An inverted yield curve occurs when the yields on long-term bonds are lower than the yields on short-term bonds. In other words, investors demand a higher rate of return for holding shorter-term bonds than longer-term bonds. This phenomenon is significant because it is a strong predictor of an oncoming recession. Typically, longer-term bonds offer higher […]
What is Capital Stack? Multifamily properties, also known as apartment buildings or rental communities, are a popular investment option for real estate investors. However, financing such properties can be challenging as they require substantial capital investments. That’s where the capital stack comes into play. The capital stack is a financing structure that combines various types […]
In the world of multifamily property underwriting, one crucial factor that investors and lenders must consider is the impact of interest rates on underwriting. This consideration becomes especially important during periods of rising interest rates. In such times, it is essential to determine whether to use trended rents or untrended rents when assessing the property’s […]
As inflation has been increasing, the Feds start tightening the money supply but increasing interest rates. Effectively, this leads to less borrowing and should start reducing the demand for money. As the demand for money declines, inflation will start decreasing as the Feds predicted and as history has shown many, many times in the past. […]
The housing market benefited the most from lower interest rates, but once rates started tightening, housing started heading downward. If you assume a 20% down payment, the rise in mortgage rates and home prices since December 2021 amounts to a 52% increase in monthly payments on a new 30-year mortgage for the median existing home. […]
Real estate tokenization is an emerging topic in the investment industry that is gaining traction abroad and may soon find its way to the US markets. This list of pros and cons is meant to give our readers a brief explanation of some core facets of tokenization. To learn more about tokenization and how it […]
Nowadays, there is a wider variety of real estate investment opportunities than ever before. This opportunity can make a first-time investment in the real estate industry overwhelming for new or seasoned investors. Let’s go over the 3 common types of real estate investments that beginner-level investors will encounter. We will also discuss the time and […]
The all-time high demand for housing paired with the extreme shortage in the market is a major area of opportunity for multifamily assets. Currently, there is a housing deficit of approximately 3.5 million homes nationwide. Between this demand and the average rising price of houses, there is an attractive space for multifamily assets that have […]
Having a little extra money on the side is a great way to make your life better. Expanding your income beyond your day job can allow you to increase your net worth and provide you with some invaluable peace of mind. The extra income can also allow you to live more comfortably and spend money […]
With 2021 coming to an end, the real estate sector has exhibited exemplary growth despite the pressures caused by the pandemic. The growth of the industry has been significantly boosted by investors looking for a stable asset class. Real estate has also been a great investment vehicle because of the diverse and profitable returns. Now […]
