3 Things I Wish I Knew Before I Started Investing in Real Estate

I like to think I’m a pretty seasoned real estate investor, but that wasn’t always the case. Like most, I’ve learned quite a few lessons along the way. Here are three things in particular I wish I’d known before buying my first investment property so you hopefully can avoid them before you get started.

1. Don’t underestimate how much money you’ll need

One mistake I made before buying my first investment property was not leaving enough cash in the bank to deal with unforeseen expenses. My lender required a 20% down payment and six months’ worth of mortgage payments in reserve. But that was by no means enough.

For one thing, the property needed some significant repairs shortly after closing (which I knew about). These ate up most of the reserves right away. Then one of the units took longer than expected to rent out, and the business account I

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Real estate prices are about to drop 10%

The wholesale disruption of COVID-19 is taking a toll on the real estate market. A new survey suggests that offices will remain under capacity for months, retail and hospitality will continue to struggle, and, despite some increases in single-family home values, real estate across the board will see its value fall around 10% next year.

These are some of the main findings of “Emerging Trends in Real Estate 2021,” a new report from the Urban Land Institute and PwC. Based on a survey of more than 1,600 leading real estate industry experts and interviews with more than 1,300, this 42nd annual edition of the report finds that the pandemic is going to continue to drive major changes in the way property is bought, sold, and used. Overall, the impact of the pandemic is broadly, but not universally, negative, the report notes.

“The real problems are isolated at this point to

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Ares Commercial Real Estate: This 13.8% Yielder Has 95% Senior Loans (NYSE:ACRE)

The commercial real estate sector remains a good place to find some bargains. In this article, I’m focused on Ares Commercial Real Estate Corp. (ACRE), whose stock price has fallen by 40% since the start of the year. While risks still remain, I believe the market has overly-punished this commercial mortgage REIT. I evaluate what makes this an attractive investment at present; so let’s get started.

(Source: Company website)

A Look into Ares Commercial Real Estate

ACRE is a commercial mortgage REIT that is externally-managed by the well-renowned investment manager, Ares Management (ARES). Through this affiliation, ACRE is able to leverage the Ares investment platform to obtain incremental deal flow and market intelligence from Ares’ broader resources, relationships, and experience.

What I like about ACRE is its conservatively-minded focus on senior mortgage loans, which comprises 95% of ACRE’s portfolio. Its portfolio is also well-diversified geographically, with 40% of its loans

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Edan Vidoser Shares Tips on Real Estate Investing

Press release content from NewMediaWire. The AP news staff was not involved in its creation.

Seattle, WA – ( NewMediaWire ) – October 13, 2020 – It is critical for everyone to find ways to diversify their investments because this is a great way to not only augment returns but also reduce risk. While many people think about stocks, bonds, and mutual funds, it is also a great idea to think about real estate. Edan Vidoser is a financial professional with a tremendous amount of experience in the world of real estate. In this manner, it is a good idea for everyone to listen to what professionals such as Edan Vidoser have to say. This could lead to a significant financial payoff down the road.

Edan Vidoser Discusses the Importance of Understanding the Local Real Estate Market

Edan Vidoser and other professionals have stated that the

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Your Daily Digest for Real Estate Investing, 10/13/2020

Mortgage woes mount, politics and CRE, Welltower departure rattles, three REITs that could roll, and a commission lawsuit that could roil.

In Today’s News

Late-Stage Delinquencies Spike to Highest Levels Since 1999

CoreLogic (NYSE: CLGX) reported today that despite acceleration in home purchase demand, America’s serious delinquency rate continues to climb, with employment woes much to blame for 120-day delinquencies hitting a 21-year high.

Why it matters: Three months behind on a house payment is on the path to foreclosure unless something turns around, and that may not be the job market for millions of Americans this far behind or potentially on the way there.

What a Democratic Sweep Might Mean for CRE

Read this GlobeSt.com piece for their whole story, but here’s a news nugget: Historically, CRE has performed well under both Democratic and Republican administrations, with average annual returns of 10.3% and 8.1%, respectively, since 1978.

Why it

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5% Dividend Yield From Postal Office Real Estate: Postal Realty (NYSE:PSTL)

Postal Realty Trust (PSTL) is an internally managed real estate investment trust (‘REIT’) that owns properties leased to the United States Postal Service (‘USPS’). The fragmented state of USPS properties makes PSTL an unlikely growth story with a hefty 5% dividend yield as a starting point. While the tenant concentration is a potential cause for concern, PSTL appears to be a worthy addition to any dividend growth portfolio.

Postal Office Real Estate

For those who are unfamiliar with postal office real estate, the USPS is a government entity whereas the underlying USPS properties are often privately owned. PSTL owns 666 such properties spread across 47 states, with a heavy concentration everywhere except the West coast:

(2020 Investor Presentation)

While it is tempting to put PSTL in the same league as triple net lease (‘NNN’) operators such as Realty Income (O), there are important distinctions to make. Typical NNN REITs like

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Here’s Why a Rally in Real Estate ETFs is Likely Ahead

The U.S. homebuilding sector is on fire. Thanks to extremely low mortgage rates, home sales are upbeat. But higher demand for home buying as well as lack of labor and land has boosted home prices. The median home sale price rose 15% year over year to $320,625 — the highest on record, according to a new report from the technology-powered real estate brokerage Redfin. The largest increase ever recorded in the Case-Shiller national home price index (which goes back through 1988) was 14.5% in September 2005.

Inside the Details of Rising Home Prices

In the week ending Oct 4, home prices shot up 16% from the same week a year earlier. Since the four-week period ending Jul 5, home prices have grown 6.8%. On the contrary, over that same period in 2018 and 2019, prices dropped an average of 4.4%. During the four-week period ending Oct 4, the median asking

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Ares Commercial Real Estate: A 13.8% Yield With 95% Senior Loans (NYSE:ACRE)

The commercial real estate sector remains a good place to find some bargains. In this article, I’m focused on Ares Commercial Real Estate Corp. (ACRE), whose stock price has fallen by 40% since the start of the year. While risks still remain, I believe the market has overly-punished this commercial mortgage REIT. I evaluate what makes this an attractive investment at present; so let’s get started.

(Source: Company website)

A Look into Ares Commercial Real Estate

ACRE is a commercial mortgage REIT that is externally-managed by the well-renowned investment manager, Ares Management (ARES). Through this affiliation, ACRE is able to leverage the Ares investment platform to obtain incremental deal flow and market intelligence from Ares’ broader resources, relationships, and experience.

What I like about ACRE is its conservatively-minded focus on senior mortgage loans, which comprises 95% of ACRE’s portfolio. Its portfolio is also well-diversified geographically, with 40% of its loans

Read More Read more

Unforeseen Housing Boom Could Keep Boosting Real Estate ETFs

Social distancing amid the Covid-19 pandemic certainly changed the landscape of real estate. While more businesses are utilizing their offices less with employees working from home, an unforeseen boom in housing is helping to boost the sector and real estate-focused exchange-traded funds (ETFs).

“Just six months ago, the idea of a housing boom would have seemed ridiculous as millions of Americans were losing their jobs,” an Investor’s Business Daily article noted. “But low interest rates and the work-from-home trend are stoking real estate stocks and home sales in smaller housing markets. The flip side is that once-sky-high markets have come crashing down, especially in the San Francisco Bay Area. But overall, both new and existing-home sales have reached levels last seen before the Great Recession.”

This is helping to boost homebuilder confidence, which is helping to fuel funds like the SPDR S&P Homebuilders ETF (NYSEArca: XHB) , which is up

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South Florida real estate market shifts from focusing on condos to single family homes

Not long ago, condos were the hot item in the South Florida housing market.

These days the bidding wars are being waged elsewhere.

“You live in a high rise because you like the area, and when the area businesses are shut down, there’s not much to do,” said Oscar Soberon.

A surge in people re-evaluating the urban lifestyle months after COVID-19 changed the landscape.

Soberon just moved to South Florida from Downtown Dallas, where he realized he was spending over $1,000 a month on condo fees for amenities he couldn’t use.

“I’ve heard there are a lot of people doing what I’m doing; migrating from north or bigger cities,” he said.

Tori Simkovic is looking to relocate from the happening Edgewater neighborhood to Southwest Miami-Dade but is finding she’s not alone.

“We picked our condo because it was close to Wynwood, and so we wanted to be near the bars

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