties or learning more about this type of investment, contact us at Jim McNeeley Real Estate, and we’d be happy to talk to you.
The Supply and Demand for Investment Properties
Compared to One Year Ago
Last year, September 2012, many of us in Oregon and Washington were beginning to see very low inventories of properties available for sale, in the investment arena. Loopnet reports the following statistics, comparing this year’s inventory of available properties for sale to the inventory available last year at this time, as well as the change in the past 3 months.
Property Type 8/2011-8/2012 8/2012-8/2013 Last 3 mos
Multi-family apartments – 7.8% -15.0% + 9.7%
Office buildings -14.8% + 3.1% + 6.2%
Industrial properties – 5.8% -21.2% – 1.4%
Retail properties +13.7% + 3.8% + 3.8%
At the same time, Loopnet is reporting the following statistics, comparing investor demand (# of listings views) for the following property types:
Property Type 8/2011-8/2012 8/2012-8/2013 Last 3 mos
Multi-family apartments +37.3% + 4.7% + 2.7%
Office buildings +23.4% +25.6% +13.8%
Industrial properties +24.3% +19.8% + 8.7%
Retail properties +26.3% +20.1% – 3.7%
With the inventory levels low, and investor demand very high, we will likely see an increase in pricing. It also should inspire many of our investors who have been “sitting on the fence” waiting for the market to turn around – this is definitely the time to seriously consider getting that property on the market – and well-priced. And, for buyers to take action, especially with historically low interest rates.
Source: Loopnet, Summer 2013 market trends
This information is from sources deemed to be reliable, but must be verified with ones’ own legal, accounting and tax professionals.
This e-note is provided as information only, and is not guaranteed.
What’s Up with the Portland Metro Apartment Market?
Source: Real Estate Market Overview – Portland Apartment Market, Kidder Mathews, 2nd Quarter 2013
Our marketing firm has our video blogs up and running!
Interesting article from my CRIS instructor-
The Effect of the Economy on Real Estate
Source: REIS Observer, Portland, 2013
Great news for homeowners with Debt Relief in 2013! Happy New Year Everyone!
The final act by the 112th Congress to avoid the fiscal cliff was a
What does this mean?
If a lender forgives some portion of a homeowner’s mortgage in 2013, either as part of a
Why is this important?