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 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 matters: If your candidate choices are based on how you think the outcomes will affect your real estate investing, this is information you might like to know.

Senior Housing CEO’s Sudden Departure Ratchets Up Industry Turmoil

The Wall Street Journal posted today its take on the sudden departure last week of Welltower (NYSE: WELL) chief executive Thomas DeRosa.

Why it matters: With its size and stature, Welltower is a bellwether in the senior housing industry, not just among real estate investment trusts (REITs) that work in this space. The WSJ piece is worth a read for their take on what this means and for an update on the state of senior housing REITs altogether.

Today on Millionacres

Three REITs That Could Double Your Money

Millionacres’ Matt Frankel picks out three stocks that might be easy to overlook because of the niches they occupy — if you can call New York City a niche.

Why it matters: Malls, office space, and hospitality businesses are beaten down right now. Matt shares why these three REITs might be poised to rally, if you don’t mind buying some risk in search of reward.

Real Estate Commission Lawsuit Continues. Is Agent Income at Risk?

A federal judge has given permission to proceed to a lawsuit filed against major national brokerages over the alleged anti-competitive nature of commission splits and multiple listing services.

Why it matters: The suit, which could become a class action on behalf of homebuyers, seeks to end the practice of seller’s agents paying commission to buyer’s agents. Millionacres’ Deidre Woollard lays out what a sea change that could bring.

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