Your Daily Digest for Real Estate Investing, 2/5/21

COVID-19 relief package moves closer, jobs report shows slow recovery, CEOs see little office space demand, real estate agents and the vaccine, and CoreLogic sells itself.

In Today’s News

Congress Passes Key Step to Pass COVID-19 Relief Without Filibuster

Both chambers of Congress have now passed a budget resolution, a key procedural step that sets up the ability for Democrats to pass President Joe Biden’s sweeping $1.9 trillion COVID-19 relief package without the threat of a filibuster from Republicans who oppose it.

Why it matters: That package contains multiple items of real estate investor interest, including $25 billion in rental assistance and a continuing eviction moratorium, for starters. The whole thing is dubbed the American Rescue Plan. We shall see.

U.S. Employers Added 49,000 Jobs in January

U.S. employers resumed hiring in January, but the weak pace of job gains suggested a long road remains for the recovery, The Wall Street Journal [subscription required] reports.

Why it matters: Well, at least it’s a jobs gain. In December, that metric was in the red for the first time since the pandemic began.

Work From Home Isn’t Going Away, CEOs Tell Fortune

A survey of more than 100 corporate chief executives found

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Millennials Use Online Real Estate Investing To Earn $100k Passive Income

The real estate industry has come out as a winner in 2020 with a stable bullish trend that is likely to continue. While some say that another housing bubble awaits us, the Urban Land Institute’s latest report mentions that the real estate sector is expected to observe peak land appreciation in 2022 with single-family rentals leading the way.

According to the American Modern Insurance Group, over 64 million millennials dream of becoming a homeowner someday, . Given that 56{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of millennials are in debt and behind on retirement savings, the high-capital entry into real estate investing stands in the way of their long-standing dreams.

For ages now, real estate has been controlled by elites. 90{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of millionaires created wealth by owning properties, but the times are changing. Fintechs have made it possible to remotely invest in real estate that generates passive income from day one. Before delving into how you can buy a house outright with your credit card, let’s talk about what you should invest your money in and why.

Why Own a Single-Family Rental?

Real estate investing
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Data from the Wall Street Journal estimates that there are over 16 million single-family rental homes in the US. The

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Best Real Estate Investing Courses For 2021

Real estate investing has been around for hundreds of years, but it’s now more accessible than ever. You don’t need to be a millionaire or have years of experience in real estate. With a little money, the drive to succeed, and a few courses under your belt, you too can become a real estate investor.



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We’ve determined the best real estate investing courses for 2021 for you to consider.

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Roofstock Academy

The Roofstock Academy is more than just a course. It’s a coaching program that gives you the knowledge and experience to manage a real estate business from start to finish. In addition to analytical strategy, the program covers operations, management, and even exit strategies that matter.

Who Should Take It?

Anyone looking to level up their real estate investment experience and knowledge should consider Roofstock Academy. Roofstock offers a money-back guarantee and a $2,500 credit toward your Roofstock rental property purchases. 

Flip2Freedom Academy

Not only is Flip2Freedom Academy instructional, it’s filled with plenty of mentoring and support from the real estate investment community. You’ll learn how to scale up and make the most of your humble beginnings. It’s an 8-week course, and

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Your Daily Digest for Real Estate Investing, 2/3/21

White homeownership up while Black ownership sags, some insight and action around a coastal urban exodus, investment advice on industrial REITs, and St. Joseph and home sellers.

In Today’s News

White Homeownership Rate Hits 9-Year High

HousingWire reports that despite an unrelenting COVID-19 virus and economic recession, U.S. homeownership rose in the fourth quarter of 2020 from the same period last year. And it’s reached a record high for white homeowners but has fallen for Black Americans.

Why it matters: These numbers come from the U.S. Census Bureau. Take from it what you will, but it does underscore the need to address issues — and opportunities — that have long existed in America’s housing markets.

Superstar Cities Are in Trouble

The Atlantic reports that the past year has offered a glimpse of the nowhere-everywhere future of work, and it isn’t optimistic for big cities.

Why it matters: A really thought-out piece here with lots of angles, including this: “Superstar pain could be America’s gain — not only because lower housing costs in expensive cities will make room for middle-class movers, but also because the coastal diaspora will fertilize growth in other places.”

Hedge Fund Manager Raises Bet

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What Is Multiple on Invested Capital in Real Estate Investing?

Note that “realized” means money that you’ve received. A dividend or distribution is a form of realized investment proceeds. When you sell an investment entirely, it also becomes realized. On the other hand, an “unrealized” investment is one you still own. For example, if you own shares of a REIT and they’ve doubled, the gain is known as an unrealized gain until you sell your shares.

So, let’s say you invested $100,000 in a private-equity real estate deal. After a few years, you’ve received $20,000 in cumulative distributions. And based on a recent appraisal of the property, your share’s valuation has increased to $150,000. You would add the unrealized value to your distributions, which would be a total of $170,000 in value you’ve received from your initial $100,000 investment. Dividing these numbers would produce a MOIC of 1.7, meaning your investment has increased by a total of 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}.

Advantages and shortcomings of MOIC

The main advantage of using multiple on invested capital to express your investment performance is that it breaks your return down into one easy-to-understand number. Metrics like annualized returns and internal rate of return (IRR) can be confusing to understand, especially if you’re interested in the total

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Real Estate Investing Has Never Been Easier Thanks to Roofstock

When it comes to investing, real estate has always been tough. Some investors shied away from real estate investing since it was often nerve-racking and overly complicated. Others simply didn’t have easy access to the information required to make a solid investment decision. However, thanks to an online real estate investment marketplace called Roofstock, real estate investing is now as easy as buying stock.

Roofstock
Image via Roofstock

So, why is investing in real estate, especially in single-family rentals (SFRs) a great way to diversify your portfolio? To begin with, SFRs provide a steadfast cash flow every month. And aside from being a stable source of income, SFRs tend to appreciate over time. Although there were many calamities in 2020, this hasn’t affected the SFR market at all. According to BusinessWire, despite the economic downturn, home prices in the US still rose by 9.4 percent.

As the SFR market goes through its renaissance, it is worth mentioning that in the third quarter of 2020 SFRs had a 95.3-percent occupancy rating, which is the highest rate since 1994. However, the growth of the SFR market isn’t expected to stop. Presently, the SFR market is worth around $3 trillion, and

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Risk-Averse Real Estate Investing Is Turning To Sustainability For Strong, Long-Term Financial Returns

The real estate industry, as a whole, is not known for its innovation. People in the industry often opt for proven methods rather than experimenting with new ideas. FORE Partnership, a real estate development firm operating in the U.K. and Western Europe, however, prides itself on funding innovative, sustainable projects.

“Real estate is a pretty sleepy industry — people like to do things the way that they did them on the last buildings, because they’re very risk averse,” says Basil Demeroutis, managing partner of FORE Partnership. “That’s starting to change.”

The growth of purposeful businesses — driven by market pressures, consumer and employee values, and increased business visibility — is partly behind this shift. FORE Partnership itself is a newly Certified B Corporation, a business that has met certain social and environmental standards as verified by the nonprofit B Lab. 

But, Demeroutis warns, “What we need is a clear signal to the capital markets to say what will be accepted behavior and what won’t. Because when it’s too complicated and when

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How to Start Earning from Real Estate Investing with Just $500

Everyday investors can now access high-value private real estate investing online.

Entrepreneur’s New Year’s Guide

Let the business resources in our guide inspire you and help you achieve your goals in 2021.


4 min read

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.


News reports about market volatility and the wide-ranging swings in the stock market regularly dotted the headlines last year. From the beginning of the Covid-19 pandemic to the hotly contested presidential election and everything in between, 2020 was a year of extremes that made investing a trickier and riskier venture than usual. So, although experts believe 2021 will be a better year for investing in the stock market, experts say it’s still practical to consider diversifying your portfolio with different investing options. And that’s where DiversyFund makes its entrance. 

What is DiversyFund?

DiversyFund is a different way to invest online. This platform makes it easier and less risky to invest in alternative assets. As you already know, you have to invest your money, rather

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Passive Real Estate Investing with a Delaware Statutory Trust (DST)

Real estate investors today have options that haven’t always been available. In 1988 the state of Delaware passed the Delaware Statutory Trust Act, which was groundbreaking. Revenue Ruling 2004-86 soon followed and allowed for DSTs to qualify as “replacement property” for the tried-and-true 1031 exchange (part of our tax code since the 1920s).



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One of the primary strategies for creating wealth in real estate has always been to buy properties, build equity and then sell and move on to larger properties — in many cases using leverage to expand the size and scope of one’s real estate holdings. 1031 tax-deferred exchanges have been investors’ saving grace, and they have allowed for all capital gains to be deferred as investors move on to bigger properties. Thus, allowing for real estate to be one of the greatest wealth-creation tools in existence.

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It’s estimated that over 70{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of all millionaires in the United States credit real estate as their No. 1 wealth-creation source.

No matter how great an investment real estate is, however, sometimes we reach a place in life where we no longer want to be landlords. This is where DSTs can get really interesting.

The

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Your Daily Digest for Real Estate Investing, 1/28/21

GameStop and AMC and Wall Street, Boston Properties’ big bet on big cities, Broadmark not your typical mREIT, an Israeli pot REIT for the public, and skilled nursing market values hold steady.

Today on Millionacres

Here’s What Real Estate Investors Should Know About the GameStop and AMC Surge

Shares of struggling GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) surged to unbelievable highs. In fact, GameStop shares gained 134{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} yesterday while AMC rose 301{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}. What gives?

Why it matters: Millionacres’ Maurie Backman explains why this crowdfunded attack on short-selling hedge funds really doesn’t mean much long-term good news for these two struggling companies — or for the commercial real estate owners who are their landlords.

Boston Properties Bets on the Return to Big Cities

Boston Properties (NYSE: BXP) is the largest publicly traded developer and owner of Class A office properties in the U.S., with a portfolio concentrated in Boston, Los Angeles, New York, San Francisco, and Washington, D.C. The pandemic has hit this stock hard.

Why it matters: Millionacres’ Matthew DiLallo explains why this office REIT, or real estate investment trust, has confidence in its markets, which can also present opportunity for investors who pick up on what

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