Real Estate News: Real Estate Investing Podcast

In this Real Estate News Brief for the week ending May 23rd, 2020... we have a new start to the economy, builder confidence, and markets where home prices are rising. We begin with economic news from this past week, and the beginnings of an economic reopening for all 50 states. Although reopening guidelines are different from state to state, many are lifting restrictions on recreational activities for Memorial Day weekend, with the appropriate social safety measures. There's been a decreasing number of COVID-19 cases and deaths across the nation and in Europe. Africa and other parts of the Americas are still seeing an increase. So the world is not out of the woods yet. But the holiday weekend may mark a turning point for the U.S. www.NewsForInvestors.com

While many short-term rental owners can't attract guests right now, others can't get rid of them. There's word that wealthy guests are squatting in fancy summer rentals because of the coronavirus ban on evictions. That's putting owners in a tough spot. There's word that property owners are worried they could miss out on the summer tourist season. It's not clear if this is happening in other areas, but the New York Post writes that some short-term guests in the Hamptons are refusing to leave, once their reservations have ended. Local landlords and real estate brokers say these tenants moved into their water-front accommodations before the eviction ban went into place and are now saying they can't afford to pay the rent, or to move anywhere else. And these are not cheap places or low-income guests. www.NewsForInvestors.com

The Florida governor is taking steps to restart the vacation rental business but some short-term rental operators are not very happy about the rules. Governor Ron DeSantis banned most short-term rentals in March, while allowing hotels and other kinds of lodging to remain open. Some have filed a lawsuit over a vacation rental ban that they feel has unfairly singled them out. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending May 16th, 2020... a $3-trillion relief bill that will help landlords, a new surge in mortgage applications, and a heart-warming rent payment story out of St. Louis. We begin with economic news from this past week, and House approval of a $3-trillion relief package that includes $100 billion for a national rental assistance program and $75 billion in mortgage relief for multi-family landlords. It also provides another round of stimulus checks for individual taxpayers, and almost $1 trillion to state and local governments faced with steep declines in tax revenue. It's not clear how the legislation will fare in the Senate. Senate Majority Leader Mitch McConnell recently said that the three coronavirus bills already approved are enough for the time being. www.NewsForInvestors.com

A return to normal means winning the war against COVID-19 and one weapon in our war chest could be a UVC light bulb. Man-made UVC devices are not new, but their use is expanding as a way to kill the virus. Amazon just announced the development of a UVC robot to disinfect warehouses and Whole Foods grocery stores. There's also another development at Columbia University that could easily kill this virus and keep future ones from ever getting a foothold. www.NewsForInvestors.com

A national rent tracker for apartments shows that May rent collection is better than April. That's not what many people expected given the massive number of job losses and efforts by a small number of activists encouraging a rent strike. Property teams within our own network are also reporting good results for single-family rentals. The National Multifamily Housing Council says that by May 6th, 80.2% of tenants had made a full or partial payment on their rent. Last month, only 78% of tenants had done so. The survey included 11.4 million apartment households and was done the first week of May. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending May 9th, 2020… an economy in turmoil, words of encouragement from Warren Buffett, and a pick-up in mortgage activity. We begin with economic news from this past week and another round of job losses. The latest weekly report shows an additional 3.2 million unemployment claims for a total of more than 20 million jobs lost in April. That's brings us to about 33 million jobs lost since the pandemic began. www.NewsForInvestors.com

The Tampa housing market could be among the first to come roaring back to life after the economy opens back up, according to John Burns Real Estate Consulting. Dallas was named as a potential post-pandemic boom market as well, along with a few other areas. John Burns Real Estate Consulting is well-respected for doing in-depth research on the real estate industry, and specifically for national builders. This latest report looks at geographic opportunities for real estate investors within three categories. www.NewsForInvestors.com

We're in the midst of severe economic shock right now. There are over 30 million job losses in one month, closed businesses, and a 4.8% drop in the GDP, but somehow home prices are rising in some places. That may be a disappointment for homebuyers and real estate investors looking for a deal, although some researchers see lower prices in the coming months. Home prices dropped dramatically during the housing crisis ten to twelve years ago, but that's not what's happening this time around so far. As the Wall Street Journal points out, we've been dealing with a tight inventory for years and, right now, supply has gotten even tighter because sellers don't want to list their homes and because many builders have put things on pause. www.NewsForInvestors.com

The lure of the big city might be fading a bit. A new Harris Poll shows that a growing number of people would like to move away from the city, and that preferences for other lifestyle habits are changing. The poll includes a wide range of questions from how people intend to buy their food in the future to whether they are worried about dying from the virus.. This particular Harris Poll has been tracking coronavirus trends since mid-March and includes more than 300 questions. It appears that many of the questions have been added in more recent weeks, such as the ones about migrating to more rural areas. Each "wave" of the poll is done weekly over a three-day period with the latest information from the last week of April. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending May 2nd, 2020, First-Quarter GDP, a new low for mortgage rates, and a surge in demand for single-family homes. We begin with economic news for this past week and the staggered reopening of some state economies. At least 30 states have started allowing businesses to carefully reopen, or have announced plans to do so this month, but each state has different guidelines and timelines. www.NewsForInvestors.com

Many U.S. malls are at risk of closing for good because of the pandemic. A new analysis by Green Street Advisors is predicting that coronavirus shutdowns will push department stores into bankruptcy, and force more than half of all U.S. malls to close by the end of the year. If you are a homebuyer or investor, you should check on the status of a nearby mall to see if it might affect your property value. Green Street says there are 1,000 malls still operating in the U.S. and about 60% of them are anchored by department stores... www.NewsForInvestors.com

California is not known as a landlord-friendly state, and a few new laws are adding to that reputation. In addition to statewide rent control that caps rent increases and makes it difficult to evict bad tenants, at least two cities in the San Francisco Bay Area have completely outlawed the use of criminal background checks to screen tenants. These "fair chance" housing laws are designed to prevent homelessness among the formerly incarcerated, but are they fair to landlords? www.NewsForInvestors.com

Real estate is holding strong among Americans who see it as the best way to invest. This marks the fifth year in a row that real estate has taken the number one spot in a Gallup poll on investing preferences. It was conducted in early April, after the recent COVID-19 stock market sell-off. It's no secret that I'd choose real estate over stocks, but this poll shows that many other Americans feel the same way. 35% of the pollees chose real estate as their preferred method of investment while 21% chose the stock market. That's a bigger gap than last year. Stocks lost six percentage points, while real estate held on to 35. Gold and bonds both trail stocks but they took points away from stocks as people put more emphasis on those options. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending April 25th, 2020... the staggered reopening of the U.S. economy has begun, two small business rescue programs are being refunded, and the home sale slump could be reversing. We begin with economic news from this past week, and plans, by some states, to slowly restart their economies. The state of Georgia is taking the first steps with the cautious reopening of some businesses on Friday, April 24th. While states, like Georgia and South Carolina, are planning to ease stay-at-home restrictions, others are extending them because modeling shows they are still at risk. A model maintained by the University of Washington shows that Montana could safely reopen on May 1st, and that Alaska, Hawaii, North Carolina, Vermont and West Virginia could do so on May 10th. At least half the states should wait until May 25th or later. www.NewsForInvestors.com

We're sure to see some changes in the post-pandemic economy, and one of them could be an increased demand for single-family rentals. Potential homebuyers who have been furloughed or have lost their jobs no longer qualify for mortgages. Those who do have their jobs may not have the down payment, high credit score or reserves needed to get a loan. But with the concern that social distancing could be a longer-term way of life, they may also prefer to rent a single-family home instead of an apartment if they are forced to remain renters for awhile. www.NewsForInvestors.com

A recent change in lending could impact real estate investors, especially if more lenders follow suit. Over the weekend, JPMorgan Chase stopped accepting HELOC applications. The bank posted the notice on its website saying it's a temporary suspension due to the current economic uncertainty created by COVID-19. Lenders have also been tightening loan standards. Chase says it will continue to review already-submitted applications for home equity lines of credit, and HELOCs that have already been issued are not affected. But investors who might want to jump on a real estate buying opportunity by tapping into their home equity, face a shrinking pool of funding options. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending April 18th, 2020... we'll take a look at whether the pandemic will impact home prices, the good news about rent collection, and what banking regulators are doing to help home sales. We begin with economic news from this past week, which hasn't been great but there are a few bright spots, including plans to loosen up "stay at home" orders over the next several weeks. www.NewsForInvestors.com

If you are a landlord in need of financial help from the disaster loan program and you haven't applied yet, you'll now have to wait until Congress agrees to provide more funding. The Small Business Administration announced on Wednesday, April 15th, that the Economic Injury Disaster Loan, or EIDL, and the Paycheck Protection Program, or PPP, have both run out of money and will not be accepting new applications. Already submitted applications are still being considered, but the process is slow-going. www.NewsForInvestors.com

Rent default reports are coming in and they are not as bad as some headlines might lead you to believe. You may have seen reports that 30% of renters were unable to pay their rent in April because of pandemic-related lay-offs and furloughs. But that's somewhat misleading. There has been an increase in defaults, but it's not 30% above normal. In this podcast, we're going to take a look who's paying, who isn't, and what landlords can do to increase rent collection while they also help tenants survive this crisis. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending April 10th, 2020… a new deadline for the 1031 exchange, a housing market rebound, and a pullback by lenders. We start with economic news from the past week… but first, important news about the 1031 exchange. The IRS published a notice on Thursday, April 9th, announcing extended deadlines for 1031 exchanges because of the coronavirus. The new deadline is July 15th for anyone with a deadline between April 1st and July 15th. That applies to both the 45-day deadline and the 180-day deadline. www.NewsForInvestors.com

The Federal government is pumping trillions of dollars into the U.S. economy to offset damage from the coronavirus pandemic. But, as businesses remain closed and much of the U.S. workforce unemployed, we will likely see some amount of damage -- including the sale of distressed properties. While that's never a good thing for the seller, it creates a potential buying opportunity for the real estate investor. The Wall Street Journal reports that a number of institutional investors are sitting on piles of cash for what could be a once-in-a-generation opportunity to buy properties at a big discount. www.NewsForInvestors.com

Forbearance will help save property owners who can't pay their mortgage, but who's going to save the mortgage service companies that have to pay the bond holders? Major players in the housing industry say that without a bailout, companies like Quicken Loans, Freedom Mortgage, Mr. Cooper, and other nonbank mortgage companies could have a serious liquidity problem. FHFA Director, Mark Calabria, doesn't agree. He says there's no evidence of a systemic failure among nonbanks. The pandemic has triggered concerns about another foreclosure crisis because of all the job losses. That prompted the creation of a mortgage forbearance program for homeowners as part of the $2 trillion Cares Act. www.NewsForInvestors.com

Airbnb has set up a fund to help hosts dealing with coronavirus cancellations. Travelers ditched plans for vacations, work trips, and family get-togethers when the virus spread. And then, Airbnb promised full refunds. Airbnb's "Host Relief Fund" will help cover some of the lost revenue, but many hosts are coming up short. We don't know yet how the coronavirus will impact the overall housing market, but for Airbnb hosts, the impact was felt almost immediately. Big events that draw huge numbers of people to destination hot spots were cancelled, and along with them, Airbnb reservations. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending April 4th, 2020... rent payments are now due, new data on top population growth cities, and how renters are dealing with their plans to move. We begin with economic news from this past week, and the distribution of stimulus checks to American consumers. Adults earning less than $75,000 will get the full $1,200 amount. Parents will also receive $500 for each dependent child. The IRS is expecting those payments to start going out by the end of April. That should help many Americans pay their bills, including the rent. www.NewsForInvestors.com

Just days after the largest stimulus package in history was signed, talks have begun on what could be "phase four" of the coronavirus stimulus plan. A few of the ideas being discussed include major infrastructure spending and a rollback on the cap for SALT deductions. President Trump signed phase one of the virus rescue plan in early March. It authorized $8.3 billion for the initial response including money for state and local governments, virus research, testing, and vaccine development. Phase two was signed on March 18th for $100 billion that expands unemployment benefits and provides tax credits to employers for paid sick leave. Phase 3 is the big one so far. The $2.1 trillion dollar package went into effect on March 27th and includes major relief for consumers in the form of direct bank deposits or checks, tax deferrals, state aid, loans to small and large businesses, and some grants for several impacted businesses like airlines. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending March 28th, 2020… ugly numbers for job losses and economic growth, a possible "snapback recovery", and encouraging news about medical supplies. We begin with economic news from the past week and a $2.2 trillion dollar COVID-19 rescue package that helps individuals and companies. The short list of money hand-outs includes $100 billion for hospitals and virus-related healthcare, $290 billion for an infusion of cash into consumer pockets, $350 billion for small-business loans, and $500 billion for hard-hit industries, like the airlines. www.NewsForInvestors.com

There's something in it for everyone. The federal government approved a $2 trillion dollar virus relief package last week called the CARES Act. That stands for "Coronavirus Aid, Relief, and Economic Security." The legislation is almost 900 pages long so it's not a quick read, but details are emerging on what's inside. And, there is help for people in the real estate industry including real estate investors and landlords. I want to talk about the CARES Act, but first, I'd like to mention another big announcement on Monday, March 30th. The U.S. Department of Homeland Security issued an advisory that said real estate should be considered an essential business. www.NewsForInvestors.com

As unemployment claims soars due to "Shelter in Place" mandates in cities across the nation, lenders who offer non-qualifying mortgage loans are also shutting their office doors. There have been several headlines recently about lenders suspending non-QM loans which could impact real estate investors. An article in HousingWire on March 20th suggested that non-QM lending is the latest victim of the coronavirus. (1) Non-QM loans had become more common in recent years for borrowers who don't have a traditional income source, and need alternative methods of income verification. Many real estate investors fall into this category. And due to the uncertainty created by the virus, several lenders have recently announced they are suspending non-QM loans. www.NewsForInvestors.com

The U.S. was expecting to have one of the best spring home-buying seasons in years, until we got hit with the Coronavirus daily news. Still some markets continue to boom, while others are on a time-out. In California, where there's a statewide shelter-in-place order, the California Association of Realtors also advised against any open houses, home tours or face-to-face meetings with clients. (1) That scene is playing out in other markets as well, even as low interest rates dangle like a carrot in front of our noses. www.NewsForInvestors.com

There's been a lot of talk about rent moratoriums and eviction bans for struggling tenants, but what happens when landlords can't pay mortgages and other expenses for those very same rentals? There's been a growing chorus of questions and lobbying efforts in regard to relief for property owners, and some big announcements about forbearance options that apply to landlords in both the single-family and multi-family realm. It's now critical that people are able to "shelter in place" to help stop the spread of the virus. Many local governments have issued orders to stay at home, except for essential needs that include jobs that are also considered essential. While some people are going to work and returning to the safety of their homes, many more are laid off and sheltering in place 24/7. www.NewsForInvestors.com

An invisible enemy is attacking, and it doesn't seem to matter where you are or who you are.. The Coronavirus is quickly spreading to all parts of the world. Whether people are sick or not, many can't go to work, and that could mean missed rent payments -- especially for people living hand to mouth. So what is the appropriate course of action? Headlines across the nation are echoing the same idea -- that cities, counties, states, and even the nation, impose a temporary moratorium on evictions while this virus scenario plays out. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending March 21st, 2020... we have economic news that's contaminated by the coronavirus, a tax day reprieve, and mortgage moratoriums. We're in an unprecedented situation right now as this microscopic virus threatens the health and safety of everyone in the world. It's gotten to the point of statewide lockdowns in California and New York to help slow the spread of the virus. Other states are likely to follow. There are also bans on non-essential travel across the northern and southern borders, but President Trump says we're not at the point of a national lockdown, just yet, although other nations have done so. www.NewsForInvestors.com

There's nothing more unifying than a common enemy, and that's what the nation is facing right now -- a fast-moving virus that can be as mild as a common cold or flu for most people, but absolutely deadly to others. The Federal government and the Federal Reserve are taking drastic steps to shore up the economy, while individuals and families are going into survival mode. It's not the end of the world, however. Good things will come out of this. As exponential tech entrepreneur and futurist Peter Diamandis said in a blog about the virus, "With Pause, Comes Opportunity." www.NewsForInvestors.com

In this Real Estate News Brief for the second week of March.. we have coronavirus repercussions, mortgage relief options, and something that might lift your spirits from Airbnb. We begin with economic news from this past week and a half. So much has happened because of the coronavirus. The Fed cut interest rates to zero and launched a $700 billion stimulus program. President Trump acknowledged that the pandemic is "really bad" and issued guidelines to help prevent the spread of the virus. Cities across the nation are shutting down bars, restaurants, and public gatherings. Stores are dealing with panicked buyers. Officials are encouraging people to shelter in place. There's talk of shutting down our borders and postponing the Presidential election. The stock drop has now erased about 80% of the gains seen since the 2016 election, or what was previously called "The Trump Bump." Companies will be reporting their first quarter earnings and many are expected to miss their forecasts. The second quarter will likely be worse. And, economists are saying the recession has begun. www.NewsForInvestors.com

What a week. While the Coronavirus and its effect on Wall Street, the economy and of course, our health and safety has dominated our conversations, I'm going to focus on how it could affect the U.S. housing market. As we know, home sales were headed for a hot spring season because of low mortgage rates and a strong economy. And then the coronavirus came along. It has brought mortgage rates even lower, but it's also causing an economic disruption like we haven't seen before. Will it be a minor blip on the charts? Or… is this the black swan event that could usher in that recession so many people have been fearing? www.NewsForInvestors.com

The mortgage business is blazing a new trail right now. Rates have fallen to a record low. They have almost hit 3%, but they aren't as low as they could be. Experts say they should have dipped below 3% by now but that busy lenders are holding back on lower rates to help control demand. It's anyone's best guess as to what happens next, but it's quite possible that even lower rates are on the way. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending March 7th, 2020... we have an emergency interest rate cut, all-time low mortgage rates, and a virus-inspired surge in real estate investing. We begin with economic news from this past week, and a quarter percent rate cut by the Fed. The central bank cut rates to help protect the economy from the effects of the coronavirus. The overnight lending rate is now from 1 to 1.25%. Fed Chief Jerome Powell offered reassurance that the U.S. economy is still strong, but he says the spread of the virus will likely affect economic growth. But, he says "we will get to the other side" and "return to solid growth and a solid labor market as well." www.NewsForInvestors.com

States that aren't tax-friendly to retirees are making some changes to keep their seniors from moving away. Maryland is one of them. The governor says that high taxes are driving seniors to places like Florida which is the most tax-friendly state in the nation for all age groups. But the tax situation is especially important for people trying to stretch their retirement dollars, and there are big differences in the kinds of tax breaks you get from each state. www.NewsForInvestors.com

Pet-friendly rentals are becoming a "must-have" for many renters. Zillow says that 46% of renters have pets, and 48% won't rent a place without that option. For many landlords, it's much easier to say "no." But while they are avoiding a few risks, they are also missing out on some big benefits, including additional rental income. There are several benefits to going "pet-friendly" starting with a larger pool of applicants because almost half the renter population has a pet. To offset the potential risk, many pet-friendly landlords charge an additional amount each month for the pet, along with a pet deposit. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending February 29th, 2020... we have an early launch to spring sales, concern about the coronavirus, and top cities for population growth. We begin with economic news from this past week. The spring homebuying season is off to an early start. New home sales rose 7.9% in January. That's more than 18% higher than January of last year. It's also the highest level of sales since July of 2007. That's despite higher home prices. www.NewsForInvestors.com

As homeownership gets more expensive, Millennials are getting more resourceful. The National Association of Realtors says the number of first-time buyers who bought homes with housemates doubled in 2019. It wasn't a huge percentage, but some experts say it could be the future of housing -- at least for people trying to buy their first homes. www.NewsForInvestors.com

Nebraska isn't waiting for the ax to fall on housing affordability. State lawmakers are debating legislation that will allow the upzoning of single-family neighborhoods. It's called "The Missing Middle Housing Act" to address future housing issues before they become a problem. CityLab described the effort as a way to "win the battle before the war begins." www.NewsForInvestors.com

HUD is hoping to make it easier for landlords to comply with Fair Housing Rules by issuing new guidelines on assistance animals. The U.S. Department of Housing and Urban Development says there's been a huge increase in the number of requests for emotional support animals, including many that are not legitimate. The agency says the new guidelines offer some clarification of the rules and step-by-step guidance for landlords. www.NewsForInvestors.com

In this Real Estate News Brief for the week ending February 22nd, 2020... the spring construction boom, the latest surge in foreclosures, and the new Gen Z homebuyers. We begin with economic news from this past week. The latest report on existing home sales shows a dip in January. According to the National Association of Realtors, they were down 1.3% to an annual pace of 5.46 million homes. www.NewsForInvestors.com

A sleepy town in North Carolina has become the victim of its own popularity. Lake Wylie is a lakefront community that has mushroomed in size since the year 2,000. Unfortunately, population growth has outpaced the town's ability to keep up, and local officials have placed a temporary ban on new development. This is just one example of a city that needs "smart growth" instead of "fast growth." www.NewsForInvestors.com

In this Real Estate News Brief for the week ending February 15th, 2020... the benefits of mortgage shopping, 401k millionaires, and moving for love. www.NewsForInvestors.com

The U.S. has a population problem and it's not because we have too many people. The nation's birth rate is declining. It's half of what it was when the baby boomers were born, and is currently at a record low -- so low, that the incoming generation can't replace the outgoing one. According to some social scientists, that could have a serious impact on our future -- both socially and economically. www.NewsForInvestors.com

There's been a lot of worry about the cost of California's new solar power requirement for new homes. But the January 1st start date has now come and gone, and it appears the mandate has had little impact on home buyer demand. There has been a small decline in affordability for some people, but according to real estate experts, the mandate appears to be a "non-event." www.NewsForInvestors.com

In this Real Estate News Brief for the week ending February 8th, 2020… new lower mortgage rates, the city with a 5-year rent freeze, and a Netflix series about gentrification in Los Angeles. www.NewsForInvestors.com