United Wholesale Mortgage has said it intends to let homeowners pay off their mortgages in bitcoin later this year.

The company, which went public last January via a special purpose acqusition merger, said this week it intends to accept “cryptocurrency” as payment for home loans. Detroit Free Press, which first reported the story, said UWM will become the first mortgage firm in the U.S. to do so.

“We’ve evaluated the feasibility, and we’re looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments,” UWM Chief Executive Mat Ishbia said in the company’s second quarter earnings call on Monday. “That’s something that we’ve been working on, and we’re excited that hopefully, in Q3, we can actually execute on that before anyone in the country because we are a leader in technology and innovation.”

The Michigan-based company later confirmed to CNBC that it’s planning to begin with bitcoin, and that it is also evaluating the use of other cryptocurrencies too, though it didn’t name any specific tokens.

“We’re evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments,” Ishbia tweeted, using the company’s Twitter account.

The announcement is a big deal as UWM is the U.S.’s second-biggest mortgage lender after Quicken Loans, CNBC reported. The company works solely through wholesale channels, which means that it employs numerous brokers who help to connect clients to home loans.

UWM’s push into cryptocurrency comes at a time when acceptance of decentralized digital money is soaring. Earlier this year for example, the electric car maker Tesla also announced it would accept bitcoin as payment for its vehicles.

However, cryptocurrencies have also come under heightened scrutiny by regulators in the U.S. For instance, President Joe Biden’s $1 trillion infrastructure bill includes new rules around crypto tax, and financial authorities such as U.S. Treasury Secretary Janet Yellen and Fed Chief Jerome Powell have all spoken on the need to improve regulation of digital currencies.

UWM didn’t state whether it intends to hold bitcoin, like Tesla has done, or if it will immediately convert it to fiat at the point of transaction, as many enterprises do.

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How did you get started? Share more about yourself and the environment you grew up in as a child… Tell us about yourself. What’s your background?

I have worked with family offices for the last 25 years, and ever since the early days of the concept. When the concept was still generally unknown and structures were quite informal, I was immersing myself in my work. Throughout the last 10 years, we have witnessed an unprecedented “tectonic” shift in the industry, where family offices are highly structured and capital volumes are massive.  

What was your ah-ha moment that set you on the path you are on today? 

My “ah-ha” moment came through a conversation with a New York City family office highly specialized in real estate development. The office was seeking advice in other asset classes. However, what they considered to be their weakness (no multi-sector knowledge and high specialization), we actually saw as their strength. We continue to co-invest with them to this day. 

Seven years ago, we decided to forego the established model of a traditional multi-family office and specialize, creating a power niche for ourselves to work within. 

Tell us about your company. What services do you provide?

Our company is a 25-year-old multifamily office based in NYC. We work with non-US family investors. Seven years ago, we decided to specialize in a very specific asset class (investing in debt backed by US real estate), which gave us an edge and differentiated us in a highly competitive market, ultimately generating stellar growth to our business. 

What are you working on right now?

We are currently working on expanding our origination of debt backed by US real estate for our investors and co-investors

You started this business in a competitive industry and became successful quickly. What’s your secret to success?

I believe the secret to our success has been through specialization. We created a power niche that truly differentiated us in the market. We now work with several single family and multi-family offices and financial institutions globally that come to us for access to this niche. To separate ourselves from the competition, we became suppliers and partners.  

What is your vision for the future of your industry?

We believe the future of the industry includes specialization of family offices by leveraging their experience and background to offer this specialization to their peers. It creates a highly productive network effect. We initiated this informally through our specialization and it has scaled. 

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Over the past year, many First Industrial Realty Trust, Inc. (NYSE:FR) insiders sold a significant stake in the company which may have piqued investors’ interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for First Industrial Realty Trust

The Last 12 Months Of Insider Transactions At First Industrial Realty Trust

The Lead Independent Director, John Rau, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$42.78 each. That means that an insider was selling shares at slightly below the current price (US$55.72). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was 67% of John Rau’s stake.

In the last year First Industrial Realty Trust insiders didn’t buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:FR Insider Trading Volume August 18th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of First Industrial Realty Trust

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of First Industrial Realty Trust shares, worth about US$44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About First Industrial Realty Trust Insiders?

The fact that there have been no First Industrial Realty Trust insider transactions recently certainly doesn’t bother us. Still, the insider transactions at First Industrial Realty Trust in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Be aware that First Industrial Realty Trust is showing 4 warning signs in our investment analysis, and 2 of those don’t sit too well with us…

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you’re looking to trade First Industrial Realty Trust, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Aug. 17—An East Toledo man accused of fatally shooting another man outside a bar also faces charges for setting off fireworks that caused a rental truck to blow up during a neighborhood Fourth of July party.

Michael Marsh, 24, of the 800 block of Kingston Avenue, was indicted Thursday by a Lucas County grand jury for two alternative counts of murder and two counts of felonious assault, all with firearm specifications, for shooting and killing Earl Price, 64, on Aug. 3 in the parking lot at the Last Chance Saloon, 457 Oak St.

Aaron Short, 26, of the 300 block of Park Avenue, is also charged with complicity in the commission of felonious assault with a firearm specification and obstructing justice from the shooting incident.

Mr. Marsh is scheduled for arraignment Thursday in Lucas County Common Pleas Court, but Mr. Short was not in custody as of Tuesday.

Mr. Marsh was separately indicted by a grand jury Monday on charges stemming from the fireworks incident, which damaged at least two vehicles and injured at least four people. He charged with prohibitions concerning exhibitors and fireworks incident sites, a fourth-degree felony, and a misdemeanor offense of possessing fireworks without authorization.

Mr. Marsh is accused of possessing fireworks without a license for several days before a neighborhood exhibition in the 600 block of Berry Street on July 4.

Toledo police say at least four people were injured after fireworks caused a U-Haul truck to explode before spreading to a pile of nearby fireworks lined on the street.

Steven Dukeman, 22; David Zuniga, 19; Dave Galdieux, 55; and an individual not identified on a police report were treated for injuries not considered life-threatening, police said.

No additional charges connected to the July 4 incident were filed as of Tuesday morning.

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This is a question that more and more people have been asking me and for most situations the answer is it all depends on your specific and particular financial, life or family situation. But for some, the answer might be emphatically and a resounding “NO.”

The No. 1 reason is that there is a correlation between the prices you will pay for a property and the interest on your mortgage at the time you will be purchasing. However, this will be determined by your monthly PITI (principle, interest, taxes and insurance) costs, not including any sudden repairs or emergency situations.

Because our housing inventory and interest rates are at 50-year lows and demand is at a 50-year high, prices have escalated with rates not ever experienced by the purchasing consumer. Although some are still seeking homes to buy, there is a segment who have dropped out due
to price increases that have pushed and forced them out of the qualifying range or are becoming
more concerned that they may be getting in too late at the top of the market.

Here are my thoughts on these very disturbing and for what some view as precarious, uncertain and challenging times. It all depends on how you perceive and approach your individual and personal situation with a plan. You know that you always hear me caution that “if you fail to plan, then you most assuredly plan to fail.”

Waiting for the market to go down or worst case scenario to crash, as some are prognosticating, is in my opinion no different than what some are saying about the pros and cons about our vaccines and we all know about that without taking sides in this column. But keep in mind polio wouldn’t have been eradicated if it weren’t for vaccines and everyone getting inoculated! So for those who are waiting, considering dropping out or have already dropped out, my professional opinion is to get back in.

Here are my reasons and my thoughts about this market. All one has to do is calculate at current interest rates what your maximum P.I.T.I. is with whatever cushion you find necessary to add for repairs or sudden emergencies and then come up with your monthly “nut” of costs. So that is the amount that you feel comfortable sticking with as your maximum outlay. But I have always told my clients to go a bit higher as some sellers just might be ready to reduce their asking price because they have been overpriced for several weeks or even months. Listen, timing equals luck and you just might be in the right zone at the right time to score your first or second home, maybe? It’s far better to try and fail than to succeed at nothing, right?

Now calculate the number that you would like and hope and pray that the market prices come down to let’s say anywhere from 5 percent to 10 percent or more, which I seriously doubt for 2021 and possibly into 2022. So let’s just say that interest rates go up anywhere from 0.25 to 1 percent or more over time, reducing our current demand and causing the reduction in asking prices. Then figure out what your costs would be with the higher rates and then you can make a determination as to whether or not waiting would be the most advantageous and prudent path to pursue.

For some it just might make a lot of sense to wait for different reasons: your job or business might not be doing as well now and might not even exist in a few years due to layoffs, salary cuts, and technology eliminating your position as well as company buyouts and paring down on duplication of jobs, reducing labor costs. Of course, separation or divorce just might, unfortunately, be in the cards, too.

But on the other hand, it just might be way more expensive to wait even at today’s higher prices. The increase in real estate taxes coming down the pike in the next five years because of the higher interest rates over time will cost you much more over a 15-30 year period than the “supposed” reduction in prices due to higher interest rates, lowering the demand.

Here are some links to articles that will provide more insight as to market trends, things to know, and business information:

https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp

https://realestate.usnews.com/real-estate/articles/the-homebuying-strategy-you-havent-heard-of-going-off-market

https://www.cnn.com/2021/07/12/homes/us-real-estate-market-not-buying-a-home-now-feseries/index.html

Online reviews statistics to know in 2021

https://www.superoffice.com/blog/customer-experience-statistics/

Philip A. Raices is the owner/Broker of Turn Key Real Estate @ 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the Real Estate industry and has earned
designations as a Graduate of the Realtor Institute and also as a Certified International Property Specialist.

For a “FREE” 15-minute consultation, a value analysis of yourhome or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email:Phil@TurnKeyRealEstate.Com Just email or snail mail (regular
mail) him with your ideas or suggestions on future columns
with your name, email, and cell number and he will call or
email you back.

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(Image: Tony Frenzel for Realtor.com)

We’ve seen more than a few reports come out recently saying that the market is in for a slow down. In fact, the Texas Real Estate Research Center at Texas A&M University recently released a report on that fact.

While in some markets, buyers are rejoicing at the prospect of a slowdown, in others, it speaks to a bigger trend. That’s why it was interesting to see that Midland, Texas, took the No. 2 spot in Realtor.com’s recent breakdown of the top 10 U.S. real estate markets seeing big price reductions.

“In our July data, about 45 cities from the top 300 largest showed an increase in the number of homes with price cuts,” said Realtor.com Senior Economist George Ratiu. “For buyers, these trends hold the promise of a less frenzied market, with more choice and better prices.”

Inventory is on the upswing, according to Realtor.com’s July 2021 data. In Dallas-Fort Worth, new listing counts are up 6.7 percent over last year. Still, there are 24.4 percent fewer active listings on the market year-over-year.

However, Midland’s real estate market is cyclical to the extreme. The whole Permian Basin region is susceptible to boom-bust cycles thanks to the historic link to the oil industry. When the price per barrel is high, the price for a home — or even a trailer parked in a dusty lot — is often just as lofty. When oil prices dip, the price reductions start.

However, Realtor.com data points to a different cause:

Despite oil prices reaching the highest levels since 2018, companies in the area have curbed drilling activity. That’s part of the reason why the unemployment rate in Midland stood at 6.7% in June, higher than the 5.9% reported nationally.

With fewer locals able to buy homes and fewer people moving to the area, demand just isn’t as frenzied as in the rest of the country.

To help his properties stand out, Chris Beckett, broker and owner at Pine & Beckett Realtors in Midland, says he cuts prices on his listings every seven to 10 days.

That strategy appears to be typical in this market—last year the share of price cuts was slightly higher, at 32%. Buyers in this area could take a look at this three-bedroom home with a recent $5,000 price cut.

Midland was second only to Des Moines, Iowa, in price reductions.

“Price cuts could signal a turning point in the market, but they may also just be a sign of sellers getting ahead of buyers in pricing,” says Danielle Hale, chief economist at Realtor.com. “There seem to be some markets where it’s a local custom to price real estate that way.”

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iShares U.S. Real Estate ETF (NYSE:IYR) shares experienced unusual options activity on Monday. The stock price moved up to $107.14 following the option alert.

• Sentiment: BULLISH
• Option Type: SWEEP
• Trade Type: CALL
• Expiration Date: 2021-09-17
• Strike Price: $109.00
• Volume: 649
• Open Interest: 1854

Three Signs Of Unusual Options Activity

Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.

Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset.

“Out of the money” contracts are unusual because they are purchased with a strike price far from the underlying asset price. “Out of the money” occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future.

Bullish And Bearish Sentiments

Options are “bullish” when a call is purchased at/near ask price or a put is sold at/near bid price. Options are “bearish” when a call is sold at/near bid price or a put is bought at/near ask price.

These observations are made without knowing the investor’s true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.

Using These Options Strategies

Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.

For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts

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NEW CANAAN, Conn., Aug. 16, 2021 (GLOBE NEWSWIRE) — NewLake Capital Partners, Inc. (the “Company”), a leading provider of real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third party purchases and funding for build-to-suit projects, today announced that it has closed its initial public offering of 3,905,950 shares of common stock at an initial public offering price of $26.00 per share. Settlement of the offering occurred on August 13, 2021. The Company expects its shares to become quoted on the OTCQX® Best Market operated by OTC Markets Group, Inc. shortly following the closing of the offering.

The Company contributed the net proceeds from this offering to its operating partnership. The operating partnership intends to use the net proceeds to acquire the Company’s target assets in a manner consistent with the Company’s investment strategy.

Ladenburg Thalmann & Co. Inc., Compass Point Research & Trading, LLC and Loop Capital Markets LLC served as placement agents for the offering.

A registration statement on Form S-11, including a prospectus, has been declared effective by the U.S. Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering was made only by means of a prospectus. A copy of the final prospectus relating to the offering may be obtained from Ladenburg Thalmann & Co. Inc. at prospectus@ladenburg.com or (212) 409-2000.

About NewLake Capital Partners, Inc.

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases and funding for build-to-suit projects. As of June 30, 2021, NewLake owned a portfolio of 27 cultivation facilities and dispensaries utilized in the cannabis industry that were leased to single tenants on a long-term triple-net basis.

Forward-Looking and Cautionary Statements

This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements, including statements regarding the use of proceeds of the initial public offering, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward- looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.

Investor Contact:

Valter Pinto, Managing Director
KCSA Strategic Communications
Valter@KCSA.com
PH: (212) 896-1254

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Real Estate Business

Report Ranks Nigeria 5th In Property Money Laundering

 

 

A new report by Global Financial Integrity, an American think-tank focused on illicit financial flows, corruption, illicit trade and money laundering, has ranked Nigeria fifth among countries with the most politically exposed persons involved in real estate money laundering schemes in the US.

The report titled ‘Acres of money laundering: Why U.S. real estate is a kleptocrat’s dream’, delved into the murky world of global money laundering and demonstrated the ease with which kleptocrats, criminals, sanctions evaders, and corrupt government officials chose the US real estate market as their preferred destination to hide and launder proceeds from illicit activities.

A key finding from the report showed that from cases reported in the last five years, more than $2.3bn had been laundered through US real estate, including millions more through other alternate assets like art, jewelry, and yachts.

The report said over 50 per cent of the reported cases in the US involved politically exposed persons, which was particularly problematic considering the lack of guidance on PEP identification.

The report read, “Several excellent reports, including the US Department of the Treasury’s 2020 National Strategy to Combat Terrorist and Other Illicit Financing, document the high risk of money laundering in the US through the real estate sector, highlighting the role of gatekeeper professions in facilitating these schemes.

“In the U.S, well over half of all cases involved a PEP, with the top three PEP countries all from within the Western Hemisphere (Mexico, Venezuela, and Guatemala), followed by Malaysia and Nigeria.”

The report recommended a more robust approach by the US government in addressing the issue, including requiring real estate agents to identify the beneficial owner of a residential real estate purchase and making legal professionals the lead reporting entity for identifying money laundering risks in commercial real estate transactions.

Related

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While accurately valuing real estate in affected areas is complex, the financial impact of climate change is starting to show. In the U.S., real estate exposed to rising sea-levels sells at a 7 percent discount to similar-but-better-protected properties, according to a 2018 study from Pennsylvania State University and the University of Colorado at Boulder.

And the First Street Foundation’s FloodFactor tool showed in 2018 that homes in eight states along the U.S. eastern seaboard have lost a total of US$14.1 billion in value because of sea-level-rise flooding since 2005.

Being prepared

The response of local and national governments will be a crucial factor in determining the financial impact of climate change.

Damage from flooding, storms and rising temperatures is forecast to cost UK city Glasgow around £400 million (US$553 million) a year and make the Scottish city as warm as London by 2050, according to the coalition Climate Ready Clyde.

Some cities are at higher risk than others, according to JLL’s 2020 Global Sustainability Report, and action is being taken for the long-term. Singapore has committed S$100 billion (US$73 billion dollars) over 100 years to prepare the nation for worst-case flood levels, while the city of Miami has recently appointed its first chief heat officer as the U.S. Army Corps of Engineers proposes a seawall to protect it from storm surges.

Although such moves are good news for investors, they only mark the start of what needs to be done at a city level.

“Investors need to know that the infrastructure surrounding their assets is resilient,” says Jeremy Kelly, director, global research at JLL. “Continued investment by cities is therefore vital to address what has become a costly consequence of global warming. Cities need to show the real estate industry that they are organized and ready for extreme weather events.”

But it’s currently the most climate-progressive investors who are taking extreme weather and climate risk most seriously, Mabardi says.

With the Task Force on Climate-related Financial Disclosures, other regulatory mandates, and momentum building around this critical topic, more and more investors and industry players are likely to swiftly follow suit, she concludes.

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