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Mortgage Investments
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Market Update

We continue to fund fix&flip projects in the (still) undervalued markets within the New York City commuting range. The Newark area offers by far the best developer returns/investor security: High profit margins, cash-flows, and a strong resale market. The city is experiencing a rebound and gentrification as a result of an influx of business and NYC area urbanites.

The national housing market is performing well. The National Case Schiller Index shows a year over year increase of 6.6%. The low was in February, 2012 low. Note that the Zillow Home Value Index for Newark hit its low in February 2014, a full 24 months later. It also lagging on the upswing. While other markets have matured, Newark still appears to have significant upside potential.

At the moment we invest mostly in 3-unit properties. Typical numbers are: Hard cost of $200-250K, resale at $350-400K. Net operating incomes of $25-30K+. At a cap rate of 8-9%, and 125% debt service coverage (at our 12% rate!), higher resale values are indicated. 
The market is trending up. 

Please contact me if you have any questions. Thanks, PL


Paul Luykx, CEO
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