December 2019 - Monthly Real Estate Investing News

For a free e-version text “ebook” to 587-317-6099
Breakout Rooms!!!
A chance to connect with another investor across the country for
8-12 minutes in a private setting.
You will be split up into groups of 2-3 and the timer will be set!
Think of it like speed dating but without having to leave your
house. I know its a little awkward but have fun with it!

December
2019
Monthly
Market
Update
The GreenSheet
#8

Lane Kawaoka, PE - Lane@SimplePassiveCashflow.com
Join the Free Hawaii Investor club!
Text “aloha” to 314-665-1767
Dean H Ueda RS-78445
Keller Williams Honolulu RB-21303
For a free e-version
text “ebook” to
587-317-6099

Apple Commits $2.5B Toward California
Housing Crisis - MHN 19.11.05 - "will
commit $2.5 billion towards efforts to
solve the severe lack of housing and
affordable housing in the Golden State.
Apple’s pledge follows similar
announcements made recently by fellow
big tech firms Facebook and Google." -
Microsoft kicked off the commitments in
January, when it announced it would
invest $500 million to affordable housing
in the Seattle area. Five months later,
Google doubled Microsoft’s pledge with a
$1 billion investment in Bay Area housing
and a plan to build 20,000 units. And just
two weeks ago, Facebook announced it
was committing $1 billion toward
affordable housing efforts in California. -
[Failure for markets and public policy to
meet housing needs]

2019 Rent Growth - MHN 19.11.18 -"multifamily rent growth is back in the black, increasing $1 to an
average of $1,476. Year-over-year rent growth remained at 3.2 percent and has been at least 3
percent for more than a year, according to a Yardi Matrix survey of 127 markets"

Class B & C Investors Circling Secondary,
Tertiary Markets - MHN 19.11.04 - "Fueled by
strong employment and a growing group of
renters by choice, investor exuberance for
multifamily properties is spilling over into
older properties as well as secondary and
tertiary markets. Buyer older properties and
renovating them, meanwhile, can offer better
returns."
“Groups that would have been looking for the
newest, shiniest Class A downtown asset
now have modified their strategy to allow for
Class B investments,” Pesant said.
“I was talking to an investor the other day
who bought an asset in Florence, S.C.,
because it was a 7 cap,” she said.
“Everything is a 5 to 5.5 cap in secondary
markets. They are going to tertiary markets to
get yield and going down the quality curve." -
[Not a new trend for SPC investors but here
is another viewpoint of the opposite. Lesson
learned is know what you are investing in a
specialize and operate well]

3Q19 UNITED STATES
MULTIFAMILY CAPITAL MARKETS
REPORT
Sales Volume
Sales volume in the third quarter totaled $46.0 billion, down 7.3% year over year, while 12-month sales volume increased 8.8% to $183.7
billion nationally. Non-major markets have been the recipient of 70.0% of total investment sales volume over the past year, with Sunbelt
markets such as Charlotte, Tampa and Raleigh-Durham all exceeding 30.0% annual volume growth.
Cap Rates
Yields compressed 9 basis points year over year to 5.34% nationally, while cap rates expanded 5 basis points in major markets and
compressed 12 basis points in non-major markets. Cap rates have remained steady despite a 32-basis-point quarter-over-quarter
decline in the 10-year treasury market to 1.68%, the lowest level since the third quarter of 2016.
Rent Growth
Annual effective rental growth increased to 3.2% nationally, up 60 basis points year over year. Las Vegas and Phoenix remain the top
markets for effective rental growth year over year at 8.0%. This marks the third consecutive quarter in which these two Southwest
markets have led the nation. Strong property level rental growth has also contributed to net operating income accelerating to 6.83%, up
255 basis points year over year.
Supply and Demand
Year to date, new supply has totaled 189,753 units, while demand has reached 295,738 units, outpacing new supply by 105,985 units.
Despite high levels of new supply nationally, 61.1% of new deliveries over the past 12 months have been delivered in the top 20 markets.
Charlotte and Dallas have experienced the strongest inventory growth on a percentage basis, whereas demand has been especially
strong in New York, with demand outpacing new supply by 10,329 units.
International Capital
Direct acquisitions by international capital sources totaled $17.1 billion over the past 12 months, representing a 44.1% increase year
over year. Canada remains the top buyer of U.S. multifamily, accounting for 65.1% of acquisitions by international capital sources, led by
Brookfield Asset Management. Additionally, international investors have continued to shift money out of major markets and into
non-major markets with higher growth potential.
Debt Markets
Mortgage debt outstanding for multifamily grew $24.4 billion to $1.5 trillion, a 1.7% quarter-over-quarter increase. The four major lenders
(GSEs, banks and thrifts, life insurance companies and CMBS) all increased their holdings quarter over quarter, as debt capital remains
resilient. FHFA's recent announcement allowing Fannie Mae and Freddie Mac to produce $200 billion over the next five quarters is

Jersey City Joins Push to Block Airbnb -
MHN 19.11.08 - "The new rules in Jersey
City bar renters from listing their
apartments on the site as well as owners
who don’t live on-site." - [Another reason
why I don't like STRs and prefer blue
collar rentals]

Multifamily Rents Rise as Vacancy
Tightens - MHN 19.11.08 - " Effective
rents for institutional properties grew by
3.3 percent year-over-year in the second
quarter, up 1.6 percent over the previous
quarter, as low unemployment rates and
ongoing job growth fueled healthy
absorption.
The vacancy rate declined by 20 basis
points year-over-year to 5.8 percent,
even as apartment stock continues to
expand by 2 percent a year, according to
a new report by the commercial real
estate finance firm. More than 4,400
buildings providing 797,000 units are
currently under construction" - [This is a
big of general data on the whole US
market which is not really useful but in
the big picture the demand is there]

China Trade deal update 19.11.11 -
Home loans started higher but were "saved" midweek when reports came out suggesting a delay of a "phase one"
trade deal signing.
Bonds and home loan rates like bad news, so a disruption or delay of the trade signing was the reason for rates to
improve off the worst levels midweek.
Word that both the U.S. and China would roll back tariffs as a deal gets put together was very good news which
pushed Stocks to all-time highs at the expense of Bonds and home loan rates.
Loan on same level they were at back on July 31st when the Fed cut rates for the first time in 10 years.

Co-working space

More than half of the world’s richest
investors see a big market drop in 2020,
says UBS survey - CNBC 19.11.12 -
"UBS surveyed more than 3,400 high net
worth investors with at least $1 million in
investable assets. Fifty-five percent of
respondents expect a significant drop in
the markets at some point in 2020. The
super rich have increased their cash
holding to 25% of their average assets,
the survey showed." - [You are not the
rich if your net worth is under 1M... I
found it interesting that they still had 75%
of their money in the game despite this
outlook. This also means not dead equity
too.]

https://arbor.com/blog/state-us-economy-multifamily-market-2020/?
utm_content=11.15.19_ChatterWeeklyRoundup_178&utm_medium
=email&utm_source=pardot&utm_campaign=alexchatter

Hillwood to Develop 1 MSF Amazon
Fulfillment Center in North Mississippi -
REBusiness Online 19.11.19 - "The facility
will house picking, packing and shipping
operations for larger customer orders and
create 500 new full-time jobs. According to
The Clarion-Ledger, the new facility will be
located within Hillwood’s Legacy Park, a
266-acre business park in DeSoto County.
The Class A industrial campus has proximity
to U.S. Highway 78 and Tennessee Highway
385; the BNSF and Norfolk Southern
intermodal terminals; Memphis International
Airport; FedEx Air and Ground hubs; and a
UPS sort hub." - [You need to start getting
creating and looking into tertiary markets]

CRE Industry Preps for New EB-5
Regulations - CPE 19.11.20 - "The new
minimums have been adjusted for years of
inflation. The minimum investment in assets
in a targeted employment area will increase
by 80 percent, from $500,000 to 900,000,
and the standard minimum investment will
rise by the same percentage, going from $1
million to $1.8 million."

https://simplepassivecashflow.com/spouse/
https://simplepassivecashflow.com/legal/
My Last rental! - https://simplepassivecashflow.com/al4/
Stop Being a Crazy Rich "Mom/Pop" Asian Investor w/ Elisa Zhang -
https://simplepassivecashflow.com/ezmoney/
Financial Freedom for Doctors - https://simplepassivecashflow.com/doctor/
Mortgage lending questions for 2020 w/ Graham Parham -
https://simplepassivecashflow.com/mortgage-lending-questions-for-2020-w-graham-parham/
eCourse is now live - SimplePassiveCashflow.com/ecourse
New investor portal with 3 free modules and past deal webinars

Plan for 2020.
Start to make key hires to help
group SPC.

https://simplepassivecashflow.com/spouse/
Tips to have this difficult conversations

$216M Real estate controlled,
3,000 units, $24M diverted from
Wall Street, 226 LIVE investors

Stop going to REI events and start
going to private entrepreneurial and
coaching groups.

Taking a look at asset management
systems for improvement.

Used a $100 gift card to nice
restaurant

https://simplepassivecashflow.com/legal/
Charging order protection
Fraudulent conveyance
Jurisdiction
Going off-shore
The Domestic Trust
Frivolous lawsuits
Other exotic structures
Umbrella insurance √

My coffee sucks I might consider an
espresso machine once I use all
144 remaining K-Cup pods.
I don't like to hear about other
peoples jobs because most time its
just complaining. If you don't like it
do something else.

Legal Notice and Disclaimer
This presentation does not constitute the
rendering of legal advice or services. The
information being presented is intended for
informational use only and is not a substitute
for legal advice. State, national and
international laws vary, as do individual
circumstances; so always consult a qualified
attorney on all legal matters.

Too Much Good Stuff!
For more events check out - SimplePassiveCashflow.com/events
Start learning about real estate investing -
SimplePassiveCashflow.com/start
Subscribe to the Free Podcast -
https://podcasts.apple.com/us/podcast/simple-passive-cashflow/i
d1118795347
_________________________
Top SimplePassiveCashflow Posts:
Simple Passive Cashflow’s Investor Friend Finder!!! – SimplePassiveCashflow.com/friends
Menu of Investing Options – SimplePassiveCashflow.com/menu
LaneHack – SimplePassiveCashflow.com/lanehack
Group Coaching Mastermind – SimplePassiveCashflow.com/journey
Coaching – SimplePassiveCashflow.com/coaching
Join our Private Investor Club – SimplePassiveCashflow.com/club
Join our Team – SimplePassiveCashflow.com/jointeam
Our Mission – SimplePassiveCashflow.com/mission
Partner Opportunity – SimplePassiveCashflow.com/partner
Products I support – SimplePassiveCashflow.com/products
About Lane Kawaoka – SimplePassiveCashflow.com/about-me
Quarterly Investor Updates – http://simplepassivecashflow.com/investorletter
SPC YouTube Channel – https://www.youtube.com/channel/UC3cIIsGKx3osVU5rt2P0HfQ
Real Estate Book Recommendations – SimplePassiveCashflow.com/books
Backwards Engineering Happiness – SimplePassiveCashflow.com/happy
Rental Property Analyser – SimplePassiveCashflow.com/analyser
Visit Lane in Hawaii – SimplePassiveCashflow.com/retreat
Start Here – http://simplepassivecashflow.com/start
Ultimate Simple Passive Cashflow Guide to…
1031 Exchanges – Simplepassivecashflow.com/1031guide
Newbies – SimplePassiveCashflow.com/noob
Infinite Banking – SimplePassiveCashflow.com/banking
Your Opportunity fund – SimplePassiveCashflow.com/ofund
Taxes – SimplePassiveCashflow.com/tax
Tradelines – Simplepassivecashflow.com/tradelines
Turnkey Rental Guide: simplepassivecashflow.com/turnkey
Syndication Guide – simplepassivecashflow.com/syndication
Crowdfunding – SimplePassiveCashflow.com/crowdfunding
Networking – SimplePassiveCashflow.com/people
Private Money Lending – SimplePassiveCashflow.com/lend
Investing in Coffee/Cocoa – SimplePassiveCashflow.com/coffee
Investing in Non-Preforming Notes – SimplePassiveCashflow.com/ahp
Rent don’t buy – SimplePassiveCashflow.com/home
Investor Fallacy: Return of Equity – SimplePassiveCashflow.com/roe
How to Calculate Investment Returns – SimplePassiveCashflow.com/returns
Why you should break up with your Financial Planner –
SimplePassiveCashflow.com/fp
Quitting your job – SimplePassiveCashflow.com/quit

Legal Notice and Disclaimer
This presentation does not constitute the rendering of legal advice or services. The information
being presented is intended for informational use only and is not a substitute for legal advice.
State, national and international laws vary, as do individual circumstances; so always consult a
qualified attorney on all legal matters.

December 2019 - Monthly Real Estate Investing News

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Similar to December 2019 - Monthly Real Estate Investing News

Similar to December 2019 - Monthly Real Estate Investing News (20)

More from Lane Kawaoka, PE

More from Lane Kawaoka, PE (13)

Recently uploaded

Recently uploaded (20)

December 2019 - Monthly Real Estate Investing News