There are competing pandemic relief bills in the House and Senate, but it does seem pretty clear that a second stimulus check should be on the way soon as COVID-19 continues to pummel the economy and millions of Americans' pocketbooks.
There's still a lot of work to be done to get the House-passed HEROES Act to jibe with what the Senate will come up with as its version of the encore to the CARES Act -- including what to do about unemployment insurance and the evictions moratorium -- but it's pretty certain there'll be another round of rebate checks on the way.
These coronavirus stimulus checks will likely be the same as the first one that went out earlier this year, with some changes around the edges still to be worked out. Each adult in your household could get as much as $1,200, depending on income, and you can spend it any way you want.
1. Invest in the market
Now you're in our wheelhouse! No time like the present, especially this kind of present, to sniff out good deals in the stock market. At Millionacres, we're very into real estate investment trusts (REITs) and real estate stocks in general. And while $1,200 won't buy much real estate itself, it can up your stake, or begin one, nicely in some currently beaten-down members of the major exchanges.
Check back with us regularly for our take on specific issues. Here are some long-term plays to consider now.
- Apple Hospitality (NYSE: APLE): This stock has fallen by more than 40% this year, and while it's in the particularly hard-hit hotel REIT subsector, the nature of its business -- which favors rooms to rent over convention business -- helps position it to bounce back more quickly than some competitors. Plus, it has the liquidity to help it ride out this rough patch. Read: Where Will Apple Hospitality be in 5 Years?
- Healthcare REITs: Assisted living, hospitals, surgery centers, and similar services that are only going to grow in importance in coming years make the REITs that host these providers an attractive consideration. Read: 3 Healthcare REITs to Buy Now to find out more.
- Realty Income (O: NYSE): Now here's a steady play to get some return out of that second stimulus payment. Like most REITs, Realty Income is well off its 52-week high, plus it's paid 600 straight monthly dividends. That's more than 50 years. That's why we offer this piece: Is Realty Income a Good Fit for a Retirement Portfolio?
- REITs aren't the only real estate equities that could rally in the months and years ahead. Consider these: 3 Commercial Real Estate Stocks to Buy Right Now.
2. Invest in some reading material
How about using some of that found money to build your knowledge base? Here's some recommended reading about commercial real estate investing. Educating yourself like this could be the key to stimulating your personal economy.
And, after all, who with $1,200 to spend might not find some good ideas in a tome titled Crushing It In Apartments and Commercial Real Estate: How a Small Investor Can Make It Big?
3. Invest in virtual conferences
You also could spend some of your share of the second stimulus package on a conference or two. They're mostly virtual now, of course, so you don't have to pay travel expenses. Below are just a few upcoming examples (and keep in mind that many conference organizers offer on-demand viewing of recorded breakout sessions and the like after the event).
- Historic Tax Credit Virtual Conference by Novogradac. Historic tax credits incent investment in areas that may still yield good bargains because, well, they're old and tend to be in areas that might not be gentrified out of reach for most real estate investors.
- The same firm also is offering an opportunity zone virtual conference, and with more than 8,000 of those zones being designated since President Donald Trump signed the 2017 Tax Cuts and Jobs Act, your investment in that learning might be easily recouped and more by the opportunities and skills you access online here.
- The REITworks Virtual Conference from Nareit, the trade group for REITs. It's targeted to people who work for REITs but also real estate industry professionals across multiple job functions and disciplines.
- Then there's CRE.Converge with NAIOP, the Commercial Real Estate Development Association, which is going virtual this year but promises networking opportunities for commercial real estate investors through Zoom (NASDAQ: ZM).
- And here's a new one that might be worth checking out if you're in that asset class: the Family Office Investment Symposium.
4. Buy some personalized advice
These kinds of tax-advantaged investment opportunities have become a specialty for a subset of CPAs and attorneys who can help guide you on where to look and what to look out for, making that a good spend for your share of that additional stimulus funding.
Making the right move there would pay for the advice many times over, helping you do well while doing good in areas that Senate Republicans and House Democrats -- these programs were all created with bipartisan support -- would agree need some attention from real estate investors.
5. Donate to a political campaign
That $1,200 direct payment from Washington may not be enough to buy a whole politician, but it could at least get you a virtual handshake or invite to an exclusive Zoom call. You can take the opportunity, for instance, to talk up the double-bottom-line benefits of like-kind exchanges in opportunity zones. They may be on a certain candidate's chopping block.
6. Invest in your tenants
How about buying some gift cards from struggling restaurants? Especially those that are your tenants, if you're in that position. Helping them hang on helps everybody. You also could consider putting that second stimulus check into the coffers to make up for lost rent from tenants and letting it help enable you to give them another month or two to recover.
A rising tide lifts all boats after all, especially when you, your colleagues, your tenants, and your community are all facing the same challenge together.
We hope these suggestions help stimulate some creative ideas on your part if and when you get that second payment of stimulus cash.
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