Weekly Observations for Investors

Before We Get Started:

If you're interested in a free deal review, please email me your pitch deck and associated docs. My expertise lies in SFR, BTR, Multifamily, and select Land Development projects. This review will be high-level, and any personal feedback I provide should not be used as a determination in making investment decisions.

Recent Blog Posts:

• Initial Meeting with Sponsor - What Questions Should be Asked. Click Here for Blog Post.

• A Wedding Venue Goes Under (And Almost Takes Us With It). Click Here for Blog Post. 

Mini Takes:

Willy Walker’s Interview with Peter Linneman

• Tariffs likely won’t have as significant an impact on inflation as many think it will. Additionally, Trump is using them as a negotiation tool.

• The Federal Reserve’s housing data, which projects a 4.8% rent increase between April 2023 and April 2024, is an overallocation and doesn’t reflect the current reality. This increases some inflation measures unnecessarily.

• The bond market tends to fixate on small inflation movements, which isn’t always relevant.

  

• Cap rates are influenced more by capital flows than by relatively small fluctuations in interest rates. Peter believes that as capital continues to flow, cap rates will compress. The discussion at minute 23:40 is particularly insightful on this topic.

• The debt ceiling is largely political theater and isn’t a major concern from an economic standpoint.

• US federal debt has a minimal impact on interest rates.

Full disclosure: I only had time to listen to the first half of the podcast before writing this. I’ll follow up next week with insights from the second half of the "Mini Takes."

Important News for Investors:

• Major Job Growth Projected for Southern Cities - Click Here for Article.

• Rising 10-Year Treasury Yield Sparks Concern in CRE Market - Click Here for Article.

• Real Assets in Focus: Grappling with Higher Interest Rates - Click Here for Article.

• CBRE Predicts Cap Rate Compression in 2025 - Click Here for Article.

• Economists Revise Inflation Predictions for Trump’s Second Term - Click Here for Article.

Important Social Media for Investors:

There are 3 main debt metrics in real estate...Click Here for Post.

Chris does not seem impressed with this deal. I’m not either. Click Here for Post.

It’s almost as if building more housing could help decrease or stabilize rents. Perhaps some of the rent control advocates should pay attention! Click Here for Post.

Click Here for Post.

Click Here for Post.

Interesting Real Estate: Purchase a share of this mansion previously owned by MJ!

Apparently, you can now buy a share of what used to be Michael Jordan’s mansion, with prices starting at $1 million. Anyone interested in splitting the share price with me? You take 99%, I’ll take 1%!

Shares of Michael Jordan's Former Highland Park Mansion Being Sold by New Owner