Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Synthetic Real Estate Investment for the Small Investor Paperback – January 27, 2010
|New from||Used from|
"Children of Blood and Bone"
Tomi Adeyemi conjures a stunning world of dark magic and danger in her West African-inspired fantasy debut. Learn more
An embryonic market such as the one for real estate derivatives does not usually get much air-time and it is refreshing to see Bill Mather's project come to fruition. It is all the more surprising to find that the second book on real estate synthetics is written not by a seller of such products but by a real estate professional.
Bill takes us through a fascinating history of derivatives, a survey of urban economics and places real estate synthetics firmly back into Modern Portfolio Theory. His description of possible applications is lucid and honest and totally original. It is lucid in that his treatment of real estate synthetics is accompanied by practical examples and analysis which shed light on an under-used product. It is honest as Bill goes out of his way to distinguish between assumptions which may turn out to be flawed (such is the life of the portfolio optimizer) and elements of robustness. It is original in its tone - approachable and didactic without arrogance, the incorporation of a history of derivatives that is both light and immensely enjoyable reading, and the appearance of synthetic flipping and synthetic rental property, concepts that are firmly rooted in the world of the residential real estate practitioner.
Throughout the last few months and numerous exchanges, I have literally witnessed Bill's thinking evolve from an understanding of the value of synthetics into an eminently practical, focused and evangelistic zeal. His end-user vision is neither that of the theorist, of the broker or product developer, nor that of the banker and seller of synthetics: that alone makes the content of this book valuable and all the more credible.
The purist, the pragmatist and the visionary all have something to learn from this book. I recommend it very highly indeed.--Christophe Cuny, Property Derivative Expert (added by author)
About the Author
William Mathers is a real estate developer and professional structural engineer. Over the past several years, he has been involved in numerous projects of different size and type. His interest in synthetic real estate came about as a direct result of the collapse of the housing market and financial system. As a development partner who had worked for years getting a few large projects pushed through approval, he witnessed the collapse firsthand. Many of the projects he was a partner in would now fail. He had worked for years with almost nothing to show for it. With a background conducting forensic investigations, he set about to find out how such devastation could be avoided in the future. Figuring his research would only require a few days, he set about to solve how to control risk in his future real estate projects. One and a half years later, after several dead ends he came across synthetic real estate positions. The markets and mechanisms were already in place. It was a perfect new way to invest and hedge real estate.
Author interviews, book reviews, editors picks, and more. Read it now
Top customer reviews
There was a problem filtering reviews right now. Please try again later.
Will Rogers once said, "Buy land. They ain't makin' more of the stuff." You can speculate on the slopes of Mt. Kilauea, or a beachfront resort in Dubai, but I'd like to see your pro forma before I invest! And I'm sure many bankers would agree so I hope you have a pile of cash. You don't, do you.
That is why I recommend William S. Mathers' Synthetic Real Estate Investment For the Small Investor (2010). Mr. Mathers is a real estate developer and structural engineer who investigates the world of economic theory, property derivatives and real estate investment. Synthetic real estate is "a new way for small investors to capitalize on residential real estate investment with the added advantage of less capital and risk." Now "investors can profit in rising and falling housing markets without having to purchase physical property."
I recommend this book to any investor who wishes to diversify their portfolio with real estate. Especially if you don't have a pile of cash and you don't want to loose the jet!
One seldom encounters the War of Spanish Succession in books on investing. It is but one of the entertaining elements which build to a highly-readable guide to property investment particularly the use of derivatives to gain synthetic exposure, and how a small investor can structure his portfolio effectively including them.
While there is some necessary technical detail, it's far more accessible than most basic guides (anyone who's read Hull or the like will know what I mean) and the range of subject that one would not immediately link with NPI swaps or resi forwards makes this book far more fascinating to read than most financial advice works.
I'm currently writing a book on real estate derivatives for institutional investors and investment professionals - I'd be delighted if it is half as useful and interesting as this book should be for the small investors of the title.