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5 at 5: Your Daily Digest for Real Estate Investing, 09/29/2020


Sep 29, 2020 by Marc Rapport

Betting on manufactured housing, sale-leaseback deals going residential, forbearances still falling, multifamily starts also down, cellphone towers and the effect on residential values.

In Today's News

Institutional Investors Betting On Manufactured Housing

National Real Estate Investor reports on how strong property fundamentals in this sector make it an attractive long-term investment bet.

Why it matters: Publicly traded real estate investment trusts (REITs) are involved in this trend, including Equity LifeStyle Properties (NYSE: ELS) and Sun Communities (NYSE: SUI), if you want to buy into this strategy a share at a time. Or a bunch of them.

Sale-Leaseback Deals Could Be the Next Big Trend for Single-Family Housing

This report in GlobeSt.com looks at how sale-leaseback transactions may be spreading from the commercial real estate market into other sectors, including single-family housing.

Why it matters: As a way for homeowners to pull equity out of their homes without having to move, these arrangements could grow in popularity as forbearances expire and foreclosures loom for many.

Mortgage Bankers Association Says Forbearance Agreements Still Dropping

The Mortgage Bankers Association says mortgages in forbearance decreased by 6 basis points from 6.93% of servicers' portfolio volume in the prior week to 6.87% as of Sept. 20, 2020.

Why it matters: While forbearance agreements continue months of decline after soaring to unprecedented heights this spring, the MBA estimates that there still are 3.4 million homeowners in such plans. That's a lot of potential mortgage trouble.

Today on Millionacres

Apartment Construction Nationally Is at a 5-Year Low

This Yardi Matrix data came from a survey of major construction firms building rental apartment buildings of 50 or more units.

Why it matters: Millionacres' Lena Katz points out that investors who prefer to buy smaller income properties -- like walk-up apartments, small cluster homes, row houses, etc. -- will find tremendous demand, especially in major cities, and not as much competition as expected.

Do Cellphone Towers Affect Residential Values?

Driven by concerns over aesthetics and safety, neighborhoods have long been fighting cell towers on their block even as their dependence on that very technology has grown. Building out 5G infrastructure will just add to that debate.

Why it matters: While the jury may still be out on the health effects of nearby cell towers -- 5G and otherwise -- just seeing people protest their looming presence provides at least anecdotal evidence that cellphone towers are an issue to potential buyers and thus to investors. Available data on whether it really affects values is limited and mixed.

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Marc Rapport has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.