One Big Thing Real Assets Adviser / IREI published an editorial that I wrote about some of the often-unseen risks in crowdfunded real estate transactions as part of their June edition: Warren Buffet famously said, “Only when the tide goes out do you discover who’s been swimming naked.” In recent...
May 27th – New High
What I'm Reading New High: The nationwide price to rent ratio has hit its highest level since at least 1975, taking out the 2006 peak. While I am still not sold on the idea that we are in a bubble, valuations are clearly very rich and we are clearly well...
May 21st – Clogged
What I'm Reading Clogged: This week's housing starts number was a big disappointment, especially given the lack of supply that has helped lead to rising prices. It has a lot to do with a lack of finished lot inventory that has caused a major bottleneck, forcing builders to slow down. ...
May 20th – Shock Absorber
What I'm Reading Shock Absorber: Normal recessions often produce a vicious cycle of foreclosures. When rents and property values fall, building owners stop paying their mortgages and lenders foreclose, pushing prices into a further downward spiral. That hasn’t happened in this cycle as regulators allowed bank to delay loan payments...
May 17th – Trickle
What I'm Reading Trickle: Big banks have seen non-performing loans on their books double year over year. The bad news (for distressed investors)? That translates into only $15.4 billion in non-performing loans on the books with another $2.1 billion in foreclosed properties - a pittance when stacked against the $250+...
May 13th – Running on Empty
What I'm Reading Running on Empty: Construction of entry level homes has been trailing off since the mid-1970s. In the early 1980s, the percentage of new homes constructed below 1,400 sf was roughly 40%. Today it sits below 10%. The combination of low supply and high demand in the space...
May 7th – All Aboard
What I'm Reading Jumping on Board: When the pandemic hit last year, many of us waited for legendary distressed investor and self-proclaimed "grave dancer" Sam Zell to make an acquisition. Well, the wait is over but the acquisition is unexpected. Rather than targeting a struggling retail, hospitality or office purchase,...
May 6th – More Than Meets the Eye
What I'm Reading Evolution: A new breed of flexible work landlords is converting unused suburban retail locations to office space, potentially transforming downtowns in the process. Wall Street Journal Bottleneck: The Biden administration is racing to end a bottleneck that has prevented state and local governments from distributing nearly $50...
May 5th – Upping the Stakes
What I'm Reading Risk On: According to CBRE's 2021 Investor Intentions Survey, most core or core-plus investors expect their unlevered target returns to fall slightly or stay the same. However, those playing in the value add and distressed spaces anticipate that returns will increase, especially those based in the US. ...
May 3rd – Chopping Block
What I'm Reading Chopping Block: The credit tenant net lease sector will be particularly hard-hit if the 1031 exchange is eliminated as proposed in the Biden tax plan. Globe Street Passed Along: Skyrocketing lumber prices have added $36k to the price of new homes, according to the NAHB. Housing Wire...