Sprout Mortgage Shuts Down

An unfortunate headline in the troubled mortgage industry this week, Sprout Mortgage abruptly shut down its operations on July 6th, laying off all 300 employees. The leading non-QM mortgage originator, was reportedly finalizing a lifeline from Citi when the CEO decided to pull the plug, call off the deal and close down the company. AccordingContinue reading “Sprout Mortgage Shuts Down”

Survey finds 40% of real estate investors sourced their last deal off-market

A recent survey of 50 real estate investors published by OfferMarket found that off-market transactions are more common that one might expect. 20 respondents, 40%, confirmed their most recent deal was sourced off-market than on the MLS. The real estate marketplace provided the following reasoning for the higher than expected percentage of off-market transactions: realContinue reading “Survey finds 40% of real estate investors sourced their last deal off-market”

Equity Residential Taking A Beating ($EQR)

Equity Residential (ticker: EQR) reports challenging Q3 operating conditions with declines in urban rental portfolio lease rates and occupancy. Shares drop 7%, now down 46% YTD. Distribution yield currently 5.2%. Perhaps most interestingly, here is their breakdown of occupancy rates: Asset Class October 22, 2020 June 30, 2020 Suburban 95.8% 96.4% Urban 94.4% 94.7% UrbanContinue reading “Equity Residential Taking A Beating ($EQR)”

Dion McNeeley: Achieving Financial Independence Through Real Estate

You can do this.  Flip your thinking. Saving money on coffee every day doesn’t add up as fast as eliminating your largest expense. Housing costs.  I was 40. A single dad with three kids. Inherited tons of debt (89k) in the divorce I didn’t even know existed.  I was tired of losing income to thingsContinue reading “Dion McNeeley: Achieving Financial Independence Through Real Estate”

Are Residential REITs Undervalued?

Real estate investment trusts focused on high density prime metro area apartment ownership and management are historically a stable asset class offering attractive dividends. These REITs have benefited from stable rent growth and low interest rates. 5yr Beta: 0.5 to 0.85 Dividend yields: 2.5% – 4.5% From February 2020 pre-COVID highs: Equity Residential (ticker: EQR)Continue reading “Are Residential REITs Undervalued?”

House Hacking

What is house hacking? House hacking is the act of buying a home or multi-unit property that you live in and rent out the remaining rooms or apartment units. House hacking is probably the smartest way to get into real estate ownership and investing. Here’s why: Dramatic reduction in monthly expenses. The rental revenue youContinue reading “House Hacking”

Blackstone Sweetens Deal To Sell 8,400 Spanish Properties for $1.2B USD

Blackstone is trying to sell its 8,400 unit portfolio of Spanish residential and commercial properties for $1.2B USD. The deal is complicated by the fact that Spain is in a deeper recession than the 2008 financial crisis. Markets and investors don’t like uncertainty, so to deliver confidence to any would-be suitors, the global private equityContinue reading “Blackstone Sweetens Deal To Sell 8,400 Spanish Properties for $1.2B USD”

Warren Buffett, Real Estate and Contrarianism

Warren Buffett has dispensed invaluable investing advice over his remarkable career. While Buffett is not focused on real estate investing, his advice holds true regardless of asset class. “Be fearful when others are greedy, and greedy when others are fearful.” – Warren Buffett The above quote is a hallmark of the contrarian approach to investing.Continue reading “Warren Buffett, Real Estate and Contrarianism”

Simply Ryan Homes

Simply Ryan is a new line of entry-level homes complete with a “simple buying process” to lure renters to home ownership. Depending on region, prices are “from the upper $100s” and “from the mid $200s”. If you are not familiar, Ryan Homes, a member of the NVR family (NVR, Inc.), is one of the largestContinue reading “Simply Ryan Homes”