Rental aid still languishing, multifamily investors rebuff climate risk, a fire-ravaged fixer-upper, why not to pay cash, Walker & Dunlop’s lofty goals.
In Today’s News
The $46.5 billion rental aid program created to pay rent accrued during the pandemic continues to disburse money at a slow pace as the White House braces for a Supreme Court order that could strike down a new national moratorium on evictions. The New York Times reports today [subscription required].
The Millionacres takeaway: Just what it’s going to take to get this money flowing to tenants and landlords remains to be seen. Maybe it’ll take an eviction tsunami.
Investors are still buying properties in markets prone to wildfires, floods, and hurricanes, betting on insurance and mitigation measures for protection, says this report today on WealthManagement.com.
The Millionacres takeaway: Will that be a good bet? A lot of that will depend on insurance rates, the willingness of people to live in these areas, and on nature itself.
Today on Millionacres
A recent CNBC story reported that a home in Walnut Creek, California, just sold for $1 million, well above the original asking price of $850,000. In this hot seller’s market, this would not normally be newsworthy. But the four-bedroom, two-bath home had been badly damaged in a fire last year and is currently uninhabitable.
The Millionacres takeaway: Our Barbara Bellesi Zito writes that this crazy real estate market will likely yield some more hard-to-believe tales of frenzied demand. But, she adds, buyers and investors should understand that “fixer-upper” is a term used very loosely, though only the latter group stands to benefit.
If you’re looking to buy an investment property today, you may be inclined to come in with a cash offer. Doing so could increase your chances of getting your offer accepted. But given today’s mortgage rates, is that a mistake?
The Millionacres takeaway: Our Maurie Backman says that while many real estate investors routinely make cash offers on homes, in today’s mortgage rate environment, that makes little sense. For the most part, she argues that you’re better off borrowing on the relative cheap and conserving cash for when other opportunities arise.
Commercial real estate (CRE) finance company Walker & Dunlop (NYSE: WD) has grown tremendously since third-generation CEO Willy Walker took the reins over a decade ago. But management doesn’t plan to pump the brakes on growth just yet.
The Millionacres takeaway: Our Matt Frankel shares Walker & Dunlop’s ambitions for the next few years and why he thinks the firm may well achieve them. Its track record of meeting recent, equally lofty goals is a big reason why.
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