Brinkmanship and NYC hotels, COVID-19 dulls luster of senior living CRE, data tracker sees house-flipping profits rise, suburban apartments' attraction, and the deal with Opendoor.
In Today's News
The Wall Street Journal reports that New York City hotel operators fear a wave of closures is coming, especially as the city council there mandates a worker protection measure aimed at hotel sales.
Why it matters: One Big Apple might not spoil the whole bunch, but this may well be a harbinger of more to come in that bellwether market and across the country as hotels big and small reel from the coronavirus pandemic.
National Real Estate Investor says senior housing as an investment is less attractive than in years past because of the pandemic that has made operations more expensive and living in such a facility deadly for untold thousands of Americans.
Why it matters: It's no secret nursing homes and similar facilities have been tragic hot spots for COVID-19. But this report, based on a survey of a group of property owners and C-suite executives, also is telling. These are insiders who know their business well. Real estate investment trusts (REIT) investors might want to check this piece out. In fact, it's part of an in-depth series that merits reader attention if this CRE segment matters to you.
If you were one of the sellers of 53,621 single-family homes and condos considered flips this spring, your flip probably didn't flop. ATTOM Data Solutions just released a report that shows flipping profit margins increased in 62.9% of all major metros from the second quarter 2019 to the second quarter 2020.
Why it matters: This report shows there's still money to be made in this seller's market if you're in the right spot with the right offer and the right property.
Today on Millionacres
The iBuying trend -- in which big digital operators like Zillow (NASDAQ: Z) (NASDAQ: ZG), Redfin (NASDAQ: RDFN), and Opendoor buy and sell homes themselves -- took a hit when the pandemic struck. That practice is now showing signs of recovery, and one very big initial public offering could be on the way.
Why it matters: Opendoor's IPO could be an attractive investment, but it's happening through a special-purpose acquisition company, which is a little bit different animal than a lot of investors might be used to. Millionacres' Deidre Woollard explains it all, though.
Why it matters: Millionacres' Maurie Backman lays out the arguments for why now is an ideal time to act, if you're an investor who can buy into apartment complexes in suburban areas that are welcoming former city dwellers with open arms.
Get the 'Dirt on the real estate market
Are you looking for the next hot real estate market? Want to know how new rules and regulations could impact your next home purchase or real estate investment? Would you like to find out which improvements to your property will get you the most bang for your buck? We cover all these things and more in our newsletter, Paydirt.
Sign up here to get our best insights delivered to you.