5 at 5: Your Daily Digest for Real Estate Investing, 2/23/21
Some pandemic optimism, PPP loans for the little ones, funding for hotels like used cars, an agtech game and a new game to make sure data isn’t lost in space.
In today’s news
The most likely timeline for life to return to normal
An uncertain spring, an amazing summer, a careful fall and winter, and finally relief, says this article from The Atlantic.
The Millionacres Takeaway: While not about real estate or even investing, this is an extremely upbeat piece, citing authoritative sources on how this global nightmare has unfolded. Imagine people going back shopping, going to restaurants and hanging out in all kinds of public places. Good for CRE property owners and investors, right? The author makes pessimistic notes about mass gatherings and the chances of a resuscitated outbreak next winter, but overall this feels like good news and we can all take advantage of some.
How to get a PPP loan under the new Biden rules
As of Wednesday, companies with fewer than 20 employees will have an exclusive two-week period to apply for loans for the paycheck protection program.
The Take Away Millionacres: As Fox Business notes here, larger businesses will have to wait for their turn this time, but the move means smaller businesses – which includes many property and property managers – will get a better look at the relief this time around .
Hotel sellers use the car sales model to fund accommodation deals
Banks and owners want to get rid of unprofitable hotels that offer little prospect of recovery in the short term. Unloading at bargain prices, however, would result in losses on their balance sheets. The Wall Street Journal reports today that some are turning to what is known as vendor finance.
The Millionacres takeaway: The hospitality industry has been particularly hard hit, of course, and now the “buy here, pay here” model that works for used car dealers may present an opportunity for the savvy investor who can find the right deal on the right price in the right place.
Today on Millionacres
Is AppHarvest’s Rise Good for Investors?
AppHarvest (NASDAQ: APPH) is a new high-tech public farm in Kentucky that is bringing large-scale farm-fresh produce to nearby communities in the surrounding communities for additional facilities over the next five years.
The Take Away Millionacres: Liz Brumer of Millionacres explains how this socially conscious, eco-friendly operation may be rolled out in the right place at the right time, and how the benefits can also impact different types of side investments. (The company’s first facility is now in operation, covering 60 acres. That’s about 45 soccer fields. That’s a big greenhouse!)
Data storage in space? Here’s what investors should know:
LyteLoop, a five-year-old start-up, has raised $ 40 million from investors who chose its vision of storing data in a cloud above the clouds, and has a strategy of making the service cheaper via satellite than here on fixed Provide ground.
The Millionacres Takeout: Matt DiLallo of Millionacres explains that while LyteLoop is a fascinating idea, it is years away from rivaling the real estate investment trusts (REITs) for data centers that are already making other returns.