Category: Forex Trading

• Forex Trading
• By grevion2022

10 Questions To Ask Before Buying A Distress Sale Property In Lagos

Call the appraiser and ask them who’s buying appraisals at the moment or what kind of trends they are seeing (if they won’t give you specifics). They may tell you which banks have suddenly started conducting a refresh of all their asset appraisals which might be a sign that a bank is marking to market its portfolio and gearing up to do some divestments. They may set up an internal ‘special assets group,’ euphemistically named, to handle all distressed assets especially if a trickle begins to threaten to be a flood.

Lenders are another great resource for information about distressed properties. While lenders rarely proactively discuss borrowers’ distressed situations, developing good relationships with lenders can help you uncover opportunities. Another way to evaluate distressed property is based on what a resulting debt-to-value ratio may be upon stabilization and refinance. Private companies do not have an easily determined market, which brings us to an alternate form of valuation – the income stream method.

Even bought at substantial discounts, you’ll need a robust business plan to demonstrate to private equity that you are going to be able to resolve problems that prior owners could not. In order to refinance the property upon stabilization, most lenders will want to see at least a 70% loan-to-value ratio. So, once the asset is stabilized you’ll be able to refinance with $840,000 of debt assuming you are able to generate enough revenue to bring the asset value back up to its original valuation of $1.2 million.

Why do you have to verify debt?

But as we’ll go on to show, there’s an important distinction to be made between a property that is physically distressed versus one that is financially distressed. Step 2 in the D.O.V. Method is Ownership, meaning you need to verify that the party you are dealing with actually owns the asset. If they do not, it could mean that someone else really owns the asset and/or you could be participating in a scam to defraud the true owner from their asset.

It’s not uncommon to invest 30% of the property’s going-in value only to realize a 50% or more return in the property’s actual value upon stabilization. During the Covid crisis, some owners are finding that it is desirable to sell less well performing assets in order to free up cash that they need to shore up other better performing assets. It may be that they own real estate as a way to supplement their income but have other ‘day jobs’ operating private companies that are their primary source of income. If the business is suffering from a cash crunch due to Covid, liquidating real estate may be a viable option as a way to access money to support their primary business.

What Is A Distressed Property?

The trick, though, is to determine if the value really is that much higher than the asking price or whether buying the asset will be more trouble and cost than it is worth. The answer comes in a method called the D.O.V. Method (pronounced “Dove”), which stands for Debt, Ownership, and Value. The D.O.V. Method allows you to distinguish between hidden headaches and true gems before you buy them. If you’re buying a distress sale property for rent and other commercial purposes, you need to find out the cost of rent in the location. If you want to buy a distressed property, you should plan to spend a lot of time inspecting it and negotiating the price. Speak with a real estate professional who can assist you in finding the perfect property.

What was happening was, there were fewer sales happening at the low end than at the high end. And because of that, you had mix shift going on where a higher percentage of the sales were at the high end. Well, that moves the median up, even though the price at the high end was coming down. Even when there is no downturn, there are plenty of situations in which an owner simply “gets busy” and can’t pay as close of attention to the property operations or maintenance. This is often the case with smaller properties, such as 1-10-unit apartment buildings that the owner has opted to self-manage in lieu of hiring a property manager. The owner lives 45 minutes away and just hasn’t made the time to get over there to repair the siding.

• This is a hugely important factor when buying an asset because you may or may not be able to deduct depreciation of the asset from your tax liability.
• Whether you are securing, buying or selling, whether your assets are real estate, equity in a company or personal property, you came to the right place.
• Such sales typically occur when the seller is experiencing some form of financial hardship or unexpected circumstances that leave them with no choice but to sell quickly.
• Occasionally, the lender may accept a deed in lieu of foreclosure to assume ownership.

That is why the word of the seller is never sufficient to warrant the purchase of a business without the additional searches mentioned above. This is better than losing millions of naira on a dubious distress sale property. A distressed sale occurs when a property or other asset must be sold immediately for the seller to meet other financial obligations. The more distressed a property is, the better the chance it has of being purchased at a price below the market value. If the seller was in a hurry to sell, there is a good chance that he or she would have had to repair the house before listing it for sale.

The history of the land where the property is erected

So, if you know where to look, you might be able to snag a good deal by purchasing REO property. In the case of a foreclosure, lenders are often anxious to sell these homes quickly, in accordance with state laws. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The wonderful thing about doing this is that you’re not going to be doing anything different than you’re already doing and, guess what, you’ll never have to sit through investor meetings again.

Business ownership (equity) is also governed by the UCC, as well as individual state and federal securities laws. Real property includes actual land or dirt, as well as fixtures and improvements made to the land. Fixtures are a grey area, so they can either be personal property or real property.

Because most CRE brokers work on a commission basis, they must always have their ear to the ground for potential listings well before these properties ever hit the market. For example, the owner of a big-box fitness center might have fallen behind on their rent payments – a situation exacerbated during the COVID-19 crisis, having been forced to shut down for weeks on end. You might also consider the Carlton Group who do a lot of lending and have a huge network of both borrowers and investors. Get close to their basket as they’re already beginning to share access to distressed deals through buyouts of minority partnerships at discounted pricing. And this was really one of the things that got me started on this company, in this journey is, I’m selling these properties off in 2005…or beginning of 2006, when I see a problem. I have high end homes and I have low end homes and prices are going down across the board.

How do I determine ownership of a business entity?

A savvy investor can work with the buyer to structure a sale that works for both parties, buyer and seller alike. Prior to investing in distressed real estate near you, it is important to have a sound business strategy in place. Many businesses own both real estate and personal property, so the value determinations mentioned above must be applied to the overall value of the business. Second, there are also personnel issues, referred to sometimes as the human capital aspect of running a business. So in addition to all of the other issues and even beyond the dollar value of keeping those employees, there are personnel issues to be addressed. Add to this that in most business purchases, the current owner normally wants to keep the sale as quiet as possible to avoid losing its employees, so employee interviews are often not possible prior to the purchase.

In the interim, water gets to the structure and causes a slow leak, which eventually leads to a combination of mold and rot. This speaks specifically to the debt layers on a property; if they are too burdensome for the cash flow to carry, then the asset becomes distressed. Once a mortgage goes beyond 90 days delinquent it technically becomes a non-curable loan. Personal property also has a market, and there are a variety of ways to measure its value using comparisons found at used car and equipment companies and websites. The IRS has a variety of charts and rules when it comes to whether or not and how to depreciate the life of a piece of equipment. This is a hugely important factor when buying an asset because you may or may not be able to deduct depreciation of the asset from your tax liability.

Ultimately, your business broker and your accountant will help determine the value of the asset if there is no ready market by which to value it. Additionally, reviewing all of distress sale means these methods together will often yield a solid dollar value of the worth of the asset. A distressed sale may also involve various types of securities, such as stocks or bonds.

Foreclosures can damage your credit by more than 250 points, while a short sale will likely only cause about a 100-point reduction — not great, but definitely something you can overcome with time. Look to see what buildings are in the planning pipeline, going through the permitting process, or have just recently received their certificate of occupancy. Any of these may be struggling to keep up with their budgeted cash flows and coming under stress i.e. turning to distress.

Is the location notorious for cultism, incessant armed robbery, and avoidable violence? This is very important so that you don’t end up investing in a property where you won’t be able to live or rent. But regardless of which path you choose to take, there’s always the possibility that you could be outbid at auction. There’s no guarantee you’ll be able to purchase the property until the sale has been finalized. Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage. Lenders don’t typically want the responsibility of maintaining or repairing these properties and may be willing to sell them at a discount.

A distressed property is a home that is either in the process of being foreclosed, pre-occupied, or controlled by the lender or bank. Distressed properties are those that the owner is unable to make mortgage payments and/or property tax payments on. Distressed assets are assets whose market value is lower than their true worth due to solvency or cash flow issues on the part of the asset’s current operator, manager, or owner. Even so, becoming a real estate investor can be rewarding and easier if you build a solid reputation.

Such sales typically occur when the seller is experiencing some form of financial hardship or unexpected circumstances that leave them with no choice but to sell quickly. Distress sales are common in the real estate market, but they can also occur in other markets, such as the automobile, furniture, or electronics markets. Check out DistressedAssetLaw.com, your source for legal guidance in the securitization, sale or purchase of distressed assets. In these troubling economic times, it is more important than ever to have good counsel when buying or selling your assets, and we strive to provide solid and to-the-point references to help you make these tough decisions. Whether you are securing, buying or selling, whether your assets are real estate, equity in a company or personal property, you came to the right place.

Even if it does, there are dubious people out there who could forge receipt and title. Some of them do this when the property has a pending case in court and they have a slim chance of coming out victorious. They just want to collect any amount the prospective buyer is offering and they disappear. You’re the price determinant, you call the shots, because the seller is willing and most times desperate to sell because of the urgency in financial obligation. The commonest among Nigerians right now is to sell their property to offset their travelling bill for those who want to permanently relocate their family abroad.

• Forex Trading
• By grevion2022

Candlestick Patterns Types, Names,Meaning, & how to use in stock market

Candlestick patterns take into account one or more candlesticks to assist technical traders in developing inferences about future movements and price patterns of the underlying asset. These are displayed graphically on a chart, which is utilized for market analysis. Our guide to reading candlestick charts is a great place to start to learn how to interpret candlesticks for trading.

All of which can be further broken into simple and complex patterns. The bullish version is the Morning Star where the first candle is a long red body, followed by a small body that pushes to a new low. Then, the third candle is a large green candle that returns close to the opening price of the first candle. Reading candlestick patterns is quite easy once you know how to do the same. Let us find out the interpretation of candlestick patterns as well as the detection of a candlestick pattern in the chart.

6 – The trade trap

Another candlestick pattern is the doji, which many believe indicates uncertainty from traders in the market. The doji is comprised of a short or non-existent body and wicks of varying length. Sometimes, a doji can resemble a cross, because a doji’s pattern often has similar open and close positions but varying session high and low positions. Candlesticks are used in technical analysis and can help traders to accurately predict market movements. They will look at the shape and color of candlesticks to get a sense of trends and patterns in a given market. If a candlestick pattern doesn’t indicate a change in market direction, it is what is known as a continuation pattern.

Candlesticks resemble the shape of a real life candlestick and hence, the name. This suggests that such small bodies are frequently reversal indicators, as the directional movement (up or down) may have run out of steam. Careful note of key indecision candles should be taken, because either the bulls or the bears will win out eventually. This is a time to sit back and watch the price behavior, remaining prepared to act once the market shows its hand.

How to use candlesticks when trading

While we discuss them in detail in other posts, in this post we… One of the best methods to train your “chart eye” to see these patterns is to simply replay the market, noting each time you see a particular candle. Engulfing patterns offer a great opportunity to go long while keeping risk defined to a minimum. As you can see in the example below, the prior bearish candle is completely “engulfed” by the demand on the next candle.

As per the ACC’s chart above, both the risk taker and the risk-averse would have been profitable in their trades. If the Key Reversal appears near support or resistance levels, then the signal tends to be stronger. One can learn about Candlesticks and with some effort, one can memorise Candlestick https://investmentsanalysis.info/ Patterns quickly and apply this knowledge in a short time. In ancient Japan, the principles were applicable to Rice and today they are applicable to stocks. Japanese Candlesticks are thought to have been introduced to the West in the book, ‘Japanese Candlestick Charting Techniques by Steve Nison.

Different types of candlestick patterns

The opposite is true for a Bearish Engulfing where the first candle is a small green body and the second candle is a large red body that completely engulfs the body of the first candle. The hollow or the filled portion of the candlestick is called as the body of the candlestick. It’s like a combination of a line chart and a bar chart, where each bar represents all four important pieces of information for an interval. This is the reason why they are also known as Japanese candlesticks. Let’s first take a look at the basics of candles so you can understand the various parts of a candlestick. In today’s interconnected world, digital marketing has become the cornerstone of brand promotion and customer engagement.

If you don’t feel ready to trade on live markets, you can develop your skills in a risk-free environment by opening an IG demo account. It is identified by the last candle in the pattern opening below the previous day’s small real body. The last candle closes deep into the real body of the candle two days prior. The pattern shows a stalling of the buyers and then the sellers taking control. Tower bottom is a bullish trend reversal candlestick pattern of two opposite-color big candlesticks and three to five small base candlesticks.

Candlestick charts portray the market in detail

Highlighting prices this way makes it easier for some traders to view the difference between the open and close. The hammer candle formation is essentially the shootings stars opposite. It is a bullish reversal candle that signals that the bulls are starting to outweigh the bears. A hammer would be used by traders as a long entry into the market or a short exit. The bearish piercing pattern is a bearish trend reversal candlestick pattern that consists of two opposite color candlesticks with a price gap in between them.

• Selling candles in the fall covers many of the popular fall scents and holiday themed candles.
• It originated from Japanese rice merchants and traders to track market prices and daily momentum hundreds of years before becoming popularized in the United States.
• The third candlestick should be a long bearish candlestick confirming the bearish reversal.
• High Low Open Close (HLOC) charts display a similar level of detail to candlesticks – but traders tend to favour the latter, finding them easier to analyse quickly than HLOC.
• The large sell-off is often seen as an indication that the bulls are losing control of the market.

In the candlestick patterns dictionary, 37 candlestick patterns have been discussed in each post. These patterns have a high winning ratio because we have added proper confluences to each candle to increase the probability of winning in trading. The candlestick pattern is important as it shows traders that the bears still do not have enough power to reverse the trend. The candlestick pattern is made of two long candlesticks in the direction of the trend i.e uptrend  in this case.

Bearish swing

The buying price should be around the closing price of the marubozu. While investing in the stock markets, an investor is always on the lookout for the best stocks, which can help in maximising returns on investments. Profit-making through stock trading requires knowledge of stock analysis and identifying potential of different stocks. Intraday trading, especially, can be tricky for new investors who may not know when exactly they can book profits and when to cut losses. In this type of trading, the buying and selling of shares happens on the same day, and there are no open positions to be left at the end of the day.

• The pattern completes when the fifth day makes another large downward move.
• We have compiled all the types of candlestick patterns in one infographic.
• I started this website as a way to document what I’ve learned over the past few years and hopefully help others in the process.

Publicly traded companies are required to report their earnings quarterly to the Securities and Exchange Commission (SEC) on what’s known as a Form 10-Q. Companies must also file an annual report Forex scalping signals of their earnings on a Form 10-K. The Harami candlestick is identified by two candles, the first of which being larger than the other “pregnant,” similarly to the engulfing line, except opposite.

The down gap is a space between the high of the recent candlestick and the low of the previous candlestick. Long-legged Doji candlestick is a type of Doji candlestick that has a long lower and upper wick. All the Doji candlesticks have the same opening and closing price. The real body of this candle is small and is located at the top with a lower shadow which should be more than the twice of the real body. Both the candlesticks make almost or the same low.When the Tweezer Bottom candlestick pattern is formed the prior trend is a downtrend.

• Forex Trading
• By grevion2022

3 Ways To Invest In $100 Natural Gas

The basket of different securities also insulates you to some extent from the daily fluctuations of the market. You can buy ETFs in natural gas that tracks what passes for an index of ETFs. But, you can also buy ETFs made up of the stock of various natural gas companies. Cheniere Energy was the first firm to be granted regulatory approval for exporting LNG, and the company has enjoyed the perks of being a first-mover in this industry.

• A very strong market may lead to an exuberant buying of natural gas.
• They have an excellent nat gas options trading board, chain and order execution strategy tool, plus commissions are very low.
• The basket of different securities also insulates you to some extent from the daily fluctuations of the market.
• The war led many Western countries—including the U.K., U.S., and EU members—to impose sanctions on Russian energy imports, limiting the supply of natural gas in these markets and subsequently increasing prices.

Since then Shell, has slipped lower among the largest companies on the Global 500, but is still the largest non-state energy corporation in the world. The company has been involved in Russian government diplomacy, gas pricing, and pipeline access for other countries since 2000. Gazprom is a Russian state-majority energy corporation with headquarters in Saint Petersburg.

How to invest in natural gas 2023

It is not intended to track the performance of the spot price of natural gas and should be expected to perform very differently from the spot price of natural gas. UNL invests primarily in listed natural gas futures contracts and other natural gas related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less. Futures are a more difficult and less safe way to invest in natural gas. Using futures directly, you will buy natural gas today for delivery at a later time at an agreed-upon price.

• If an issuer changes its ETFs, it will also be reflected in the investment metric calculations.
• Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
• ALPS Distributors, Inc., is the distributor for funds sponsored by the United States Commodity Funds LLC and funds that are series of the USCF ETF Trust and not affiliated with either entity or USCF Investments, Inc.
• The fund surrendered 55% over the past year through June 25, mirroring the performance of the commodity.
• Instead, day traders profit from daily price fluctuations in the commodity, attempting to make money whether its value rises, falls, or stays nearly the same.

Besides this, the ongoing pandemic has become a cause for concern for many investors looking to make oil and gas investments. High volatility could be influenced by publishing important political or company news, but also because of overlapping trading hours of different locations. Natural gas is one of the most volatile raw materials and it’s still very sensitive https://forexarticles.net/more-money-than-god-hedge-funds-and-the-making-of-a-new-elite-by-sebastian-mallaby/ to political issues, for example the information from Russia about the Nord Stream 2 pipeline issue. Russian strategic management still has a huge impact on the natural gas market and both day traders and gas investors shouldn’t deny it. Of course the best time for natural gas trading is during periods of very high liquidity, when market volatility is higher.

ETF Returns

Volatility depends on the inelasticity of both demand and supply to changes in the price in the short run. A volatile oil price can destabilize production costs, affecting output, especially for production companies with oil wells. It is worth pointing out that the oil and gas sector has experienced a significant rise over the past years and promises to follow this upward trajectory in the future. Gazprom (GAZ.UK) is the biggest natural gas company in the world with a very attractive dividend ratio. Nowadays natural gas is one of the most important and basic sources of energy on Earth. The newest technology and the internet provide an opportunity to trade natural gas and make money in the energy commodity market.

Naturally occurring natural gas was discovered and identified in North America in 1626, when French explorers found natives who were lighting gases around Lake Erie. Please be aware that the presented data refers to the past performance data and as such is not a reliable indicator of future performance. Meanwhile, the demand for energy is constantly growing both in industry and households. With the carbon credits marketplace still in its infancy, it presents a novel investing opportunity. Prior to establishing e360 Power, Juan was a senior power and gas trader at Griffon Energy Capital, LLC (“GEC”) where he co-headed the power desk.

Coterra Energy (CTRA)

The company also has the best credit profile in its peer group, giving it access to low-cost debt and further reducing costs, which positions EQT to generate significant free cash flow. Buying stocks takes some knowledge of the market and its fluctuations but can be safer than investing in futures due to buying stock at the price displayed. While ETFs may be considered diluted in a sense, they’re still generally considered a safer option as you aren’t relying on the performance of one or two companies. Since both decommissioning and repurposing are highly capital-intensive activities, the role of financial institutions is critical.

As a result, it has generated excellent returns for oil investors as its oil prices grow higher. The oil industry is a highly volatile and competitive one, characterized by a higher level of risk than many other industries. After all, profits and losses can vary significantly, depending on the variation in demand, and global occurrences. Indeed, an imbalance in demand and supply can trigger a massive swing in crude oil prices. Like Gazprom and Rosneft, Shell operates in all areas of the gas industry, including exploration and production, refining, transportation, distribution and marketing, petrochemicals, and power generation.

Is natural gas a good investment?

The breakout creates additional demand regardless of the fundamentals. Hargreaves Lansdown provides access to a wide range of companies with exposure to natural gas. They have excellent market data pages for analysing the financial health of companies as well as display broker recommendations for specific stocks you are interested in buying. Therefore, buying natural gas stocks entail doing further research into the financial aspect of these companies.

As a result, another primary driver of the growth in demand for natural gas is exportation, including pipeline volumes to Mexico and LNG/CNG to overseas destinations. The US is one the largest exporters of natural gas in the world and is expected to be the largest global exporter of LNG by 2023. Investors should understand the risks before buying natural gas stocks. Natural gas may be a critical “bridge fuel” during the energy transition to lower-carbon alternatives. It can help bridge the gap by supplying cleaner baseload power and helping to offset the intermittency issues of wind energy and solar power.

Natural Gas Uses

Gas in households is also necessary for heating water and preparing meals. However, the first commercial use of natural gas occured 160 years later, in Great Britain. Around 1785, the British used natural gas produced from coal to light streets and households. 30 years later, Baltimore, Maryland, became the first city in the United States to light its streets with gas.

Natural Gas ETFs track the price changes of natural gas, allowing investors to gain exposure to this market without the need for a futures account. INVESTING IN USO INVOLVES RISKS SIMILAR TO THOSE INVOLVED WITH AN INVESTMENT DIRECTLY IN THE OIL FUTURES MARKETS, BUT IT IS NOT A PROXY FOR TRADING DIRECTLY IN THE OIL MARKETS AND THESE RISKS ARE REAL. Recent and unprecedented volatility in the crude oil markets in 2020 demonstrates that these risks are real. An investor should consider carefully the risks described below before making an investment decision. See the section of the USO prospectus titled “Risk Factors Involved with an Investment in USO.” Certain of these risk factors are summarized in the Disclosures section of this website.

• Forex Trading
• By grevion2022

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