Real estate is a great option for investment. Investment destination concept, Investmets newspaper with magnifying glass and… [+] Marker. 3D illustrationGetty Selected real estate could be an income investment option for 2024. As of this writing, seven real estate investment trusts (REITs) are paying dividends ranging from 8.7% up to 15.4%. These REITs and others like them are literally designed to pay dividends, and that's how the rules were written in 1960 when Congress enacted these real estate investments into law. REITs avoid taxes at the corporate level, but instead must pay out at least 90% of their taxable income…
Author: Private Lending Agent
Real estate is often a lucrative investment that can provide passive income and long-term capital appreciation, and it can also be a smart way to diversify your portfolio outside of the traditional portfolios of stocks, bonds, and mutual funds.While a home may be your first foray into real estate investing, there are plenty of other ways to get into the market, from rental properties and home flips to real estate investment trusts (REITs) and online real estate platforms. Here are six investments to consider to diversify your portfolio with real estate. Buy a rental propertyBuying rental properties and renting them…
Flipping a home means buying a house for a profit. It's a profitable real estate investment strategy, but home improvements to increase the property's value can be costly. Plus, traditional financing options aren't always available. In this article, we'll discuss the major costs associated with flipping a home, loan options for flipping a home, and how to get approved for a loan. We'll then explore tips to help new investors finance their home flip projects. How much does it cost to resell a house? If you’re new to the real estate business and are considering flipping a home, the first…
Downward angle icon Downward angle icon. Commercial real estate is under pressure from rising interest rates and falling property valuations. Kena Betancur/VIEWpress Commercial real estate could suffer its biggest crash since the global financial crisis. That's bad news for banks, who could suffer an additional $160 billion in losses. That's according to a recent NBER working paper that explored the impact of the Fed's interest rate hikes. The commercial real estate sector is at risk of its biggest crash since 2008, which could cost U.S. banks up to $160 billion in losses. That's according to a new working paper by…
Editor's note: We earn commission from Forbes Advisor partner links. Commissions do not influence our editors' opinions or ratings. Despite obstacles like inflation, high interest rates, and tougher lending standards, entrepreneurs are still securing capital and launching businesses: 2.6 million new businesses were registered in the U.S. in the first half of 2023, up slightly from the same period in 2022. When a venture needs money to grow, borrowing is one way to raise capital. But this method can come with financial drawbacks, including large debt payments and interest losses. To find out how entrepreneurs fund their businesses and how…
When it comes to real estate investment trusts (REITs), standard metrics like earnings per share (EPS) and price-to-earnings ratios (P/E) may not give you the most accurate information you need about performance and value. Instead, experts often refer to funds from operations (FFO) and adjusted funds from operations (AFFO) as key metrics. Therefore, understanding FFO and AFFO is essential to accurately assessing a REIT's financial health, growth prospects, and overall investability. FFO and AFFO are tailored to the needs of REITs. Unlike traditional corporations, REITs generate revenue primarily through property rentals and are required to distribute most of their revenue…
A sudden turnaround in economic indicators “Mortgage rates have been trending lower for a third consecutive week as new data indicates inflationary pressures are easing. The combination of a continuing strong economy, declining inflation and lower mortgage rates should encourage more homebuyers into the market.” Freddie Mac (FHLMC) Stock and bond markets, which have a major influence on household wealth, consumer confidence, and interest rates, were generally characterized by deep pessimism in October, but financial markets suddenly shifted to rapturous optimism in November as major changes in economic indicators such as inflation and the Federal Reserve continued to pause hikes…
Dive Overview: U.S. financial regulators have flagged the commercial real estate market as a major risk to financial stability in 2024, citing rising vacancy rates, falling office property values, high interest rates and a possible economic slowdown. “Commercial real estate is the largest lending category for nearly half of U.S. banks, and more than a quarter of U.S. banks have large commercial real estate loan portfolios relative to their capital holdings,” the Financial Stability Oversight Council said in its annual report. “The office sector faces the most severe challenges as demand for office space remains weak, particularly in the largest…
Artificial intelligence and large-scale language models have impacted many industries over the past year, including commercial real estate. While concerns remain over data privacy and AI illusions, this new technology has shown incredible potential to streamline transactions, if used with proper oversight. As real estate professionals and their lawyers navigate the evolving AI landscape, collaboration, experimentation, and creativity will be crucial to capitalize on all the benefits. In this episode, Tamarron Houston, partner in Seyfarth's real estate practice, and Byun Kim, senior director of technology innovation at Seyfarth, join Eric Greenberg and James O'Brien to share stories from the front…
A new paper by four economists at the National Bureau of Economic Research argues that 14% of the $2.7 trillion commercial real estate loan market and 44% of office loans currently have outstanding loan balances that exceed property values and are at risk of immediate default. See also: Silverstein acquires Brooklyn Tower stake from Michael Stern for $672 million The paper estimates that a 10% default rate on all CRE loans could cost banks up to $80 billion and lead to dozens of bank failures, but on the bright side, the authors argue that lower interest rates engineered by the…