Vacation Rentals

The Landlord Times published an interesting piece on vacation homes & rentals. They also have a new Facebook presence.  They are a must read for multifamily investors as well as property managers.

Low Real Estate Prices, Desire for Family Retreat Propel Vacation Home Sales to Four-Year High 70 percent of Vacation Home Owners generate enough rental income to cover half or more of their mortgage, and 51 percent cover at least three-fourths of their mortgage. AUSTIN, Texas, March 29, 2012 /PRNewswire/ -- In a sign of an emerging recovery in the real estate market, sales of vacation homes in 2011 reached a four-year high, powered by the lowest median sales price in eight years, low mortgage rates, and the desire for a family retreat, according to proprietary research commissioned by HomeAway, Inc. as part of the National Association of Realtor's (NAR) 2012 Investment and Vacation Home Buyers Survey®. The research found 33 percent of vacation home buyers purchased a vacation property last year primarily because of low real estate prices, while another 30 percent cited the desire for a family retreat. And 2011 proved an opportune time to buy, according to the NAR survey, with the median sales prices for vacation properties at $121,300, putting ownership within greater reach of more consumers. Other vacation home buyers cited the following factors as the most important reason to take the plunge into vacation home ownership last year, according to HomeAway® research: Low mortgage rates (13%) For future retirement (11%) Potential for price appreciation (8%) Other (5%) "The purchase of vacation homes is moving back into the mainstream for a greater number of Americans who are attracted by low prices, rental income potential, and use as a retreat for busy families to get together every year," says Brian Sharples, chief executive officer of HomeAway. "Although sales of vacation homes are not as high as historic levels, they are clearly showing signs of a sustained recovery." According to the NAR survey, 82 percent of buyers believe now is a good time to purchase real estate, and 39 percent say they are somewhat or very likely to buy vacation property within the next two years. Vacation Home Owners Believe Rental Income Can Help Offset Mortgage on Second Home Nearly all (91%) vacation home buyers say they plan to rent their property within the next 12 months to either long-term or short-term renters or a combination of the two. Of those buyers, 71 percent cited rental income potential as a factor in their purchase decision and nearly three-quarters (74.5%) of buyers believe they will make enough rental income to cover at least half of their mortgage. According to Sharples, HomeAway research conducted in Q4 of 2011 of 4,905 owners listing their vacation homes on HomeAway's U.S. sites show that 70 percent generate enough rental income to cover half or more of their mortgage, and 51 percent cover at least three-fourths of their mortgage. Of those buyers intending to rent their property, about 40 percent plan to make their vacation homes available for rent between one and eight weeks over the course of the next year; 32 percent plan to rent their properties between nine and 26 weeks per year; and 27 percent plan to rent their homes between 27 and 52 weeks per year. Vacation home buyers are willing to rent their property to more than one type of guest. The majority (70%) of people who plan to rent their property to short-term renters say they'll rent the home to vacationers, while 37 percent plan to rent to business travelers and 24 percent plan to rent to other tenants, such as college students or people relocating to the area. By the Numbers: Highlights from the NAR 2012 Investment and Vacation Home Buyers Survey 502,000 – Number of vacation homes sold in 2011 $121,300 – The median sales price of a vacation home in 2011, down 19% from 2010 38 – Percentage of vacation home buyers under the age of 45 $88,600 – Median household income of vacation home buyers 42 – Percentage of vacation home buyers who paid cash for their property 69 – Percentage of vacation home buyers who plan to own their property more than six years 33– Percentage of vacation home buyers saying they are very or somewhat likely to buy another property within the next two years About HomeAway, Inc. HomeAway, Inc., based in Austin, Texas, is the world's leading online marketplace of vacation rentals, with sites representing more than 640,000 paid vacation rental home listings throughout 168 countries. HomeAway® offers an extensive selection of vacation homes that provide travelers with memorable experiences and benefits, especially more room to relax, for less than the cost of traditional hotel accommodations. The company also makes it easy for vacation rental owners and property managers to advertise their properties and manage bookings online. The HomeAway portfolio of websites includes HomeAway.com®, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es in Spain; AlugueTemporada.com.br in Brazil; and HomeAway.com.au in Australia. SOURCE HomeAway, Inc.

Rental Forms & Lease Forms.

Walker & Dunlop Provides $163.8 Million in Freddie Mac Financing for Connecticut Apartment Communities

BETHESDA, Md., Jan. 27, 2012 /PRNewswire/ -- Walker & Dunlop, Inc. (NYSE: WD) (the "Company") announced today that its subsidiary, Walker & Dunlop, LLC provided $163,816,000 in financing for four multifamily properties in Connecticut on behalf of Principal Management Partners on December 23, 2011. Hoyt Bedford Apartments and Morgan Manor Apartments are both located in Stamford; Seramonte Apartments is located in Hamden; and Montoya Apartments is located in Branford.

Each of the refinance loans were structured with a 7-year term with 2-years interest only and a 30-year amortization under Freddie Mac's Capital Markets Execution Program (CME). Hoyt Bedford Apartments was underwritten to a 79.9 percent loan-to-value; Morgan Manor Apartments was underwritten to an 80 percent loan-to-value; Seramonte Apartments was underwritten to a 79.2 percent loan-to-value; and Montoya Apartments was underwritten to an 80 percent loan-to-value.

Hoyt Bedford Apartments is a 349-unit mid-rise residential development situated on over seven acres that offers studios, one- and two-bedroom units. Morgan Manor Apartments is comprised of 238 residential units and six professional units in two high-rise buildings, situated on over two acres. Seramonte Apartments is a 450-unit apartment community situated on over 30 acres that offers 19 different floor plans in townhouses, garden-style and mid-rise buildings. Montoya Apartments is a 133-unit garden-style development that offers multiple floor plans in one- and two-bedroom models.

Senior Vice President, Drew Anderman (212/953-7301, danderman@walkerdunlop.com) led the Walker & Dunlop team.

About Walker & Dunlop

Through its subsidiary Walker & Dunlop, LLC, Walker & Dunlop, Inc. (NYSE: WD) is one of the leading providers of commercial real estate financial services in the United States, with a primary focus on multifamily lending. As a Fannie Mae DUS™, Freddie Mac Program Plus® and MAP- and LEAN-approved FHA lender, the Multifamily and FHA Finance groups of Walker & Dunlop are focused on lending to property owners, investors, and developers of multifamily properties across the country. The Capital Markets group specializes in financing commercial real estate for owners and investors across the United States. Capital for this financing comes from large institutions such as life insurance companies, commercial banks, CMBS lenders, pension funds, and specialty finance companies. The Principal Investment group provides institutional advisory, asset management, and investment management services with respect to debt, structured debt and equity.

SOURCE Walker & Dunlop, Inc.

Healthcare Realty Trust Announces Fourth Quarter Earnings Release Date and Conference Call

NASHVILLE, Tenn., Jan. 23, 2012 /PRNewswire/ -- Healthcare Realty Trust Incorporated (NYSE: HR) today announced that on Wednesday evening, February 22, 2012, after the market closes, it will report results for the fourth quarter of 2011. 

On February 23, 2012, at 9:00 a.m. Central Time, Healthcare Realty Trust will hold a conference call to discuss earnings results, quarterly activities, general operations of the Company and industry trends. Simultaneously, a webcast of the conference call will be available to interested parties via an Internet link at www.healthcarerealty.com under the Investor Relations section.  A webcast replay will be available following the call at the same Internet site address.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States.  The Company had investments of approximately $2.9 billion in 219 real estate properties and mortgages as ofSeptember 30, 2011, excluding assets classified as held for sale and including an investment in one unconsolidated joint venture.  The Company's 208 owned real estate properties, excluding assets classified as held for sale, are located in 29 states and total approximately 13.9 million square feet.  The Company provides property management services to approximately 10.0 million square feet nationwide.

In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2010under the heading "Risk Factors," and as updated in its Quarterly Reports on Form 10-Q filed thereafter.  Forward-looking statements represent the Company's judgment as of the date of this release.  The Company disclaims any obligation to update forward-looking statements.

SOURCE Healthcare Realty Trust Incorporated

Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011

Fannie Mae GeMS™ Issuance Reached $6 billion Milestone in the Program's First Year

WASHINGTON, Jan. 24, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.2 billion multifamily MBS(1) in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009.  Total new issuance for 2011 was $23.8 billion, up from $16.4 billion in 2010.  Fannie Mae also resecuritized $6.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program in 2011.

"Market activity in our multifamily securities is clearly gaining momentum.  Tradable float, the volume of securities available to investors, has increased significantly over the past few years.  Fannie Mae's multifamily MBS outstanding has grown to over$100 billion.  As volumes increase and liquidity rises, we expect market participants will focus on Agency multifamily securities in the coming year," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.

Fannie Mae is the market leader in financing U.S. multifamily mortgages and has traditionally been a leader in this market.  The company's DUS MBS securities provide market participants with easily-modeled cash flows and call protection in defined maturities of 5-, 7- and 10-years.  Fannie Mae's GeMS program consists of structured multifamily securities created from Fannie Mae's portfolio of mortgage securities.  Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae's multifamily REMICs (ACES®) and multifamily Mega securities.

Highlights of Fannie Mae's multifamily activity in 2011 include the following:

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONSNew multifamily MBS business volumes in the fourth quarter of 2011 totaled $7.2 billion.  Total 2011 new issuance volumes reached $23.8 billion. 

2)  FANNIE MAE GeMS ISSUANCEIssuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $1.9 billion in the fourth quarter of 2011, including $1.8 billion in GeMS REMICs and $0.1 billion in GeMS Megas.  For full-year 2011, Fannie Mae issued $6.0 billion in GeMS securities, including $4.4 billion in GeMS REMICs and $1.6 billion in GeMS Megas.

3)  FANNIE MAE SALESFannie Mae Capital Markets sold $10.6 billion of multifamily mortgage securities in 2011, including $2.8 billion in the fourth quarter.(2)

For additional information about Fannie Mae's multifamily MBS products and issuance please refer to Basics of Multifamily MBSand our MBSenger Publication "Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.

Signing On!

This blog will be about apartment investing.  Owning apartments is an excellent career and it's not only for the wealthy. You don't have to be a lawyer or have a physician job to be a landlord.  We'll explore many different aspects of this career and investment type right here.