Thursday, October 25, 2012

Overview of Real Estate Finance

The demand for financing in real estate has amassed over the last century. There are countless numbers of employers around the world who specialize in real estate finance. Below is a briefing on a company that has a solid position in real estate services industry.

CBRE- Corporate Commercial Real Estate Services Firm

  • Full-Service real estate firm (Range from consulting to agency brokerage)
  • Complete thousands of assignments worldwide each year
  • Offer extensive training programs for recent graduates.
    • The Wheel Program: 12-18 month rotational program
  • Offers the ability to search/ find a property worldwide.
  • CBRE Capital Advisers: The investment banking portion of the firm 
  • CBRE Website

Real estate markets have been struggling ever since the debt crisis in 2008. Until recently, construction projects have lessened and many people were not buying. This caused a freeze in the market. Although the number has shrunk, many people have outstanding mortgages on their homes that are worth more than the actual home itself.  The lack of balance has caused a lot of foreclosures.


The Fed, in an effort to get the economy rolling, has ensured that interest rates would remain low until 2014 and potentially longer. With the lowered interest rate, this has caused a great amount of refinancing within the real estate market. This has allowed many banks to profit from the fees that they collect when performing a restructuring of a mortgage.

The Federal Reserve

An example of a firm that has recently benefitted from the growing housing recovery is Realogy. The firm owns Century 21, Coldwell Banker, Sotheby's International and other big residential brokerage franchises.  


The article points out that this recent event is one of the strongest hints that investors are beginning to restore confidence in the real estate market through their investing in Realogy; a firm that's success is dependent on the real estate market.


No comments:

Post a Comment