Real Estate Finance

Financing real estate is unique compared to financing other assets. The main difference between real estate credit ande other loans is the concept of collateral. A mortgage is a pledge of property to secure a debt. If a borrower defaults on their mortgage, the lender has the right to tak legal action to sell the property to recover the funds.

The real estate market is at an interesting place right now. Housing prices are low and mortgage rates are extremely low. One real estate expert advises anyone who can to buy a second home. "I would first go out and buy a beachfront property," she said. "Go out and buy a second home. It's the last piece of the real estate market that has yet to hit bottom.

http://www.cnbc.com/id/49971041

This next article is very interesting because it compares different real estate markets across the US. It shows you what $2.9 million will buy you in Ballard, California, in Golden, Colorado, and in Chicago, Illinois. While each property is very nice, you get much more for your dollar in Colorado. The price per square foot from lowest to highest was in Colorado, then Chicago, and last was California.

http://www.nytimes.com/2012/12/13/greathomesanddestinations/real-estate-for-2-9-million.html?_r=0&adxnnl=1&pagewanted=2&adxnnlx=1355339905-el+rnThzzo3Y+9EE951ugw