Greetings Traders, Many people on Wall Street won’t tell you but real estate financing is one of the hottest sectors right now. This sector is so hot that small cap players in the space have been mounting very strong trading interest and exceptional breaking developments.
My latest alert is sector-leading player which has just come off a private placement worth 10 cents a share.
The company has also initiated plans to enter (and dominate) a real estate financing sector that is worth more $ 100 billion annually.
You really can’t find a more robust trading opportunity in the space right now because this is a company that turns “risks into huge opportunities.”
Market valuation has seen strong rallies since September and more than 850% has been added to lower valuations.
If you want to capitalize on a growth play that is tethering on the edge of a breakout then look no further than this extraordinary gem.
My Newest Multi-Trillion “Real Estate Financing” Play Is…
*** Omega Commercial Finance Corp. (OTCQB: OCFN) ***
OCFN Omega Commercial Finance Corporation, through its subsidiaries, provides financing to the real estate markets in the United States.
OCFN offers short and medium term loans to borrowers, including commercial real estate developers and speculators, business owners, landlords, and the owners of core and non-core assets.
OCFN also focuses on providing various alternative commercial real estate financing services comprising loans secured by commercial real estate properties; and financing non-core assets, such as ground up developments, as well as core assets, such as office buildings, multi-family residences, shopping centers, and luxury residential estates.
OCFN loan products include senior debt loans, mezzanine or subordinated loans, preferred equity, and other equity participation financing structures. Omega Commercial Finance Corporation is headquartered in Miami, Florida.
Top Investor Highlights
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Real Estate Transaction Volume Gets Strong 2014 Projections
According to a survey from the Urban Land Institute, the real estate market should continue on its steady road back to health over the next three years.
Real Estate transaction volume in 2014 should reach $ 340 billion, up from $ 290 billion in 2012, an increase of over 17%. Mortgage backed securities, a major funding source for commercial real estate, is expected to almost double from $ 48 billion in 2012 to $ 80 billion in 2014.
The forecast on real estate investments is also strong even though REIT (Real Estate Investment Trusts) returns are expected to be 12% this year and fall to 10% in 2014. Total returns from investments in apartments and from retail, industrial and office real estate are forecast to be 9.5% this year and to fall to 9% in 2014. That’s less than 2012 but very much in line with historical trends.
Particularly encouraging for rental property owners is that the apartment sector is providing the biggest investment return in 2013 with a projected 10%. Though a slight decline is expected next year, that sector should still top the real estate investment list.
California Leads Strong 2014 Projections for Growth in U.S. Housing Market
The wildcards over the nation’s debt ceiling limits and lingering stalemate in Washington aside, California Association of Realtors is predicting a 3.2 percent increase in existing single-family home sales statewide in 2014.
The forecasted increase in sales to 444,000 housing units will follow a year dogged by a 2.1 percent decline in sales — a dynamic the trade organization pinned on an “extreme shortage” in housing inventory in 2013:
Sales in 2013 — finishing the year with 430,300 homes sold — will be down 2.1 percent from the 439,400 existing, single-family homes sold in 2012, the California Association of Realtors’ forecast released Tuesday, Oct. 8, said.
California’s median home price is expected to increase 6 percent to $ 432,800 in 2014, following a projected 28 percent increase in 2013 to $ 408,600.
The average for 30-year fixed mortgage rates could hit 5.3 percent, according to the forecast, with the caveat that the scene could change dramatically the longer the country faces economic repercussions of the federal government shutdown.
“We’ve seen a marked improvement in housing market conditions in a year with the distressed market shrinking from one in three sales a year ago to less than one in five in recent months, thanks primarily to sharp gains in home prices,” said Leslie Appleton-Young, the group’s vice president and chief economist. ”As the market continues to improve, more previously underwater homeowners will look toward selling, making housing inventory less scarce in 2014.”
Wildcards for 2014 include federal, fiscal, monetary and housing policies, Appleton-Young said, naming forecast-altering variables that range from the mortgage interest deduction and mortgage finance reform to housing supplies and actions of the Federal Reserve.
Upon hearing the forecast, Inland economist John Husing said, “It all seems plausible, as long as Congress doesn’t screw it up. And, right now, I have no faith in them not to screw it up.”
With unemployment at 11.7 percent in the Inland region, Husing said the region cannot afford to see the economy slow down.
If Congress should go over the fiscal cliff, Husing said all bets are off and severe economic consequences could result. “The first sector of the economy that will feel it, in fact, is real estate,” he said, and the most immediate byproduct of this national discourse will be rising interest rates.
“Now that home prices have recovered, this will shut down the ability of families to buy and sell,” Husing said.
The housing market continues to be one of the brightest spots in the overall economy, Appleton-Young explained, but in terms of long-term, sustainable recovery California needs to see better numbers for job creation and job creation at higher levels of income.
At the moment, she said: “The big question is how successful is the Fed going to be at tapering off QE3 without destroying or harming the recovery we already do have.”
Quantitative easing, known as QE3, has played an important part of the housing recovery that California has seen. It refers to steps the U.S. Federal Reserve takes to boost the country’s lagging economy.
The Fed’s primary tool to spur growth historically has been lowering short-term rates. Quantitative easing expands monetary policy and involves buying bonds when interest rates can no longer be lowered. In 2012, the nation’s anemic economic growth led to a third round of easing. That iteration has the Fed buying an additional $ 40 billion in mortgage-backed securities monthly until it sees improvement in the labor market.
With consumer confidence starting to wane, Appleton-Young said the longer the federal shutdown and discourse in Washington lasts, the more unpredictable 2104’s housing market will become.
“We all learned five, six years ago in a global capital market that everything is inter-connected,” she said. “We hope this situation will be resolved before the Oct. 17 date where we will hit the debt-ceiling limits; if it isn’t resolved, we have some dire consequences to consider going forward.”
The 2014 California Housing Market Forecast also projects:
The GDP — gross domestic product — for the nation will rise 2.8 percent in 2014, after a projected gain in GDP of 1.8 percent in 2013.
Unemployment in the state should decrease to 8.3 percent, from 9 percent in 2013 and 10.5 percent in 2012.
With such strong projections going forward, developers should be lining up at OCFN’s door for development loans. This will no doubt add to the company’s extremely strong status as a leading real estate financier and deliver strong gains to traders in the short term.
Show OCFN some love, you won’t regret it.
Best regards,
Best regards,