5 at 5: Your Daily Digest for Real Estate Investing, 12/16/2020
The Fed leaves rates unchanged, A-Rod does hotel shopping, Realtor.com avails itself, investments in convention centers and three REITs that could rock.
In today’s news
The Fed leaves interest rates unchanged and is committed to ongoing bond purchases
The New York Times [subscription required] reports that at its December meeting, the central bank kept rates near zero and tied bond purchases to the Fed’s employment and price targets.
Why It Matters: Historically low mortgage rates are unlikely to rise anytime soon, which helps keep buying and refinancing markets hot, stocks low, and bargains tight.
A-Rod swings for the fences with New Hotel Real Estate Fund
Baseball legend Alex Rodriguez is partnering with a Miami private equity firm to invest more than half a billion dollars to buy or develop hotels when the pandemic hit the industry.
Why It Matters: The Wall Street Journal [subscription required] points out that A-Rod has long been a well-heeled, well-connected real estate investor, citing his observation that “wealth is seldom created overnight” while the hospitality industry is now going under.
Realtor.com acquires rental platform available
ChicagoInno reports that Avail, which aims to help landlords more easily screen tenants, collect rents and manage maintenance requests, has been acquired by Move Inc., the parent company of Realtor.com. Avail will remain an independent platform, but will allow Realtor.com to further expand the rental space.
Why It Matters: According to Avail, it has relationships with more than 600,000 landlords and tenants. This should enable Move, itself a subsidiary of Murdochs’ News Corporation (NASDAQ: NWSA), to take advantage of new opportunities to better serve the residential real estate industry through synergies that the new acquisition creates with its listing, marketing and editorial offerings from Realtor.com.
Today on Millionacres
Convention centers expand after the pandemic
In today’s intuition news, Maurie Backman of Millionacres explains why some cities are spending huge sums of money to go on strike while the iron isn’t hot.
Why It Matters: Confident Indianapolis city guides, for example, want to put $ 550 million into a convention center to take advantage of the anticipated rebound of a deal closed by the pandemic but potentially even more popular in its scaled-down office awake. That would be good news for all these hotels and restaurants in these centers.
Buy 3 best REITs now
As 2020 draws to a close, it is a good time to sell some winners and losers and reposition your portfolio for the year ahead. Because we’re here to help, we present three Real Estate Investment Trusts (REITs) that could end up being the best buys for the final month of a year that will long live in shame.
Why It Matters: These topics have little in common other than being a REIT. One is a game of returns, the other is the dominant presence in a rapidly emerging market, and the third is a contrary choice in a rundown sector. Perhaps diversity itself can help an investor think about a strategy.