- Keys
- Posts
- Results are in! 2024 investor sentiment 😬
Today’s top stories…
Fundrise survey: 2024 retail investor sentiment revealed!
Navigating landlord insurance vs. homeowners insurance
Blackstone's bold proclamation: Is CRE the "generational buying opportunity" you've been waiting for?
🔥 Deal of the Day! 🔥: 2 bd | 2 ba | Joshua Tree, CA
Today’s mortgage rate (30 Yr. Fixed): 6.87%
Fundrise Survey Examines 2024 Retail Investor Sentiment
According to a recent Fundrise survey, a whopping 85% of retail investors think 2024 will be just as good or even better than 2023. 93% of them are planning to pour more money into investments this year. Time to make it rain!
Nearly half of these investors are looking to ditch their cash and dive into the hottest market segments. And what's got everyone buzzing? You guessed it – artificial intelligence!
Now, I know what you're thinking. "Brett, how can I get a piece of this AI pie?" Well, let me break it down for you. 68% of investors believe AI has the highest growth potential compared to other trendy sectors like climate tech and e-commerce. That's a pretty big deal!
The best opportunities in AI are often hidden behind closed doors, accessible only to the elite investors. In fact, 78% of retail investors feel like they're missing out on the private market action.
So, what's a determined investor to do? According to the survey, 84% of you want to learn more about AI, 78% crave access to the top investment opportunities, and 71% are looking for funds that spread out the risk. Oh, and let's not forget the 66% who want to get in on those AI companies before they hit the stock market.
Retail investors aren't just excited about the potential profits – they genuinely believe AI will make the world a better place. 74% think it will improve the average person's quality of life, and 77% say it will give the economy a much-needed boost.
Interested in learning more? Check out this article from the Motley Fool: “How Artificial Intelligence Is Changing the Real Estate Market“
Investor's Guide: Landlord Insurance vs. Homeowners Insurance Explained
When it comes to landlord insurance vs homeowners insurance, it's crucial to understand the differences and make an informed choice that suits your specific needs.
First things first, let's break down the key distinctions:
Landlord insurance is tailor-made for rental properties, providing property and liability coverage when you're not residing in the house.
Homeowners insurance, on the other hand, safeguards your dwelling and offers liability protection when you're living in the property. It can work for investors who rent out a portion of their home.
While there are some overlaps between the two, landlord insurance goes the extra mile with additional coverage for:
Property damage caused by natural disasters
The landlord's personal property used for running the rental
Liability coverage for tenant or guest injuries on the property
Loss of rental income if the property becomes uninhabitable due to a covered event
So, what factors should you consider when choosing the right insurance? Here's a quick checklist:
Do you live on the property or rent it out full-time?
Are you renting to long-term tenants or short-term guests?
How much rental income are you generating?
Do you have valuable personal belongings in the rental property?
What are the local rental laws and regulations?
Is your area prone to natural disasters or high crime rates?
It's essential to crunch the numbers and see how insurance costs impact your return on investment. On average, landlord insurance premiums are 20-25% higher than homeowners insurance for the same property. However, the extra cost is justified by the added protection and peace of mind it provides.
To get the best bang for your buck, don't forget to:
Maintain your property and keep it safe for tenants
Install a reliable security system
Avoid keeping expensive personal items in the rental
File claims judiciously
Customize your policy to meet your specific needs
Bundle different types of insurance for potential discounts
Pay premiums annually instead of monthly (if there is a price difference)
Work with a specialized insurance company for investment properties
In a nutshell, if you're renting out a portion of your primary residence occasionally, homeowners insurance might suffice. But if you're running a full-time rental business, landlord insurance is the way to go.
Blackstone Calls Real Estate A "Generational Opportunity"
It's time to talk about the opportunities that lie ahead in the world of commercial real estate (CRE). While the naysayers might be painting a gloomy picture, the experts at Blackstone are singing a different tune. They're calling it a "generational buying opportunity," and it's time to sit up and take notice!
Now, I know what you're thinking. "But Brett, haven't property values been falling? Aren't high interest rates making CRE a risky bet?" Well, let me break it down for you.
Yes, the past couple of years have been tough for CRE, with rising rates putting pressure on valuations and office buildings facing challenges. But according to Nadeem Meghji, Blackstone's Global Co-Head of Real Estate, all of that is already priced into asset values today.
In fact, Meghji sees a bright future ahead. Here's why:
Inflation is cooling off, and interest rates have come down from their October 2022 highs.
Credit formation is picking up again in the real estate sector.
All-in borrowing costs have dropped by a whopping 200 basis points in just 5-6 months.
Meghji also points out that new construction in Blackstone's core sectors is down 30-70% compared to two years ago. This means that in the medium term, we could see a sharper recovery than the market expects.
Of course, not all CRE sectors are created equal. Blackstone is being selective, focusing on high-growth areas like data centers while steering clear of struggling sectors like office buildings. In fact, data centers are Blackstone's fastest-growing asset class, with just 2% vacancy, 25% rent growth, and demand that's 10 times higher than it was five years ago. And with the AI revolution just getting started, the potential for growth is immense.
So, what does this mean for you? It's time to take a cue from Blackstone and be strategic in your investments. Look for undervalued yet high-quality REITs that align with Blackstone's focus areas, such as:
BSR REIT (OTCPK:BSRTF): This Sunbelt multifamily landlord trades at a steep discount to its net asset value and offers a juicy 4.7% dividend yield.
STAG Industrial (STAG): With a lower FFO multiple compared to its peers and impressive organic growth, STAG is a compelling choice in the industrial logistics space.
Remember, the key is to invest in the most attractive types of CRE with the fastest growth and greatest upside potential. By following in Blackstone's footsteps and being selective in your investments, you could be positioned to capitalize on the "generational buying opportunity" that lies ahead.
🔥 Deal of the Day! 🔥
Price: $875,000
This Joshua Tree gem combines luxurious comfort and privacy with its stylish 2-bedroom/2-bath split floor plan, featuring direct access to a shaded porch and an innovative, energy-efficient 'spool' from both bedrooms and the living area, alongside a fully furnished, expansive private yard with dining nooks, a firepit, and a custom horseshoe court, all within walking distance to downtown's vibrant scene and just minutes from the national park, making it an impeccable vacation rental haven.
Airdna data:
Estimated monthly payment: $5,447/month (if financed)
Estimated monthly revenue: $3,450/month
Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.
See you tomorrow!
✍️ Brett