Many younger people are looking to buy real estate with the current rates being so low. How much of a mortgage should a junior level analyst (1yr - 3rys) take out for a house/apartment?

I'm just curious to know if anyone has bought a house at a young age and what kind of changes it has brought on in their lives. It would be nice if you could share your salary range and the size of your mortgage (if you feel ok sharing that obviously)

All experiences, stories and opinions are welcome...

I have an offer from a large commercial mortgage broker and I need help. The interviewer quoted some huge numbers (500k+ in 2 years?) but the base is so low initially that I would have to scrape by in NY. Any thoughts on realistic comp - how long it takes to build a significant book, market outlook, and if there are potential buyside exit opps. Please help I need to make a decision soon.

Hey, I need some help regarding a commercial real estate mortgage. So basically there is a property worth around $4.5 million and there is a $3 million mortgage on it. The property is making significant NOI, but unfortunately the principal and interest payments, mixed in with a poor economy, the business is breaking even. My goal is to payoff the entire mortgage, by bringing in an equity investor. The investor would be a silent partner, but would be entitled to 50% of the net income. Even though the investor is contributing more in equity, they will only get 50% because they won't have to worry about day to day operations. All they have to do is collect their share of the money.

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Hi All,

An opportunity may come shortly for me at my firm and would like some information on exit opps specifically. Feel free to contribute any another tidbits.

I work at a buyside AM firm and have the opportunity to get into CMBS/RMBS trading. Was wondering what the exit opps are for a position like this.

I really like RE and am looking to get into it and this seems like a sure thing for me. Ideally, I want to work in a deal related function of RE. Something that involves valuation, long term investment decisions, and related. Is a transition like this readily available/normal? Or is it one of those "network your ass off"?

Hello everyone!

I have an interview with a Canadian asset mgmt firm (~C$35 bn AUM) for their mortgages and real estate products group. I have copied the job description below.

If you could help me out by highlighting potential questions they may ask or good things to read up on (i.e. industry trends, mortgage/RE primer, etc) that would be greatly appreciated.

Thanks in advance!

* * * * * * * *

This role involves supporting the real estate & mortgages product specialist in the Toronto office.

Responsibilities include (but are not limited to):
- Supporting the quarterly presentation and reporting processes
- Supporting the creation of material to respond to client requests

Hey so I understand the basics of the mortgage market, like prepayment, tranches, waterfall, TBA/spec, convexity. What type of more complex questions do you think I could ask some mortgage traders/salespeople?

Thanks

James Altucher posted this today, I thought I'd share it with all of the people on this forum who claim it's unethical to walk away from an underwater mortgage:

SHOULD YOU FORECLOSE

lobo ‏ @LoboSeawolf sell underwater condo at 70k loss or refinance and rent out? Both use all savings. .Rent w/o refi 800 loss/mo. Baby due, need bigger place.

ANSWER: This is simple to me: stop paying the mortgage. Have your baby. Live in your home. On average it takes 18 months for the bank to foreclose?

Two questions then:

- Isn’t this unethical?

- Won’t this destroy my credit?

[quote]The $25 billion agreement with five banks to end federal and state probes into abusive foreclosure practices was filed in U.S. court in Washington, capping negotiations over the lenders’ liability for conduct after the housing bust.

The agreement subjects the lenders to monitoring by officials plus penalties of as much as $1 million for each violation, the U.S. Justice Department said. The consent judgments will be in effect for 3 ½ years, according to the settlement terms.

The Justice Department today filed in federal court the proposed settlements along with a civil complaint against Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and three other banks. The agreement needs approval from a federal judge.

This week I have an interview with a credit union for a second market market analyst position within the Mortgage department Can anyone provide insight on what this position entails.

This week I have an interview with a credit union for a second market market analyst position. Can anyone provide insight on what this position entails. I know its within mortgage department.

Out of curiousity, anyone out there a loan officer or working at a mortgage bank? The number of loan officers has shrunk from nearly 500,000 at its height to somewhere around half of that today. The 80-20 rule still applies--20% of LOs are doing 80% of the business and making damn good money.

For example, 5 loans per month at average loan size of $200,000 with 1% LO commission = $120,000 per year in, say, Minneapolis. Not too shabby. Top originators are doing 20+ loans per month in higher cost markets. You do the math.

http://online.wsj.com/article/SB100014240527487038...

Pretty insane stuff. Going to be interesting to see how this plays out.

Thoughts?

So do you want to make a million dollars today?!

HERE IS THE TRADE!!

The second round of mortgage problems are here!!! So simply short the financials.

Buy 1,000 calls of of the ETF - SKF (ProShares UltraShort Financials).

November 10, 2010 Calls, $22 strike price

Initial cost:
(100 x $0.46) = $46.00 (current price of option as of October 20 6:38am NY)

$46.00 x 1,000 = $46,000

Then sit back and watch the second wave of housing fat get served

We'll check back on Friday to see the trade.

Can someone please link me or explain what exactly is going on with the banks involved with this mortgage situation. I know Citi, BofA are heavily involved and it has something to do with regulators investigating their servicing practices.

A Singapore based fund is funding +100 Million Euro into a European holding company, listed on Frankfurt Stock Exchange, who is engaged in engineering, construction, property, finance and mortgage sectors.

1. They are looking to engage with liquid listed companies in order to take opportunity to draw down their funding requirements

2. With the funding, it is seeking to take over and/or JV with ebitda positive companies internationally.

Some of the key criteria:

a) SECTORS
- Engineering & construction
- Property
- Finance & mortgage

b) KEY CHARACTERISTICS OF TARGETS
- Excellent brand
- Capacity & ability to ramp up
- Asset rich
- Multiple revenue streams
- Listed or private
- Efficient decision making process and capability
to provide accretive ebitda

Hello,

What do you think is the best way to short the Canadian Real Estate Market. I know that the commercial market in montreal is going to go bust ( shop are going out of biz ) everything is for rent. You can have prime commercial space on Saint Catherine street which was inconceivable a few years ago. Moreover the canadian market wasn't hit as the US was, maybe their time has come.

I am thinking about buying a house after my first year at a BB. (EDIT: I am working in Houston, so this is definitely more doable than NYC.) The first year I'll be staying at home with my parents and saving my money, so I'll have a good amount of savings. My girlfriend would be living with me as well, and she makes about $50k a year. I have three questions:

(1) Is buying a house a good idea if I am still considering (only considering, not decided) going to B-school in 3 to 5 years?
(2) Would the student loans during B-school help cover my housing (therefore, my mortgage payment)?
(3) Do you know any analysts who have bought a house? How did it work out for them?

Addition

I'm a rising junior trying to set myself up for IBD next summer. How good would an internship be at a large Mortgage company this summer compared to a decent internship at an AM firm? I'm pretty interested in the whole mortgage securitization process and apparently this company used to be "the king of subprime", but do they even do that any more? Is this worth pursuing? Thanks

Wondering if anyone can offer advice for choosing a group to work for FT within mortgage trading (i.e. agency, non-agency, whole loans, CMOs, ARMs, etc.)

I've been thinking about CMO Structuring because you get the opportunity to learn about mortgage derivatives inside out. However, I know that during the first few years I won't be trading, but will be putting together 'deals' .

Does anyone know the typical career path for an analyst starting out in CMO structuring? Do they eventually get to the trading / market-making role or do you get pigeon-holed?

Has anyone been active in Distressed debit investing such as buying mortgage securities pre-foreclosure from banks, mortgage holders, investment funds, etc...seeking information related to this investment vehicle.

Any insight into this job?

Morgan Stanley Commercial Mortgage Lending Loan Trading Analyst

Analyst-level position available in the Principal Transactions Group (PTG) within the Fixed Income Division. PTG utilizes both traditional and innovative commercial real estate financing techniques to provide its clients with a variety of mortgage-related products. PTG functions as a principal in its transactions by utilizing the firm's balance sheet and other borrowing vehicles and exiting its positions via the securitization and/or the whole loan market.

The Analyst will work on the loan trading desk and gain exposure to the pricing, hedging, and distribution of commercial mortgage debt.

Hi, I recently posted a thread regarding offers, and I would like to ask for more advice from the community. I am currently deciding between a PE fund of funds (> $18 bn AUM) and a distressed mortgage buyer. People wrote that the distressed mortgage firm would have more opportunity, but it's very new and I would be doing most of the diligence work (no quant. work). I am worried about the riskiness of this firm; the founders have had prior experience in the mortgage market and were once bankruptcy lawyers. Which one would be recommended... the PE fund of funds or the distressed mortgage shop? Thanks!

The U.S government moved toward an emergency rescue of American International Group Inc. -- one of the world's biggest insurers -- signaling the intensity of its concerns about the danger a collapse could pose to the financial system. Damn.

http://online.wsj.com/article/SB122156561931242905...