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Rpt-fitch Updates Criteria For Analysis Of Commercial Real Estate Loans Securing Covered Bonds

October 14, 2013

Is an LLC the Right Choice for my Commercial Real Estate Investment?

However, for German multifamily housing, Fitch has sufficient information to determine generic assumptions, which will be used in the absence of more detailed data about the underlying property. Fitch’s MVD for German multifamily properties are 70% in ‘AAA’ stress scenarios, and are derived from assumptions applied for recently rated German multifamily housing CMBS transactions. In addition, if issuer-specific data is available, such as historical foreclosure data, the agency may derive issuer- or property type specific MVD assumptions (as is currently the case for some Danish issuers). Revisions of breakeven OC for a given rating should not lead to any rating change, as the effect is limited and the OC Fitch relies on is expected to be sufficient to buffer a possible increase.

Hotels, in particular, have recovered in big ways as stocks soar and the economy improves. And Hilton’s move to go public is the latest example. browse The Elevation Group With hotel stocks close to a five-year high and revenue and profits growing industry-wide, investors are taking advantage of the stock rally to sell assets. Hyatt Hotels ( H ), the chain controlled by Chicago’s Pritzker family, raised $1.09 billion in an IPO in 2009; it rose 12% on its first day of trading. Since the IPO, shares have gained 77%. Caesars Entertainment ( CZR ), the casino chain that also operates hotels, sold shares to the public last year, after private-equity owners Apollo Global Management LLC and TPG Capital took the company private about four years ago.

Why the commercial real estate crash never came

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Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company.

Apollo Commercial Real Estate Finance, Inc. Announces Dates for Third Quarter 2013 Earnings Release and Conference Call

Holding each property in its own LLC limits your liability to that specific investment and this will help you to implement a diversification strategy. For example, if someone chooses to sue you because he or she slipped and fell at your Cincinnati property, the liability ends with your LLC for the Cincinnati property. Your other investments and personal assets are protected because they are held in different LLCs. If each property is held by a separate LLC, then the lawsuit at the Cincinnati property will leave the other properties in your portfolio unencumbered. You are free to refinance or restructure your other properties and can take whatever actions are necessary to maximize the return on your portfolio. Pass-through Taxation Unlike some corporations, LLCs provide “pass-through” taxation. Basically, an LLC member is not required to pay taxes at the business level. The “pass-through” taxation allows the LLC member to report the company’s profits or losses on individual tax returns at a lower rate. Corporation owners, on the other hand, face a double tax – on their business income and their personal income tax statements.

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