News

Regulation Nightmare

Like many of you, perhaps, the term “regulation” has traditionally made my eyes roll into the back of my head. While the political and illogical nature of regulation remains a turn-off, no longer is it advisable to turn attention the other way. With increased regulation for the real estate finance industry being developed over the […]

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The Current Financial Model for A&D Finance Costs Needs Recalibrating.

Accessing residential A&D financing continues to face headwinds. These winds have strengthened with the implementation of Basel III, more specifically HVCRE (“high volatility commercial real estate”). Development loans are now assigned a 150% risk rating for risk-based capital purposes versus the 100% formerly assigned. This makes it more expensive for regulated lenders to hold development […]

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The Real Reason Millennials Aren’t Buying Homes

NEWPORT BEACH, CA—In reaction to a recent CNBC article “Millennial homebuyers: Go Big, or Go Home,” Landmark Capital Advisors’ managing director Adam Deermount tells GlobeSt.com that Millennials are holding off on buying homes, in part, because many of them want more than just a starter home. We spoke exclusively with Deermount about how the American […]

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Is the Housing Market Going in the Wrong Direction?

The most recent new home sales report was concerning assales and prices are decreasing and inventory is rising. However, as the OC Housing News pointed out in an article earlier this week, if we look at those numbers more in-depth, builders may actually be doing exactly what we were hoping they would do for a long time; making […]

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Sponsor Trumps Project

While elementary in concept, the market is reminding us that an “A” sponsor and a “B” project overrides an “A” project and a “B” sponsor.  In search of investment volume over recent years, the first round of questions probed by capital generally focused more on deals and less about sponsors. More recently, we have been […]

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Are land-use restrictions impairing economic growth?

To continue on the topic of the consequences and negative impact of too many land-use restrictions from our last month’s edition, Justin Fox, author of the Myth Rational Market, presented in Bloomberg View a catching point of view on zoning regulation’s impact in San Francisco. He notes that despite San Francisco being arguably the largest center […]

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Controlled Disruption

As we begin another new year, this one seemingly at a much more apprehensive starting point, it made me think of a term that is the by-product of two separate premises. Two premises that provide turbulence and uncertainty in their own right, yet also offer investment opportunity and the potential for longer-term, sustained market growth. […]

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2016 – We’ll See…..

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.” – Lao Tzu As 2016 kicks off, I’m reminded of one of my favorite lines from the end of the film Charlie Wilson’s War, after the Soviets have been defeated in Afghanistan and are retreating: On his sixteenth birthday a boy gets a horse as a present. […]

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The Consequences Of Too Many Land-Use Restrictions

As a regular reader of our social media posts, you probably have noticed that we have been focusing lately on the negative effects of heavy land-use restrictions in closed access cities and it seems like the idea is starting the get some traction in the mainstream. Even the Nobel Prize winner, Paul Krugman, typically in favor of […]

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Institutionalize Me Please

Over the course of the past 10+ years, there has been a prevalent shift slowly occurring within our industry that seems to be near its final stage with no reversal in sight…..the institutionalization of real estate.  Unfortunately, this reality at times comes at the expense of the entrepreneurial developer/operator who historically made up the real […]

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