DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

Hedge funds are funds that can use alternative investment strategies, such as hedging against market downturns, investing in asset classes like currencies or distressed securities, and utilizing return-boosting tools like leverage, derivatives, and arbitrage. They can be used as an alternative to the stock market for investors seeking not only capital appreciation but capital preservation. The primary goal of the majority of hedge funds is to make consistency of return, rather than magnitude.

However, not all hedge funds are created equal. Returns, stability, and risk vary between strategies. Many strategies hedge against downturns in the markets, but not all. Hedge funds are flexible in their investment options, and there are multiple strategies, including selling short (selling shares without owning them in hopes that the price will drop and the shares can be purchased at the lower price), investing in anticipation of a specific event (merger transaction, hostile takeover, bankruptcy, etc.), or trading options or derivatives (contracts whose values are based on the performance of any underlying financial asset, index, or other investment). Many strategies benefit from not being correlated to the direction of equity markets. Hedge funds are largely unregulated because they cater to more sophisticated investors. US laws require the majority of investors in a fund to be accredited, meaning they earn a certain amount of money annually and have a net worth of $1 million. Some might call them mutual funds for the Donald Trumps of this world—in other words, the super-rich.

Hedge funds are estimated to be a $2 trillion industry that is growing every year, and there are approximately 10,000 hedge funds in the US. Most are highly specialized, relying heavily on the specific expertise of the managing team. The performance of many hedge funds is not dependant on the state of global markets, especially relative value hedge funds. In contrast, conventional equity or mutual funds are usually totally exposed to market risk.

The common misconception that hedge funds are extremely volatile and unstable is based on the assumption that they all use global macro strategies and place large directional bets on stocks, bonds, commodities, currencies, and gold while using lots of leverage, when in fact most use other strategies. Less than 5% of hedge funds are global macro funds, most hedge funds either don’t use derivatives or use them only for hedging, and many don’t use leverage at all. Benefits of hedge funds include reduction of portfolio risk when added to a balanced portfolio, a wide choice of strategies for investors to meet their investment goals, higher returns and lower risk on average than traditional funds; elimination of the need to watch entrance and exit times on the market, making it a more viable long-term option; and portfolio diversification not possible with traditional investing.

Downsides to hedge funds include management and performance fees from management firms, though high water marks and hurdles help to curb these fees. They also require a large starting investment, which is why they generally are catered more to the wealthy.

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Looking for a home can be one of the most time consuming processes that you ever become involved in.  It is a process that should be approached carefully and with great care, the home you purchase is going to be the home you live in for the foreseeable future and possibly the rest of your life.  Because of this, it is important that you do not rush the process.  But there are some things you can do to help make the process easier on you and everyone involved.  After all, you do not want to make a purchase that you will later regret simply because you were tired of the searching process.

To avoid the process from becoming overwhelming, it is recommended that you take some time to discuss what you and your spouse are interested in.  If you are not in agreement with what you want in a home, the home searching process may continue to go on without you choosing a home that you are satisfied with.  It is best that you are both on the same page and understand what your ideal home should have and where you are willing to make exceptions.

Before beginning your search, experts suggest that you make a list of the must have features that you would like to see in your new home.  There may be features that you are not willing to compromise on, and this is acceptable.  You are making a huge purchase and you should not later regret your decision simply because you had become tired of looking at available homes.  The list that you create should include the number of bedrooms, bathrooms, garage and size of the yard.  These are things that you absolutely must have and should not compromise on.

The next that you should create is a list of things that would be nice to have but are not essential.  This list may include things such as, an updated kitchen, new carpet, wood floors or a swimming pool.  If you find a home that includes all of your must have items in addition to some of the wants, you are a step ahead in the game.  Some of the things on this list may easily be added to the home you choose after you have made the purchase.  They should not be seen as deal breakers if they are not included in a home.

The next list should include items that you absolutely do not want in a home.  You should make your agent aware of this list and inform them that you are not interested in viewing homes that feature anything on your list.  Things on this list may include a high traffic street, long commute to schools or work or anything else that you find unappealing.

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Over the last several years there have been a large amount of “damaged” properties sold to unsuspecting buyers after severe weather has ravaged the area.  Many times sellers find ways to mask problems hoping that buyers over look them.  Below are a few tips on how to buy a house in a storm ravaged area.

Inspection

Get the house inspected. This rule holds true if you are buying in a storm ravaged are or if you are buying a brand new home.  A good inspector will give the house a thorough going over looking at every corner to make sure things are in proper working order.  Inspectors in hard hit areas often are very knowledgeable about the extent of the damage in the area where the home is being sold.  This knowledge will allow them to know if there was any flooding in the area, what types of storms have hit, and what type of damage other homes in the area have incurred.

Research

If you find a house you like in an area that was hit by a storm, it is a good idea to get on the internet and search for pictures of the area.  With everyone so willing to share pictures of these disasters you might be able to find a picture of the home in question and see if it had any noticeable damage.  You may also want to talk with neighbors and see if they know if anything happened to the house you are interested in buying.

Give it the Once Over

Before you waste money on an inspection take a look around the house yourself to see if there has been anything done to mask a problem.  Check the interior paint to see if it has been recently refreshed.  Many times homeowners will try and hide water damage with a fresh coat of paint.

 If the entire house has been painted there is a chance it was done to spruce the place up, but if one or two walls were painted it may mean they are trying to hide a problem.  It is also important to look at the ceiling to see if there is any water damage.  Water on the ceiling often means there was a leak from the roof.  Leaky roofs are hard to fix unless it is done by a professional.   

Look at all of the windows.  If all of the windows are older than the storm and all look pretty much the same age then you are probably okay, but if there is one or two that look newer it may mean the window was broken during the storm.  Broken windows usually mean water has gotten into the house which could lead to mold issues down the road if it wasn’t repaired properly.

After you have looked the interior over go outside and check out the roof.  If the roof has a few new shingles in the middle of older ones then there is a good chance the home owner did a quick repair job instead of taking care of the entire roof.  Of course there are many leaks can be fixed without replacing the entire roof, but if it wasn’t done by a professional there is a good chance of serious problems down the road.

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It’s been a long road for the real estate market, the market crash that occurred in 2008, foreclosure rates that skyrocketed, and new construction almost seemed to disappear. But there are some noticeable changes that are happening that should make everyone take more notice.

The foreclosures are starting to show a trend in slowing which is a very good sign for many property owners.  This also means that if you want to get a hold of a property whether for your own use or for an investment purpose, the time is now.  There is a noticeable decrease in the availability of homes on the market that are marked for a quick sale due to a pending foreclosure.

Statistics are also showing an increase in first time home buyers then has been seen in the past several years, also another good sign that the real estate market is starting to take a turn for the better.  These new generations of home buyers have spent the past several years making sure that they were going to be able to actually purchase a new home by improving upon their credit scores.

In the past a prospective home buyer was told that in order to obtain a new home mortgage they would have to obtain a credit score of 760. However, there are indicators from lenders that this credit score requirement will drop. The drop will occur when the lenders will once again have to start competing against each other to offer loans to those that will once again qualify for a new home loan. 

During the past several years, investors have been buying up the homes with the intention to make them their rental property investments. This is going to mean that property rentals are going to increase which is going to be a great opportunity for those in the property management business.  Investors do not have time to manage all of the properties that they have and are purchasing, so they are going to start hiring property management companies to manage them for them. Those investors were thinking ahead because there is going to be an increase of younger generation that will be entering the work force that are not quite ready to purchase their first home.

Now is the time to prepare for a change in the real estate market, home buying trends will make a strong rebound, eventually and for those that planned by either improving their credit scores, invested in distressed properties, saved what money they could for a down payment on a new home purchase will come out on the winning end when the market begins to start working for them and not against them.  

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If you’re planning to put your house on the market for a spring sale, the time to prepare is now. There are several steps you can take to make sure it is ready on time. Doing this will help you avoid unwanted stress and can make the selling process a bit smoother.

Give your home a good spring cleaning. This means cleaning from top to bottom. Wash walls and windows, dust blinds, and thoroughly clean the curtains. Also remember to clean all appliances so they are smooth and shiny, dust baseboards, and clean out all your closets. The cleaner it all looks, the easier it will be for prospective buyers to picture themselves living there.

Declutter your home. Get rid of items you don’t need or use. This will look better to those viewing your property and will mean fewer things to pack when you do move. You may also want to begin the packing process. Pack those items you don’t use or won’t need any time soon. You’ll be happy you did just prior to moving day.

Inspect your home. This will help you avoid unwanted surprises that often crop up at the time of sale. Look at walls and floors to be sure no water damage exists. Check your plumbing to ensure no leaks are present. Check for the presence of unwanted rodents or insects. You’ll want to take care of this problem immediately should you detect it. Make sure there are no damaged or broken window seals. Repair any problems you find before putting your home on the market.

Get rid of any unpleasant odors that might be lurking around in your home. Begin by checking for the source of these smells. Masking them only takes care of the problem temporarily which usually doesn’t work even for a short period of time. Finding the cause will enable you to eliminate the problem altogether.

Paint inside and out. There’s nothing quite like a fresh new color to make a room look larger and more open. This will give you the opportunity to choose the colors that will make your home look more modern and appealing to a wide variety of buyers. Neutral colors with a matt finish typically work the best. Repair all damage and nail holes before ever picking up a paint brush. Touch up all the trim and ceilings if this is necessary.

Complete all outstanding household projects and repairs before ever putting your home on the market. A project that appears unfinished will not go unnoticed by prospective buyers. Completing them ahead of time will improve the overall look and feel of your house and most likely help entice prospects to make an offer.

Making sale preparations is a lot of work, but worth it all in the end. Use the tips above to get ready for a spring sale so you can be moved into your new home in time for summer.

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You’ve found the ideal condo, it’s in the perfect area, close to all of your favorite shops and restaurants; but do you know everything you should know before you submit an offer.  To help reduce the chances of getting stuck with a lemon, it is important that you do the necessary homework.  Here are some common questions you ask before submitting an offer.

• Complaints – Ask to see the minutes of board meetings held by the condo association’s board.  This will show you any problems that tenants may have filed complaints about.  If you notice a large amount of complaints regarding the plumbing and landscaping, you may be able to discern that the building is having management problems. 
• Repair Fund – Ask your real estate agent to find out if the community has performed a reserve-fund review within the last 5 years.  If the building is less than 10 years old, the fund should include 10% of the cost of all replaceable items, such as roofs, tennis courts and other amenities.  For a building that is between 10 and 20 years the amount in the fund should be between 25% and 30%.  The amount of the repair fund will vary depending on the age of the building.
• Insurance – Before submitting an offer you should request to look at the certificate of insurance which is a summary of the coverage that the building has.  When looking at this document you should ensure that the replacement costs that are covered by the policy are accurate with current rebuilding costs.  The policy should also include a building-ordinance clause which is put into place to ensure that the insurance will cover any costs associated with bringing the building up to code should it need to undergo rebuilding.  It is also important that you are clear on what the association policy covers and what you will be responsible for. 
• Legal Problems – Another thing that you should look into before purchasing a condo is whether the association presents any legal problems to you.  It is recommended that you have a real estate attorney carefully look over the bylaws.  They should ensure that they make sense and that they are consistent with the requirements of state laws.

Purchasing a condo is a huge investment and one that differs quite a bit from the purchase of a home.  It is for this reason that you should take the proper precautions before submitting an offer.  This is a huge investment; you should ensure that it is going to one that is worth it.

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If you are like many homeowners who are thinking about selling their home in the improved market, there are some easy and inexpensive repairs that you can make to help your home stand out.  It’s surprising how just making a few minor improvements can increase the appeal of your home.  We are going to offer you some of the most common things that many sellers often overlook before listing their home.

The first thing you should do is remove the clutter.  Out of all the suggestions we have for you this is by far one of the simplest.  To make your home less cluttered you should pack up and store most of the items you own.  If you have a collection that takes up the majority of space in one room or area experts suggest that you pack it away.  The fewer of your personal belongings potential buyers see, the easier it will be for them to picture their own personal belongings in your home.

The next thing that should be done is to focus on the exterior of your home.  Walk down to the curb in front of your home and see what sticks out at you.  These are going to be the same things that potential buyers notice when they pull up to your home.  You may notice that your shrubs are looking a bit unruly, or that your paint may chipping in some areas.  These are all relatively easy things that can be fixed prior to listing your home.  You should also give your flower beds a close look, if there are any dead flowers or plants that do not look healthy you should remove them at once.

Next on your list should be giving your home a thorough cleaning.  Make sure that you have dusted and cleaned all of the nooks and crannies located in your home.  You should also pay attention to the outside of your home as well.  You may also want to have all of the carpeted areas in your home cleaned by professionals.  Cleaning the driveway with a pressure cleaner will provide it with fresh appearance.  Another area that should be cleaned well is the windows.  Potential buyers do not want to have to look through dirt and grime simply to see the yard, it will also allow more natural light to enter your home.

Evaluate the interior paint colors of your home.  If you feel that they are too bright or busy you may want to invest in some neutral colored paint.  This is by far one of the easiest things that sellers can do to improve the overall appeal of their home.  While at the paint store, remember to choose colors that will be easy on the eyes.  Fresh paint will also help your home look cleaner and well taken care of.  

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Choosing the right closing date can help save you money while reducing the chances of a mistake being made that could end up either delaying or cancelling the deal.  Purchasing a home is one of the biggest purchases anyone can make, and it all starts with the closing.  The majority of lenders will require up to 45 days to approve financing; but once that has been taken care of, it is important that buyers work with their lender and the agents involved in the sale to choose a closing date that is beneficial for everyone involved.

Many homeowners are not aware that they have the ability to choose their closing date.  This can be beneficial for buyers who may need some extra time to pack up their old home or for any other reason that may have come up.  Below are three common reasons that buyers should keep in mind when selecting a closing date.

• Cash Flow – Purchasing a home is an expensive process, if cash flow becomes an issue during it is recommended that you choose a closing date towards the end of the month.  This will lower the amount of prepaid interest that you will be responsible for paying.  Prepaid interest is used to cover the period of time between the closing date and the end of that month.  To avoid having to pay a large amount of prepaid interest, choosing a closing date closer to the end of the month can be rather beneficial. 
• Be Prepared – When choosing a closing date you should choose one that is at scheduled around the time you are prepared to take possession of your new home.  Taking possession of your new home can mean one of two things; you are either prepared to move in and get settled or you are now ready to begin renovating the property.  In either case you should a date that will allow you ample time to prepare for either moving in or beginning work on your new home. 
• Avoid The Rush – Many homebuyers tend to schedule closing dates near the holidays in order to use that free time to move.  The reasoning behind this decision is sound, but you may not be the only one who is thinking in this way.  Many other homebuyers may have the same idea, which can lead to mortgage lenders becoming bogged down with closings.  It also means that there is a greater chance of a mistake occurring when your paperwork is filed.  This is a great way to utilize your vacation time, but just prepared for any delays that may occur.

Purchasing a home is one of the biggest investments you can make during your life.  Take the time to properly understand what is involved in the process and how acting at certain times throughout the deal can be beneficial for you.

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Should you hire a home inspector? The answer is absolutely yes! For the money you will spend, which is around $200- $250 depending on where you live, you will protect yourself against any unforeseen surprises that could cost you thousands of dollars when buying a home.

A home inspector will look over the home with a fine tooth comb and give you the final report. He or she will get up on the roof and look around for shingles that are loose as well as any roof damage. If there is a chimney, the home inspector will look over the checklist for that as well. The inspector will be able to tell you if the chimney will need a cleaning before you purchase the home.

The home inspector will look over wiring in the home you are thinking of purchasing. He or she will let you know if the wiring will need replacing in any areas. The ceilings and flooring will be checked over for any water damage.

If the home has its own septic tank the inspector will find out where it is. In some cases, older homes have the septic tank under the house. For example, the previous homeowner or even the homeowner beforehand built an addition onto the home. It just so happens the new addition is on top of the septic tank. New laws may prevent you from getting a loan from the bank as you will have to pay to get the tank moved. When the septic tank is underneath a room in the home, this is very costly to dig up and may ruin the room of the house it is under.

If the home you are thinking of purchasing has its own well, it will be inspected as well. You want to make sure you have a well with safe water to drink, cook with and shower/bath in. If not, the homeowner has the option of fixing this problem or you can move onto looking at other homes with your real estate agent.

The attic will be checked for insulation and safety issues. The basement will be checked for any water damage or other issues. The inspector is trained on what to look for. You do not want to do-it-yourself and miss any clues of water damage that may be hidden.

Walls will be looked over and knocked on to make sure they are solid. Many other items will be looked over for you, the potential home buyer.

Once the house has been inspected you will look over the report with the inspector. He or she will discuss each item on the report with you. The inspector may also advise you to go ahead and purchase the home, tell you to offer a lot lower then what the seller is asking, or even recommend you keep hunting for a house. Protect yourself and hire a home inspector. 

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Many homeowners consider selling their home on their own for many different reasons.  One may be that it has drastically reduced in price, or they are trying to avoid paying commission fees.  Whatever the reason may be, the process of selling your own home can be rather difficult.  Owners are required to put in a lot of time and effort to ensure that their home sells for fair market value.  We are going to offer you some tips to make the process easier and more effective.

The first thing that a seller needs to do is to list their home for the right price.  This is not the time to try and make a profit.  Listing your home for far more than fair market value will often leave you holding onto it longer than you’d like.  To properly price your home you should first take into consideration the condition of the property and the state of the market at the time you post your listing.  Studies have shown that homes that are listed three percent higher than the fair market value take longer to sell.  This is important because the longer a home sits on the market; the less likely you are to receive a serious offer from a buyer.

After you have settled on a price for your home, the next step is to prepare your home for buyers.  This is the time that you would carefully inspect your home looking for any problem areas.  If you notice them, it is likely that potential buyers will notice them as well.  It is important that your home make a good first impression when buyers see it.  To help your home achieve this, you may want to apply a fresh coat of exterior paint and clean up the yard.  You should also take care of any problems that the home may have on the interior as well.  This includes repairing any leaky faucets and removing clutter from shelves, countertops and closets.

If you feel that your home is lacking appeal, you may want to consider bringing in a professional staging company.  These companies know how to make homes look as appealing as possible to potential buyers.  This step may be expensive, but it can also be productive in getting your home sold sooner rather than later.

The next step for owners to take to sell their home quickly is to advertise.  This can be done by placing ads in your local newspapers and listing it online.  You can also post fliers in high traffic areas that will help make potential buyers aware of your home.  Advertising your home on your own can be a difficult task, but if you take advantage of all of the tools available to you it will be successful.

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