BUSINESS / REAL ESTATE / FINANCE

ALTERNATIVE REAL ESTATE FINANCING –

CONTRARIAN FUNDS

AssociatedNews.US

(AN) – As the American real estate finance markets seek to recover from the financial crisis in America, many entrepreneurs are seeking out new financing solutions.

Contrarian real estate funds, and public vehicles are two of the alternative answers that smart entrepreneurs are beginning to utilize.

“A contrarian real estate fund,” says Charlene Kalk, of ArtfieldInvestments.com, “is a fund set up contrary to conventional wisdom or traditional thinking.”

So when markets are crashing and recession or depression sets in, when everyone else is scared and pulling their money out of markets and stuffing it in their mattresses, Contrarian funds typically roll up their sleeves and go to work buying up all the property and/or businesses they can buy. Their rationale is that, in the long run, real estate and the stock market always go up. Buying real estate or stock when it is cheap only increases the profits made when the markets turn around.

Alternatively, some contrarian funds specialize in providing real estate finance during unstable financial times when banks and other traditional finance institutions are not funding. Again, their rationale is higher interest rates and, hence, more profits are available when banks are not providing the finance needed in the market.

“If you are a homeowner and having a hard time funding or refinancing your home, you might seek out a contrarian fund for your financing,” says Charlene Kalk. “If you are in commercial real estate, then you might consider going public with your holdings. There is plenty of contrarian money available right now for the right companies on the emerging “public markets.” We have a number of contrarian investors who understand the current crisis and are not afraid to invest in “public” real estate companies.”

Charlene’s company, Artfield Investments, is a consulting investment banking firm that specializes in emerging public companies. More information about utilizing alternative real estate financing such as contrarian funds and “public companies” can be found on her web site, ArtfieldInvestments.com.