Investments | Zentrica Real Estate Investment Club Blog

Forbes Lists, the richest people in the globle. Buffet up Gates go down to third place

Rank Name Place Age Valor ($bil) Residence:
1 Warren Buffett United States 77 62.0 United States
2 Carlos Slim Helu & family Mexico 68 60.0 Mexico
3 William Gates III United States 52 58.0 United States
4 Lakshmi Mittal India 57 45.0 United Kingdom
5 Mukesh Ambani India 50 43.0 India
6 Anil Ambani India 48 42.0 India
7 Ingvar Kamprad & family Sweden 81 31.0 Switzerland
8 KP Singh India 76 30.0 India
9 Oleg Deripaska Russia 40 28.0 Russia
10 Karl Albrecht Germany 88 27.0 Germany
11 Li Ka-shing Hong Kong 79 26.5 Hong Kong
12 Sheldon Adelson United States 74 26.0 United States
13 Bernard Arnault France 59 25.5 France
14 Lawrence Ellison United States 63 25.0 United States
15 Roman Abramovich Russia 41 23.5 Russia
16 Theo Albrecht Germany 85 23.0 Germany
17 Liliane Bettencourt France 85 22.9 France
18 Alexei Mordashov Russia 42 21.2 Russia
19 Prince Alwaleed Bin Talal Alsaud Saudi Arabia 51 21.0 Saudi Arabia
20 Mikhail Fridman Russia 43 20.8 Russia
21 Vladimir Lisin Russia 51 20.3 Russia
22 Amancio Ortega Spain 72 20.2 Spain
23 Raymond, Thomas & Walter Kwok Hong Kong NA 19.9 Hong Kong
24 Mikhail Prokhorov Russia 42 19.5 Russia
25 Vladimir Potanin Russia 47 19.3 Russia

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Brazil Real Estate Investment Trip

The next week we are gointo to be in Brazil, looking for investment opportunities and possibilities with Real Estate Developers there, mainly in Brazil Northeast.

The reason in that some of the Real Estate Investment Funds and Spanish Real Estate Investors want to know investment possibilities with high yields and returns (ROI, TIR).

If you are intesred to invest in Brazil and want to know what we are doing, contact us directly, we are in touch.

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ADVANTAGES of Real Estate Investment

In addition to the investment performance and portfolio diversification benefits available from investing in REITs, REITs offer several advantages not found in companies across other industries. These benefits are part of the reason why REITs have become increasingly popular with investors over the past decade:

Predictable Revenue Stream

REITs’ reliable income is derived from, rents paid to the owners of commercial properties, whose tenants often sign leases for long periods of time, or interest payments from the financing of those properties. In addition, the companies’ ownership of tangible assets with established values tends to reduce risk.

Earnings Transparency

Most REITs operate along a straightforward and easily understandable business model: By increasing property occupancy rates and rents, higher levels of income may be produced. When reporting financial results, REITs, like other public companies, must report earnings per share based on net income as defined by generally accepted accounting principles (GAAP).

Another way year-to-year financial progress can be gauged is by comparing levels of Funds From Operations (FFO). FFO, the industry’s supplemental performance measure, differs mainly from net income by excluding depreciation and amortization of real estate assets and gains and losses from most property sales.

Given the broad range of real estate property sectors and business lines, there also are a number of additional earnings metrics, which are used by REITs in order to provide   investors with a greater level of insight into their performance.

REIT Investing In Spain 2008

Many factors affect the value of a REIT’s share price beginning with the earnings tied to oftentimes predictable and growing streams of rental revenue and a price-earnings multiple assigned by the marketplace. Today Spain offers to REIT,  prices for rental assets way below 2007. It is market consensus that the market adjustment will give today investor an interesting returns. There is an increasing demand on rentals. REITS are the ideal vehicles to invest in residential to rent. As simple as it may seen, when undervalued assets are bought, REIT´s valuation by NAV improve and many REIT analysts look at net asset value (NAV) as a reference point for the valuation of a company. NAV equals the estimated market value of a REIT’s total assets minus the value of all liabilities.

When divided by the number of common shares outstanding, the net asset value per share is viewed by some as a useful guideline for determining the appropriate level of share price. Thus, the value of a REIT’s shares may be based on the value of its tangible real estate holdings.

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Morroco, could be a great point for investors, depends on the place

Morroco could be an interesting point to invest, but not anywhere. Big spanish companies have big problem there. One of the big problems that have the spanish promoters companies is that they are trying to sell final product at european price, without take care of the investors interest, thinking that investors are stupid and they will buy like they have done is Spain.

The difference is that the spanish speculators are mainly local investors and is difficult that the local investor move to different locations and countries that they don´t know to invest with “credibility” companies, the big promoters in Spain is difficult that have credibility for investors, more when they try to sell thinking that the spanish investor is going to re-sell to someone else.

The price that they try to sell to investors is similar to price that the spanish Real Estate Investor is accustomed to pay in Spain, with financial options. This financial options is difficult to have in the same way in other countries, and the promoters are trying to have alliances with banks to offer the product and the financial option, but when you have a price more expensive than 60.000 euros the banks not offer options, because this are usually personal credits with a bigger interest than mortgage credits (not offered today by banks).

Another problem that Spanish promoters are having in Morroco is that they think that having money they have all done, when the Real Estate Market has million of years and there are important cultures like Arabian, Chinese, or others that are doing business in this market for years. A lot of promoters are having actitude problems with local goverments, and this is a very bad point of beginning to do business in a different country ;)

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Spain need to be on the edge in Real Estate Invesment focus

From the Spanish Goverment to the Real Estate Investors, all the players in Spain, need to be on the edge in Real Estate Focus, really the Real Estate Promoters companies are really fine in comparison with companies from other countries but not in Real Estate Investment.

The Spanish Real Estate Investment market need to up one step further and have professional players, more than now having the experience of anglo-saxon companies.

We can saw in last SIMA the need of companies to work with investors, not with final buyers, but to work with investors a company need to know how to work in this league, and what and how to offer products to investors, looking for an exit strategy or at least a good yield annually.

This point have not been worked by the Spanish companies so when they are trying to sell all the final product stocks they cannot do it, because the secret is not a good cheap only, the secret is a good yield and a good exit strategy for the money, and when you dont have an exit strategy you can work with a cheap price.

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