real estate – Medielys http://medielys.com/ Wed, 16 Mar 2022 20:57:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://medielys.com/wp-content/uploads/2021/08/favicon-2-150x150.png real estate – Medielys http://medielys.com/ 32 32 Ellington Financial Announces Estimated Book Value per Common Share as of February 28, 2022 https://medielys.com/2022/03/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-february-28-2022/ Wed, 16 Mar 2022 20:57:36 +0000 https://medielys.com/2022/03/16/ellington-financial-announces-estimated-book-value-per-common-share-as-of-february-28-2022/ Enter Wall Street with StreetInsider Premium. Claim your one week free trial here. OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $17.85 as of February 28, 2022. This estimate includes the effect of the previously announced monthly dividend of $0.15 per common share, […]]]>

Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.


OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $17.85 as of February 28, 2022. This estimate includes the effect of the previously announced monthly dividend of $0.15 per common share, payable on March 25, 2022 to holders of record on February 28, 2022, with an ex-dividend date of February 25, 2022.

Warnings

The estimated book value per common share is subject to change upon completion of the Company’s month-end and quarter-end valuation procedures for its investment positions, and any such change could be material. There can be no assurance that the estimated book value per common share of the Company as of February 28, 2022 is indicative of what the results of the Company are likely to be for the three-month period ending March 31, 2022 or for future periods. , and the Company undertakes no obligation to update or revise its estimated book value per common share prior to the issuance of the financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. The Company’s actual results may differ from its beliefs, expectations, estimates and projections and, accordingly, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “continue”, ” intend to”, “should”, “would”, “could”, “aim”, “aim”, “will”, “may”, “seek” or similar expressions or their negative forms, or by references to strategy, plans or intentions. Examples of forward-looking statements in this press release include statements regarding the company’s book value per common share. The Company’s results may fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond the Company’s control and/or are difficult to predict, including, without limited to, changes in interest rates and the market value of the Company’s investments, changes in mortgage default rates and prepayment rates, the Company’s ability to borrow to fund its assets , changes in government regulations affecting the business of the Company, the ability of the Company to maintain its exclusion from registration under the Investment Companies Act 1940, the ability of the Company to maintain its qualification as as a real estate investment trust, or “REIT”, and other changes in market conditions and economic trends, including changes resulting from the economic effects related to the pandemic of COVID-19, and responses associated with the pandemic. In addition, forward-looking statements are subject to risks and uncertainties, including, among others, those described in Item 1A of the Company’s Annual Report on Form 10-K, accessible through the Company’s website at ‘address www.ellingtonfinancial.com or on the SEC website (www.sec.gov). Additional risks, uncertainties and factors that could cause actual results to differ materially from those projected may be described from time to time in the Company’s filings with the SEC, including reports on Forms 10- Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release and the information it contains do not constitute an offer of securities or a solicitation of an offer to buy securities.

About Ellington Financial

Ellington Financial invests in a wide range of financial assets, including residential and commercial mortgages, residential and commercial mortgage-backed securities, consumer loans and consumer loan-backed asset-backed securities , secured loan obligations, non-mortgage and mortgage-related derivatives, equity investments in loan origination companies and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, a subsidiary of Ellington Management Group, LLC

Investors:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

Where

Media:

Amanda Shpiner/Sara Widman

Gasthalter & Cie.

for Ellington Financial

(212) 257-4170

Ellington@gasthalter.com

Source: Ellington Financial Inc.

]]>
Southern Missouri Bancorp: book value increase of more than $4/share per year (NASDAQ: SMBC) https://medielys.com/2022/03/15/southern-missouri-bancorp-book-value-increase-of-more-than-4-share-per-year-nasdaq-smbc/ Tue, 15 Mar 2022 15:00:00 +0000 https://medielys.com/2022/03/15/southern-missouri-bancorp-book-value-increase-of-more-than-4-share-per-year-nasdaq-smbc/ Gwengoat/iStock via Getty Images introduction I’m always interested in finding value in smaller regional banks and it’s too bad Southern Missouri Bancorp (SMBC) doesn’t get more attention here on Seeking Alpha as there has only been one article on this bank for the past 7.5 years. Given the bank’s performance in the first half of […]]]>

Gwengoat/iStock via Getty Images

introduction

I’m always interested in finding value in smaller regional banks and it’s too bad Southern Missouri Bancorp (SMBC) doesn’t get more attention here on Seeking Alpha as there has only been one article on this bank for the past 7.5 years. Given the bank’s performance in the first half of its fiscal year, I believe this regional bank deserves more attention from the investment community.

SMBC Chart

Yahoo finance

A rather strong result in the first half bodes well for the future

Southern Missouri has seen its earnings profile improve in recent quarters as interest income increases while interest expense declines. This translates into higher net interest income and in the first half, SMBC saw its net interest income increase by more than 10% to $50.7 million.

income statement

SMBC Investor Relations

The bank reported total non-interest income of $9.8 million and non-interest expense of $29.3 million, resulting in net non-interest expense of $19.5 million. This means that the provision for pre-tax and pre-loan losses in the first half was about $31 million. Southern Missouri Bancorp was also able to write off just over $0.3 million of previously recorded loan loss provisions, boosting reported pretax profit to $31.5 million and resulting in a net income of $24.7 million, or $2.78 per share.

The second quarter was relatively weaker than the first quarter, with EPS declining from $1.43 to $1.35 due to slightly lower net interest income and no provision reversal of 0 $.3 million which was fully recorded in the first quarter of the year.

Southern Missouri pays only a nominal dividend and the $0.20 per share on a quarterly basis represents a dividend yield of just over 1.5%. That means Southern Missouri isn’t exactly a good fit for an income-focused portfolio, but it also means the dividend is extremely safe. The payout ratio in the first half was below 15%, and even in the weaker second quarter of the year the payout ratio did not exceed 15%. Low yield, but sure yield.

I like exposure to residential real estate

When I look at these regional banks, I’m always keen to see what the asset side of the balance sheet looks like. As explained in a previous article on PCB Bancorp, I don’t necessarily mind higher exposure to, say, commercial real estate as long as LTV ratios are reasonable as a local bank may have a better view of the local real estate market .

On the asset side of the balance sheet

SMBC Investor Relations

Looking at Southern Missouri’s balance sheet, of the $2.92 billion in total assets, about $400 million was in fairly safe assets with nearly $185 million in cash and over $200 million in securities that are supposed to be rather liquid. I mainly want to zoom in on the $2.36 billion loan book to see the breakdown.

Breakdown of loan portfolio

SMBC Investor Relations

I was pleasantly surprised to see that about a third of the loan portfolio consists of residential real estate and another 40% is focused on commercial real estate loans. This should not be a deterrent as the most important factor here is to see what percentage of the loan portfolio is outstanding and what percentage of the loans are past due.

Lending book quality

SMBC Investor Relations

According to footnotes to the financial statements, Southern Missouri Bancorp customers appear to be making their payments on time. Of the total loan portfolio size of nearly $2.4 billion, only $3.3 billion of loans are classified as delinquent. This means that 99.85% of loans are performing, but it also means that the total amount of more than $30 million recorded for future loan losses is more than enough to cover potential problems here. It also explains why Southern Missouri was able to write off some of the historical loan loss provisions because its loan loss provision is high enough to cover current potential issues. There is, however, a point of caution here: under the CARES Act, some borrowers have been allowed to suspend payments due to the impact of COVID-19. That doesn’t mean these borrowers are insolvent because they’re just taking advantage of an opportunity offered by the government, but at the end of 2021, Southern Missouri had $23.7 million in loans that were modified under of the CARES Act. These loans are currently flagged as outstanding, but once the grace period ends, some of these loans may need to be reclassified as past due after a period of time.

Investment thesis

I don’t currently have a long position in Southern Missouri Bancorp, but the bank is definitely on my watch list. The tangible book value per share is currently around $31.5, which means the bank is trading at around 1.6 times its tangible book value, but since the bank retains most of its earnings, the book value tangible book value per share increases by more than $4/year and by the end of calendar year 2023, I expect the tangible book value to exceed $40/share.

Trading at less than 10x earnings and seeing very few loans in arrears, Southern Missouri Bancorp piqued my interest. I noticed there are options available on SMBC so I might try to write an out of the money put on southern Missouri but options are pretty illiquid there isn’t therefore has no guarantee that an order will be affected.

So for now, I’m on the sidelines but I can’t wait to see how the “new” entity after completing the acquisition of Fortune Financial will perform. This was a very small transaction, but will add approximately $250 million to the balance sheet assets.

]]>
Will a debt consolidation loan affect my credit rating? https://medielys.com/2022/03/08/will-a-debt-consolidation-loan-affect-my-credit-rating/ Tue, 08 Mar 2022 18:09:05 +0000 https://medielys.com/2022/03/08/will-a-debt-consolidation-loan-affect-my-credit-rating/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. (The Credible Money Coach explains the possible […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

(The Credible Money Coach explains the possible credit impact of a debt consolidation loan.)

Dear Credible Money Coach,

Is it true that when you take out a debt consolidation loan, it hurts your credit? —Twila

Hello Twila and thank you for your question. Debt consolidation affects your credit differently depending on how you structure it and manage loan repayments. This can be a smart way to manage multiple high interest debts without hurting your finances.

If you’re considering a personal loan for debt consolidation, compare rates from multiple lenders to get the best deal. Credible, it’s easy to view your prequalified personal loan rates in minutes.

Why do people consolidate their debts?

When you consolidate debt, you open a new credit account, such as a personal loan, credit card, or home equity loan, to repay several existing debts. This leaves you with one payment instead of multiple accounts to manage.

If you have good credit, you may be able to get an interest rate that’s lower than the combined effective rate you’ve paid on multiple debts. This saves money in the long run.

Ways to Consolidate Debt

There are several options for consolidating debt, including:

Each of these options has advantages and disadvantages. For example, personal loan interest rates are generally lower than credit card rates. But if you continue to incur credit card charges, you could go into more debt.

Doing a 0% balance transfer could save you interest for 12 months or more. But if you don’t repay the entire balance before the end of the promotional period, the interest rate could increase significantly.

If you sign up for a debt management plan with a credit counselor, they can negotiate with your creditors to pay less than you owe, lower your interest rate, or extend your repayment period. But if you can’t repay a debt management plan as agreed, your credit may suffer.

Risks of a debt consolidation loan

A debt consolidation loan can lower your credit scores in the short term. This is because new credit applications cause your scores to drop. And if you use the loan to pay off a credit card and then close it, you reduce your total available credit, which leads to lower credit scores. (It’s best to keep a paid credit card open so you have more credit available in your name.)

However, if you make your new loan payments on time each month, your credit should recover fairly quickly from the slight hit it took when you opened the loan.

Should you get a debt consolidation loan?

A debt consolidation loan is not for everyone. I advise you to think twice before emptying a retirement account to pay off debt or putting your home at risk with a home equity loan or line of credit.

And if bad spending habits are causing your debt, working with a qualified credit counselor to improve your financial habits may be more helpful than lowering your interest rate with a debt consolidation loan.

If you decide a personal loan is right for you, Credible can help. compare personal loan rates from multiple lenders without hurting your credit.

Ready to know more? Check out these articles…

Need Credible® advice for a money-related question? Email our credible financial coaches at moneyexpert@credible.com. A Money Coach could answer your question in a future column.

This article is intended for general information and entertainment purposes. Use of this site does not create a professional-client relationship. Any information found on or derived from this website should not replace and should not be taken as legal, tax, real estate, financial, risk management or other professional advice. If you require such advice, please consult a licensed or competent professional before taking any action.

______

About the Author: Laura Adams is a personal finance and small business expert, award-winning author and host of silver girl, a weekly audio podcast and top notch blog. She is frequently quoted in the national media and millions of readers and listeners benefit from her practical financial advice. Laura’s mission is to empower consumers to live richer lives through her work as a speaker, spokesperson and advocate. She earned an MBA from the University of Florida and lives in Vero Beach, Florida. Follow her on LauraDAdams.com, instagram, Facebook, Twitterand LinkedIn.

]]>
Ellington Financial Announces Estimated Book Value per Common Share as of January 31, 2022 https://medielys.com/2022/02/17/ellington-financial-announces-estimated-book-value-per-common-share-as-of-january-31-2022/ Thu, 17 Feb 2022 22:24:00 +0000 https://medielys.com/2022/02/17/ellington-financial-announces-estimated-book-value-per-common-share-as-of-january-31-2022/ Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $18.17 as of January 31, 2022. This estimate includes the effect of the previously announced monthly dividend of 0 $.15 per share. shares, payable on February 25, 2022 to holders of record on January 31, 2022, with an […]]]>

Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced its estimated book value per common share of $18.17 as of January 31, 2022. This estimate includes the effect of the previously announced monthly dividend of 0 $.15 per share. shares, payable on February 25, 2022 to holders of record on January 31, 2022, with an ex-date of January 28, 2022.

Warnings

The estimated book value per common share is subject to change upon completion of the Company’s month-end and quarter-end valuation procedures for its investment positions, and any such change could be material. There can be no assurance that the estimated book value per common share of the Company as at January 31, 2022 is indicative of what the results of the Company are likely to be for the three-month period ending March 31, 2022 or for future periods. , and the Company undertakes no obligation to update or revise its estimated book value per common share prior to the issuance of the financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. The Company’s actual results may differ from its beliefs, expectations, estimates and projections and, accordingly, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “believe”, “expect”, “anticipate”, “estimate”, “project”, “plan”, “continue”, ” intend to”, “should”, “would”, “could”, “aim”, “aim”, “will”, “may”, “seek” or similar expressions or their negative forms, or by references to strategy, plans or intentions. Examples of forward-looking statements in this press release include statements regarding the company’s book value per common share. The Company’s results may fluctuate from month to month and quarter to quarter depending on a variety of factors, some of which are beyond the Company’s control and/or are difficult to predict, including, without limited to, changes in interest rates and the market value of the Company’s investments, changes in mortgage default rates and prepayment rates, the Company’s ability to borrow to fund its assets , changes in government regulations affecting the business of the Company, the ability of the Company to maintain its exclusion from registration under the Investment Companies Act 1940, the ability of the Company to maintain its qualification as as a real estate investment trust, or “REIT”, and other changes in market conditions and economic trends, including changes resulting from the economic effects related to the pandemic of COVID-19, and responses associated with the pandemic. In addition, forward-looking statements are subject to risks and uncertainties, including, among others, those described in Item 1A of the Company’s Annual Report on Form 10-K, as amended, accessible via the Company’s website. the company at www.ellingtonfinancial.com or on the SEC website (www.sec.gov). Additional risks, uncertainties and factors that could cause actual results to differ materially from those projected may be described from time to time in the Company’s filings with the SEC, including reports on Forms 10- Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release and the information it contains do not constitute an offer of securities or a solicitation of an offer to buy securities.

About Ellington Financial

Ellington Financial invests in a wide range of financial assets, including residential and commercial mortgages, residential and commercial mortgage-backed securities, consumer loans and consumer loan-backed asset-backed securities , secured loan obligations, non-mortgage and mortgage-related derivatives, equity investments in loan origination companies and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, a subsidiary of Ellington Management Group, LLC

]]>
Substantive Opinions on Consolidation and Non-Consolidation – Insolvency/Bankruptcy/Restructuring https://medielys.com/2022/02/16/substantive-opinions-on-consolidation-and-non-consolidation-insolvency-bankruptcy-restructuring/ Wed, 16 Feb 2022 08:29:23 +0000 https://medielys.com/2022/02/16/substantive-opinions-on-consolidation-and-non-consolidation-insolvency-bankruptcy-restructuring/ To print this article, all you need to do is be registered or log in to Mondaq.com. In this article, the authors review the elements to be included in a non-consolidation opinion issued to the lender in the context of a structured finance transaction by the board of the special purpose entity. Substantial consolidation is […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

In this article, the authors review the elements to be included in a non-consolidation opinion issued to the lender in the context of a structured finance transaction by the board of the special purpose entity.

Substantial consolidation is an equitable remedy under which a bankruptcy court disregards the separate legal existence of a debtor and pools the debtor’s assets and liabilities with one or more of its affiliates, in order to make distributions to creditors as part of a plan of reorganization or liquidation.

The Bankruptcy Code does not contain specific authorization for substantial consolidation. Instead, a bankruptcy court’s power to substantially consolidate affiliated entities derives from its general equitable powers.

When affiliated entities are substantially consolidated, intercompany claims between those entities are eliminated, the assets of the consolidated entities are pooled, and the claims of creditors on each entity are treated as against the common pool of assets. Substantial consolidation generally benefits creditors of one entity at the expense of creditors of another entity because each of the consolidated entities has a different debt ratio.

Lenders in structured finance transactions often require their borrowers to be special purpose entities (“SPEs”) in order to insulate the assets being financed and the cash flows from those assets from external factors, such as the performance other assets or financial condition. condition of SPE members. Substantial consolidation of an SPE with one or more of its affiliates goes against isolating the assets of the SPE, bringing them together in a common distribution pool.

HOW IT WORKS

To provide reassurance about the lender’s interest in the assets being financed and the cash flows from those assets, the lender in a structured finance transaction often requires that a notice of non-consolidation be issued by the structure’s board. welcome at closing.

A notice of non-consolidation states that if one or more parent entities of the SPE file for bankruptcy, the bankruptcy court would respect the separate legal existence of the SPE and not order the substantial consolidation of the assets and liabilities of the SPE with those of one or more of its parent entities, guarantors or affiliated managers (such as an affiliated property manager).

The opinion confirms that the SPE structure required by the lender will be respected in the event of bankruptcy and that the assets of the SPE will remain isolated and will not be grouped in a common distribution pool with those of the subsidiaries of the SPE.

Since the Bankruptcy Code does not contain prescribed standards for substantial consolidation, the standards for review were developed through the courts. Bankruptcy courts have developed multiple, complicated, and sometimes conflicting criteria for determining whether a SPE should be substantially consolidated with one or more of its parent entities. However, four important categories of factors emerged:

  1. Record keeping: the SPE must have separately identifiable assets and liabilities, as well as separate accounting records and financial statements.

  2. Operational issues: the SPE should be sufficiently capitalized and economically independent of its shareholders.

  3. Intercompany transactions: the SPE’s transactions with Affiliates must be at arm’s length and commercially reasonable terms, and guarantees of the SPE’s obligations by Affiliates and other credit support by Affiliates must be limited.

  4. Advantages and disadvantages: whether the benefits of the consolidation of assets outweigh the harm caused to creditors by the consolidation of assets.

Essentially, the courts seek to determine whether the assets and liabilities of the SPE can be separated from those of its affiliates and whether the SPE can operate as a stand-alone entity.

The courts are also considering whether the pooling of estates would cause injustice to creditors who relied on the separate credit and existence of the host structure.

Substantial consolidation can occur when the assets and liabilities of an SPE are “hopelessly intertwined” with those of its affiliates or when an SPE has to rely on its affiliates to conduct its business.

PRACTICAL ADVICE

Affiliates of the SPE that are included in the non-consolidation notice are referred to as non-consolidation notice “matches”.

  • The basic rule, and requirement in rated transactions, is to match the SPE with any equity owner (or group of affiliated equity owners) that owns 49% or more of the equity interests in the SPE, plus any Guarantor and any Affiliated Manager (collectively, the “Related Entities”).

  • The non-consolidation notice will have the SPE on one “side” of the notice and the related entities on the other. Other SPEs to be transacted, such as operating lessees or general partners of a limited partnership SPE, should be included on the SPE side of the non-consolidation notice, matched with related entities. No notice of non-consolidation is required between the SPEs involved in the transaction.

  • In real estate transactions involving both a mortgage loan and a mezzanine loan, the mezzanine borrower is not a required SVC for the purposes of the mortgage loan, as it has a separate debt which must be isolated from the debt of the mortgage borrower. Instead, the mezzanine borrower, as the owner of the mortgage borrower’s equity, should be included as a related entity in the mortgage non-consolidation notice.

Originally posted by Pratt’s Journal of Bankruptcy LawVolume 18, Number 1, January 2022.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: Insolvency/Bankruptcy/Restructuring from the United States

]]>
Using a Home Equity Loan for Debt Consolidation – Forbes Advisor https://medielys.com/2022/02/04/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Fri, 04 Feb 2022 17:43:13 +0000 https://medielys.com/2022/02/04/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways to pay off your debt faster with help from your home.

A home equity loan allows you to use the equity in your home to consolidate your debts at a lower interest rate. However, this strategy has some drawbacks. Here’s what you need to know.

How a Home Equity Loan Consolidates Debt

Home equity is the difference between what you owe on your home (the mortgage balance) and its current value, usually based on the current appraised value. You cannot get a home equity loan unless you have some equity in your home; lenders usually look for at least 15% equity in order to lend them to you.

The more you pay to your lender, the more your capital increases. Another way equity increases is when the overall real estate market is healthy and home values ​​(or sale prices) in your area increase. A home equity loan allows you to borrow against that equity in the form of a lump sum installment loan.

This money can be used for a variety of purposes, such as renovating your home, paying for college, covering emergency expenses, and consolidating debt.

Home equity loans are a good debt consolidation tool because the interest rates are quite low compared to other forms of debt. Once your home equity loan is closed and you receive your funds, you can use the money to pay off your existing debt and then make a one-time payment to your lender until the loan is paid off, usually over a period of five to 20 years.

Advantages and Disadvantages of Using a Home Equity Loan to Consolidate Debt

When deciding whether or not to use a home equity loan to consolidate your debt, you should first consider a few important pros and cons.

Advantages

  • Lower interest rates: If you’re looking for ways to borrow money or consolidate debt, a home equity loan offers some of the lowest rates available. Currently, their annual percentage rate (APR) is around 4% to 6%. Personal loans and credit cards, on the other hand, often have double-digit interest rates.
  • Easy access to financing: Although there are certain income and debt balance requirements that you must meet, a home equity loan tends to be easier to obtain than other types of debt. This is partly because your property serves as collateral, so there is less risk to the lender than an unsecured loan, which has no assets used as collateral, as they can repossess the collateral. in the event of a defect. Therefore, the lender is more willing to offer a home equity loan.
  • Tax deduction potential: You may be able to write off some of the interest you pay on your home loan. However, you can only take advantage of this deduction if you use the money to pay for home improvements. If home renovations are part of your larger financial plan, it may be worth relying on a home equity loan rather than a credit card, especially if you’re also trying to pay off your high-interest debt.

The inconvenients

  • Risk of losing your home: Since your property serves as collateral, you could lose your home in the event of late payment or default. As long as you’re able to track your payments, this shouldn’t be a problem.
  • Your house could fall under water: Since a home equity loan relies on the value you have accumulated in your home, there is a chance that you will end up under water on your mortgage (you owe more than the value of the property) if the value of the house drops. This is not a problem if you plan to stay in your home for several years, or long enough for the property to recover in value. But if you were hoping to move soon, you might suffer a loss.
  • There could be more fees: You may need to pay to have your home appraised by a professional to determine the value to get a home equity loan. Usually it costs a a few hundred dollars but could be higher depending on where you live and the type of property. You may also have to pay closing costs on the loan.

Is a home equity loan the best way to consolidate debt?

If you’re in a strong financial position, leveraging the equity in your home to get rid of high-interest debt faster is a smart move. However, if you are not planning to stay in your home for long or you are not sure that your income will be stable throughout the repayment period, you may be better off choosing another method of debt consolidation. .

Other Debt Consolidation Options

There are several ways to consolidate your high interest debt without risking your property.

1. 0% Balance Transfer Cards

To attract new business or issue cards to existing customers, credit card companies often offer a 0% introductory APR to customers who rollover their existing credit card balance, usually from a competitor.

The introductory period typically lasts 12-18 months, during which this balance incurs no interest charges. This means that your payments go 100% towards paying off the principal balance, allowing you to get rid of this debt faster. Usually there is a 2% to 5% balance transfer fee up front. The key is to pay off your balance before the end of the introductory period or you’ll start racking up interest charges again.

2. Take out a personal loan

Personal loans, which are loans you can use to pay almost anything up to a predetermined amount, can also help consolidate your debt. Rates are generally lower than credit card rates, at least for borrowers with good credit.

There are two types of personal loans: secured and unsecured. Secured loans are secured by collateral, such as a bank account or vehicle. This helps reduce the lender’s risk, which results in a lower interest rate. Unsecured loans allow you to borrow money without providing collateral; the trade-off is that the rate may be a bit higher and you may be subject to stricter requirements.

3. Develop a debt management plan

If you’re having trouble making payments on unsecured debt, such as credit cards or personal loans, you might consider working with a nonprofit credit counseling agency to develop a debt management plan. debt (DMP). An accredited advisor will take care of your payments and negotiate on your behalf with lenders to reduce the cost of your debt. You will then make your reduced payments directly to the agency and receive regular progress reports. Registration for a DMP may be chargeable.

Find the best home equity lenders of 2022

]]>
What is a Direct Consolidation Loan? https://medielys.com/2022/01/21/what-is-a-direct-consolidation-loan/ Fri, 21 Jan 2022 20:53:26 +0000 https://medielys.com/2022/01/21/what-is-a-direct-consolidation-loan/ Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, which we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”. Many students leave school with multiple student loans – […]]]>

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, which we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Credible”.

Many students leave school with multiple student loans – usually eight to 12, depending on the program. Managing so many loans can be overwhelming, but luckily there are strategies that could help simplify your repayment.

For example, if you have federal student loans, you can consolidate them into a direct consolidation loan. This process will leave you with one loan and one payment to follow.

Here’s what you need to know about direct consolidation loans:

What is a Direct Consolidation Loan?

You can consolidate multiple federal student loans into one direct consolidation loan, leaving you with just one monthly payment to follow.

If you’re thinking about consolidating your federal student loans, here are some important things to consider:

  • Interest rate: Your interest rate on a direct consolidation loan will be the weighted average of the rates of the loans you wish to consolidate, rounded up to one-eighth of a percent. If some of your loans have high interest rates, you could end up paying a lot more interest.
  • Repayment schedule: With a direct consolidation loan, you can extend the repayment term of your loan for up to 30 years, which could significantly reduce your monthly payments. Remember that you will pay more interest over time with a longer term.
  • Loan balances: Any unpaid interest on your loans will be added to your principal balance upon consolidation. This means you could end up paying interest on a higher balance than you started with.

Keep in mind: Federal student loan consolidation is not available for private student loans. However, there are other options that might help you repay your private loans more easily, such as student loan refinancing.

Learn more: Consolidation of private student loans

How to Apply for a Direct Consolidation Loan

If you decide to consolidate your federal student loans, follow these four steps:

1. Review your loans

Before you begin the application process, you’ll need to decide which loans you want to include in the consolidation. You can consult your federal loans via the National Student Loan Data System (NSLDS).

The following loans are eligible for federal consolidation:

  • Federal Subsidized Stafford Loans
  • Unsubsidized and Unsubsidized Federal Stafford Loans
  • PLUS loans from the Federal Family Education Loan Program (FFEL)
  • Additional Student Loans
  • Perkins Federal Loans
  • Nursing Student Loans
  • Nursing College Loans
  • Health Education Loans
  • Student loans for health professions
  • Loans for disadvantaged students
  • Subsidized direct loans
  • Direct unsubsidized loans
  • Direct Loans PLUS
  • FFEL Consolidation Loans and Direct Consolidation Loans (only under certain conditions)
  • Federal Insured Student Loans
  • Guaranteed student loans
  • Direct National Student Loans
  • National Defense Student Loans
  • Parent loans for undergraduate students
  • Auxiliary loans to help students

2. Gather your documents

To complete the application, you will need a Federal Student Aid (FSA) ID. If you do not have an FSA ID, you can create one at StudentAid.gov – you will just need a mobile phone number, an email address and your social security number.

Also be prepared to provide the following in your Direct Consoidation loan application:

  • Personal informations, such as your address and telephone number
  • Financial information, such as your employer and income
  • Information about each of the loans you want to consolidate, such as the repairer and the estimated amount of the gain

3. Complete the application

Once you have gathered your information, you will need to complete the Direct Consolidation Loan Application. Completing the application usually takes about 30 minutes.

Point: You can complete the online application at StudentAid.gov, or you can submit a paper application to the federal loan officer of your choice.

4. Manage your payments

It usually takes 30-45 days to complete the consolidation. During this time, be sure to track all of your loan repayments.

Then start making payments on your new direct consolidation loan. You might consider signing up for automatic payment to avoid missing payments in the future – many services offer a rate reduction for borrowers who opt for automatic payments.

Keep in mind: You cannot consolidate federal loans while you are enrolled in school at least half-time. To be eligible, you must graduate, leave school, or drop below halftime.

To verify: What happens when you fail to repay a student loan

Benefits of a Direct Consolidation Loan

Although consolidating federal loans with a direct consolidation loan may be a good decision for some borrowers, it is not the right choice for everyone.

Here are some potential benefits to consider when evaluating your options:

  • Could reduce your payments: With a direct consolidation loan, you can extend your repayment term for up to 30 years. This could lower your monthly payments and reduce the strain on your budget, but remember it also means you’ll pay more interest over time.
  • Combine several loans: A direct consolidation loan allows you to combine your federal student loans, which can help simplify repayment.
  • Could make you eligible for loan forgiveness: If you have Direct PLUS loans, consolidating them will make you eligible for income-contingent repayment (IDR). It could also qualify you for federal student loan forgiveness programs, such as the Public Service Loan Forgiveness (PSLF).

Learn more: Best Parent Student Loans: Choose Private or PLUS Loans

Disadvantages of a Direct Consolidation Loan

And here are some possible downsides to keep in mind:

  • Higher interest costs: If you choose to extend your repayment term with a direct consolidation loan, your overall loan cost will likely increase due to additional interest charges. Also, any unpaid interest will be added to your main balance after consolidation, which means you could end up paying interest on a higher loan amount.
  • Will reset the forgiveness timeline: Consolidating your loans resets the clock when it comes to getting approved for programs like PSLF. If you have already made qualifying payments, they will no longer count towards the 10 years of payments required by PSLF.
  • Could lose your grace period: Most federal loans have a six-month grace period. If you consolidate your loans before the end of this grace period, you must begin making payments within 60 days of the consolidation being processed.

To verify: How to refinance your student loans

Is it better to refinance or consolidate student loans?

Whether it’s best to refinance privately or consolidate your student loans federally will depend on your personal circumstances and financial goals. Depending on your credit, refinancing a student loan may get you a lower interest rate, which could save you money on interest and potentially help you pay off your loans faster.

Keep in mind: Refinancing federal loans will cost you access to federal benefits and protections, such as IDR plans and student loan forgiveness programs.

For this reason, consolidation might be a better choice in some cases, especially if you plan to repay your loans over a long period.

If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes it easy – you can compare your prequalified rates from multiple lenders in two minutes.

Find out if refinancing is right for you

  • Compare actual rates, not rough estimates – Unlock rates from multiple lenders in about 2 minutes
  • Will not affect credit rating – Checking rates on Credible will not impact your credit score
  • Data Privacy – We do not sell your information, so you will not receive calls or emails from multiple lenders

See your refinancing options
Credible is 100% free!

Direct Consolidation Loans: Frequently Asked Questions

Here are the answers to some frequently asked questions about direct consolidation loans:

How long does it take for a direct consolidation loan to pay off old loans?

Once you submit a direct consolidation loan application, it usually takes 30-45 days for it to be processed and your old loans to be paid off. You can usually expect to start making payments on the new direct consolidation loan within two months.

Point: To avoid delays, make sure all the information you provide in the application is as accurate as possible.

What is the interest rate for a direct consolidation loan?

Your interest rate on a direct consolidation loan will be the weighted average of the rates of the loans you choose to consolidate, rounded to the nearest eighth of 1%.

For example: Suppose you are consolidating a $2,000 loan with an interest rate of 4.45% and a $3,000 loan with an interest rate of 6%. The blended interest rate between these two loans is 5.38% – then rounded to the nearest eighth of 1%, the rate will be 5.5%.

Can you cancel a direct consolidation loan?

Yes, if your loan consolidation request has not been processed, you can cancel it. To do this, you will need to contact the repairer who received the request.

However, if your application has already been processed and the funds have been disbursed, you will not be able to cancel the new loan.

Keep reading: Student Loan Consolidation vs. Student Loan Refinance

About the Author

Angela Brown

Angela Brown is a personal finance and real estate authority and a Credible contributor. Her work has appeared in Fox Business, LendingTree, 1800 Flowers and FinanceBuzz.

Read more

]]>
Ageson plans share consolidation and rights issue to raise up to RM179m https://medielys.com/2022/01/19/ageson-plans-share-consolidation-and-rights-issue-to-raise-up-to-rm179m/ Wed, 19 Jan 2022 16:55:35 +0000 https://medielys.com/2022/01/19/ageson-plans-share-consolidation-and-rights-issue-to-raise-up-to-rm179m/ KUALA LUMPUR (January 19): Ageson Bhd (formerly known as Prinsiptek Corp Bhd) intends to raise up to RM179.09 million – more than three times its market capitalization of RM55 million – by through a stock consolidation and a rights issue. In a filing, the construction and real estate company said it plans to consolidate 15 […]]]>

KUALA LUMPUR (January 19): Ageson Bhd (formerly known as Prinsiptek Corp Bhd) intends to raise up to RM179.09 million – more than three times its market capitalization of RM55 million – by through a stock consolidation and a rights issue.

In a filing, the construction and real estate company said it plans to consolidate 15 existing shares into a single share.

For illustration, based on the company’s last traded market price of 4.5 sen per share on January 17, the adjusted reference price would be 67.5 sen, after consolidation.

Ageson will then proceed with a capital increase with waiver rights of a maximum of 716.35 million new shares on the basis of two rights shares for one consolidated share, on a date to be determined later.

The issue price will also be announced at a later date. For illustrative purposes, based on the indicative issue price of 25 sen per rights share, the proposed rights issue is expected to raise gross proceeds of up to RM179.09 million.

Of the total proceeds, the group intends to allocate up to RM132.67 million to fund its future property development and construction projects and investments in businesses complementary to its existing business.

Up to RM40.99 million will be used for repayment of bank debt, with RM5 million allocated for working capital requirement and RM430,000 for business related expenses.

Previously, the group had, on November 29, 2021, completed a private placement raising RM13 million to repay the amount owed to RHB Bank.

Ageson had in October last year scrapped plans to issue convertible unsecured unsecured loan (ICULS) equity rights due to the “expected longer time frame” needed for the company to complete the financial year.

The rights issue of up to 12.78 billion ICULS was expected to raise approximately RM319.55 million, of which Ageson planned to use RM302.89 million to part fund a development project for use mixed in Perak with an estimated gross development value of RM1. .24 billion.

Ageson’s share price fell 22.22% or one sen to 3.5 sen, bringing it a market capitalization of RM55 million.

The stock was among the top 10 actively traded on Bursa Malaysia, with volume reaching 62.56 million shares from 2.23 million shares on January 17.

]]>
Hannon Armstrong Sustainable Infrastructure Stock: Unsustainable premium to book value https://medielys.com/2022/01/12/hannon-armstrong-sustainable-infrastructure-stock-unsustainable-premium-to-book-value/ Wed, 12 Jan 2022 18:23:00 +0000 https://medielys.com/2022/01/12/hannon-armstrong-sustainable-infrastructure-stock-unsustainable-premium-to-book-value/ LeoPatrizi/E+ via Getty Images Hannon Armstrong (NYSE:HASI) is a mortgage REIT that provides financing for various types of green projects. They were one of the first to go into space and they are very good at it. I like the business and think there are many opportunities in green finance. Unfortunately, the valuation of HASI […]]]>

LeoPatrizi/E+ via Getty Images

Hannon Armstrong (NYSE:HASI) is a mortgage REIT that provides financing for various types of green projects. They were one of the first to go into space and they are very good at it. I like the business and think there are many opportunities in green finance. Unfortunately, the valuation of HASI is excessively high, so it is actually a dangerous investment.

The Sell thesis

The nature of the mREIT business is such that the market price must always be anchored approximately around book value. The market seems to have gotten caught up in the excitement of HASI’s environmental talk and has forgotten the basics of mREIT valuation. HASI is trading at 3.13 times its book value. In this article, I intend to show that even though their investments perform extremely well, there is no reasonable outcome in which they are worth HASI’s market capitalization.

It’s not about whether they are good investments. Even with extremely optimistic forecasts, they simply cannot be worth 3.13 times the book. It is a matter of the structure being such that their value is capped.

Book value and REITs

Book value is a tricky concept with REITs. For equity REITs, this is an almost meaningless metric because properties are depreciated to 0 on the balance sheet, making the book value in no way reflective of the true value of the asset. .

Mortgage REITs are different. Loans are usually carried at face value or some measure of fair value, with companies often reporting both. Face value and fair value are useful measures for mREITs and provide an excellent guide for valuation.

mREIT anchored near book value

There are different types of mREITs such as agency mREITs, CRE mREITs, and private equity style mREITs, but they all have one thing in common: a valuation peg at approximately book value.

In fact, mREITs used to be part of the financial industry until they were phased out along with equity REITs in the 11e GICS sector.

These non-bank lenders all tend to trade around book value as shown below

Company (symbol)

To preserve

AGNC Investment (AGNC)

0.90

Annaly Capital (NLY)

0.98

New Residential Investment Company (NRZ)

0.99

Two ports (TWO)

0.92

Chimera (CIM)

0.94

Blackstone Mortgage Trust (BXMT)

1.16

KKR Real Estate Financing (NYSE: KREF)

1.11

Capital Loan (RC)

1.12

Data from SNL Financial

The list above includes both large and small companies as well as those with excellent reputations and those that have made mistakes.

Why such uniformity of valuation despite great differences between companies?

Well, there is an underlying mechanism that anchors a lender’s value to book value and it’s quite simple.

Loans tend to recoup the capital invested plus interest. The interest is proportional to the risk level of the loan. So, by lending $1,000, you recover a risk of $1,000 plus interest which has a risk-adjusted present value of about $1,000. Loans can go horribly wrong so you get $0 back, but there is no mechanism by which a loan can be a home run.

If the loan goes perfectly, you only get back the capital plus interest.

Given this capped return, it would be pretty silly to pay $3,000 for the receivables stream of a $1,000 loan and yet that’s what happens with HASI.

Unrealistic HASI valuation

Here is the Vital Statistics form on which I am basing this argument

Graphical user interface, table Description automatically generated with medium confidence

Statistics

SNL Financial

Thus, the enterprise value shown above of $6.5 billion offsets the cash and cash equivalents of the $2.467 billion in liabilities plus $4.561 billion in market capitalization. This means that to justify the current valuation, the assets, including cash, must be worth just over $7 billion.

Now let’s take a look at the strengths of the business.

Background pattern Description automatically generated

Balance sheet

10-Q

Assets of $3.9 billion are quite a far cry from the $7 billion. Let’s dig into the major line items to see if any of them might be worth much more than they carry on the balance sheet.

  • $413 million of cash and cash equivalents is worth $413 million.

The other significant items are receivables and equity investments using the equity method.

To estimate the real value of these, we need to know how HASI accounts for them. Here is their description of the 10-Q

“Investments are debt securities that meet the criteria of ASC 320, Investments – Debt and equity securities. We have designated our debt securities as available for sale and carry these securities at fair value on our balance sheet.

HASI also provided the following table:

Background pattern Description automatically generated

HASI Investments

HASI

Source: 10-Q

If the loans perform perfectly, they would functionally recover that $39 million loss provision. Even still, that brings it to just over $1.4 billion.

We should also attribute some value to embedded interest payments. A HASI bull might argue that since many of these loans are functionally super senior within the debtor’s capital stack, the level of risk is very low compared to the 5%+ interest rates on these loans. .

As such, HASI got a better deal than the market and so there would be a positive risk-adjusted present value on the interest payments.

I think there is some validity to this argument, but there is also risk on the other side with long-term, fixed-rate interest payments in a rising rate environment.

The 10-year Treasury yield just hit 1.668% and is expected to rise with the Fed’s tapering and hikes coming later this year.

Overall I think HASI is getting a better than average deal on their loan book so one could spot the fair value a bit higher than the balance sheet but the difference would be in the tens of millions, not in the hundreds of millions.

As such, the loan portion of HASI fits the mREIT profile perfectly in that it must be firmly anchored to book value.

A little more leeway in investments using the equity method

Equity investments, as opposed to loan investments, may fluctuate somewhat more in value with the performance of the underlying asset. As such, if there is a bucket in which HASI’s book value underestimates the actual value, this would be it.

As of 9/30/21, HASI held $1.468 billion in investments under the equity method. Here is how HASI counts them:

“Our investments in renewable energy or energy efficiency projects are accounted for using the equity method. Under the equity method, the carrying value of these equity-accounted investments is determined based on the amounts we have invested, adjusted for equity in the profit or loss of the investee allocated based on the LLC agreement, less distributions received.

In short, they are recorded at cost with cash flow type adjustments. Thus, the delta between the real value and the book value of this item would be the change in the fair value of the instrument beyond the cash flows it generated.

So, let’s look at investments using the equity method.

Automatically generated table description

Investments under the equity method

HASI

The largest is Jupiter Equity Holdings, a company that owns nine operating wind farms producing about 2.3 gigawatts. HASI contributed $540 million to the project in July 2020.

It was a good time to build renewables because the performance metrics look solid. This deal is made more secure with power supply deals already under long-term contract, so I suspect it will cash in well. That said, there are two factors that I believe limit how much this could have appreciated beyond book value:

  1. July 2020 is not that far away.
  2. HASI has a preferred interest in the project rather than a common tranche. Thus, its cash flow is more secure, but the upside is also reduced.

Lighthouse Partnerships is a similar investment in that HASI holds a preferred tranche in a large solar and wind project. HASI’s total investment is expected to be $663 million, but as of 9/30/21, only $219 million has been invested.

This too looks like a lucrative investment, but it is still in its infancy. Given recency and prime tier, I suspect fair value is only slightly north of invested capital.

HASI does everything right and every investment it makes seems to be relevant. I particularly like how they structure their trades so that they are so high in the capital stack that their returns are near AA caliber.

Even their equity investments are structured with a preferential yield which greatly increases HASI’s chances of profitability in the companies.

It’s a conservative company with the expertise in green financing to get the right deals with the right partners. I strongly believe that they will consistently generate strong IRR at relatively low risk. If the company was trading at around book value, I’d be happy to stock up on stocks.

A simple case of overvaluation

The challenge with HASI’s current valuation at 3.13X Pound is that given the conservative nature of their investments, it is absurd to value them so highly. A conservative lender simply cannot triple their money in just a few years.

On each of the HASI investments that I have reviewed, I believe they got a good deal, making the present value of these investments perhaps 10% or even 20% greater than their invested capital.

As such, the $7 billion valuation is absurd. Given that the capital has been so well invested, I think the $3.2 billion invested by HASI as of 9/30/21 is probably worth around $3.6 billion. Adding the $413 million in cash and cash equivalents, I would see the asset value at $4.13 billion.

Don’t pay $7 billion for $4.13 billion

]]>
Divorce court records reveal Dr Dre’s assets, checking account balance and average monthly income … and a settlement may have been reached! https://medielys.com/2021/12/30/divorce-court-records-reveal-dr-dres-assets-checking-account-balance-and-average-monthly-income-and-a-settlement-may-have-been-reached/ Thu, 30 Dec 2021 12:29:30 +0000 https://medielys.com/2021/12/30/divorce-court-records-reveal-dr-dres-assets-checking-account-balance-and-average-monthly-income-and-a-settlement-may-have-been-reached/ [ad_1] splits: 26 Dr. Dre and Nicole Young married in 1996. They have two children together. She filed for divorce in June 2020. During their 24 years of marriage, Dre has achieved previously unimaginable heights of success as a musician, producer and entrepreneur. We have been tracking Dre’s income since 2007. Based on our calculations, […]]]>


[ad_1]

splits: 26

Dr. Dre and Nicole Young married in 1996. They have two children together. She filed for divorce in June 2020.

During their 24 years of marriage, Dre has achieved previously unimaginable heights of success as a musician, producer and entrepreneur.

We have been tracking Dre’s income since 2007. Based on our calculations, between 2007 and 2020, Dre generated personal income of just over $ 1 billion. His biggest revenue windfall came in 2014, when he and Jimmy Iovine sold Beats By Dre to Apple for $ 3 billion.

The acquisition, which was announced on May 28, 2014, called for Apple to pay Dre, Iovine and their private equity partner The Carlyle Group $ 2.6 billion in cash and $ 400 million in shares. Dre and Jimmy each owned 25% of Beats at the time of the sale, which meant they had both generated $ 750 million in pre-tax revenue. After tax, they both made around $ 450 million on the cash portion of the sale.

I bring up all of this because, when Nicole filed for the divorce, she claimed that they did not have a prenuptial agreement. In fact, technically speaking, she claimed they had a marriage contract at the start of their marriage, but he supposedly tore it up a few years later. Like, I physically tore it up and threw the pieces in the trash.

Dre recalled it differently. In December 2020, his legal team submitted the 1996 marriage contract to divorce court. This marriage contract clearly stated that all property acquired during their marriage would be separated, as in… what he would earn would be hers and what she would earn would be hers.

On the other hand, the marriage contract allowed Nicole to apply for spousal support. And boy did she ask for spousal support. After Dre filed the marriage contract, Nicole applied for spousal support. The amount she asked for?

$ 2 million PER MONTH

She also requested a one-time payment of $ 5 million to cover her legal fees.

A judge ended up ordering Dre to pay $ 300,000 in temporary monthly support.

(Photo by Mike Coppola / Getty Images)

Fast forward a year and this battle is one step closer to resolving it.

This week, Dr. Dre submitted a detailed account of his financial situation. This is usually a sign that the two warring parties are aiming for a settlement agreement and now it is enough for them to determine exactly what is to be won.

Below are the seven juiciest financial details we just learned from Dre’s filing:

# 1) Dre’s average monthly income over the past few months was $ 228,000. This works out to about $ 2.7 million per year. He earns about $ 84,000 per month from stock dividends.

# 2) In the past year, Dre sold $ 73 million in Apple shares.

# 3) In 2020, Dre paid himself $ 4 million from his personal LLC.

# 4) Last year, Dre’s total expenses were $ 17 million. He spent $ 3.2 million on mortgages, $ 2.3 million on “entertainment,” $ 250,000 on groceries, $ 177,000 on charitable donations, $ 156,000 on health care, $ 104,000 on vehicles and $ 21,000 in mobile phone plans. He also gave his children just under $ 8 million.

This is where it gets really good.

# 5) According to his file, Dr. Dre currently has $ 182 million in his checking / savings accounts. Specifically:

$ 182,744,809

# 6) The total shares currently held by Dr. Dre are $ 6 million, which implies that he has sold the vast majority of his Apple shares. This corresponds to point 2 above.

#seven) In addition to his stocks, checking / savings accounts, Dr Dre has an additional $ 269 million in “real and personal property”. These are usually real estate, art and other durable goods.

When you add up, Dr. Dre’s assets are currently worth around $ 470 million.

According to the most recent court order, Dre will continue to pay Nicole monthly support payments of $ 300,000 until a final settlement is reached. This settlement will either be a large lump sum payment, a large monthly support payment, or a combination of the two. It is up to the divorcing parties to decide which route they wish to take once they have decided to reach a settlement.

According to sources who reported to Rolling Stone, the couple leave with a lump sum of …

$ 100 million

The Rolling Stone source claims that according to the settlement agreement, Nicole will soon be leaving the couple’s Malibu mansion in the coming weeks. She would also keep a Rolls Royce, a Range Rover, an Escalade limousine and a Spyder motorcycle along with all of her jewelry.

There is one last question. How is Dre worth “only” $ 470 million? Shouldn’t he be close to billionaire status? Well, first of all, we’ve known for years that despite what you might have read on a thousand websites, Dr Dre is not and never was a billionaire.

On the flip side, I will admit that in recent years we have estimated his net worth to be between $ 600 million and $ 700 million. In our defense, I still assert that Dre’s net worth could have been $ 600-700 million if you factor in the value of his future royalty stream and, more importantly, the rights to his catalog. of songs. I don’t think the $ 470 million figure includes the value of his lifetime rights. Considering he owns tracks from Eminem, Snoop Dogg, 50 Cent, his own music and dozens of other artists… his music catalog is probably worth hundreds of millions of dollars based on recent comparable sales.

[ad_2]

]]>