Blog

Experienced. Insightful. Smart.

Chris Finlay shares his perspectives on topics pertaining to multifamily investment, senior housing, and related trends.

3 ways to add value in multifamily real estate

By executing a value-add strategy, many investors have been able to increase returns on their multifamily investments. Value-add investments generally target assets that have existing cash flow, but also offer the upside potential of increasing that cash flow through repositioning and implementing improvements to the property. As a result, the property can command higher rents, […]

The changing landscape of urbanization

U.S. cities such as New York, Chicago, and Los Angeles have long been acclaimed as the cities that support the most opportunity and excitement for young professionals. Today 2.6% of the U.S. population lives in NYC, 1.2% in LA, 0.8% in Chicago. Although these numbers demonstrate how large the cities are, surprisingly each city has […]

Thoughts on the looming recession

Since the Fed announced its rate cut on July 31st, talks of recession have consumed the markets. With the pending Fed meeting on September 17th, it is largely expected that a consecutive rate cut will follow. A continuation of rate cuts would indicate that the Fed believes the US economy is contracting, and thus we […]

The 4 key areas that are shaking up the senior housing industry

10,000 baby boomers are retiring daily. Similar to the previous generation, baby boomers will be downsizing and seeking a new style of living, but their preferences will be extraordinarily different than that of their predecessors. 4 key areas will shape the way in which baby boomers will retire: 1. Technology: contrary to the generations before, […]

The shift in American status symbols

Throughout recent history, a mark of American status was the spacious home with the plush yard and picket fence. Young couples and growing families strove for this style of living to exemplify their status and enjoy what may be perceived as the American dream.Today, the home with the picket fence is no longer a goal […]

We are living in a rental economy

A few weeks ago the WSJ reported that “U.S. homeownership rate fell for a second straight quarter, as high prices and limited starter-home inventory are steering more households toward renting.”  This coupled with the fact that home prices rose over the last 2 decades while wages have remained stagnant (see chart below) confirms that we […]

How are institutional investors reacting to the rate cut?

Less than two weeks ago, the U.S. Federal Reserve announced its first rate cut since 2008. This decision surprised few given the uncertainty in the economy and global trade tensions. What did perhaps surprise many was the effect that the Fed’s decision had on the bond markets. Since the Fed’s announcement on July 31, the […]

What does Florida’s booming population growth mean for investing in Florida real estate?

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The sunshine state’s population is soaring as more and more Americans are migrating south. It may be the beautiful weather and landscape, the favorable taxes, or the growing job market, but this appears to be a trend that is here to stay. According to the Demographic Estimating Conference, Florida’s population will surpass 22 million residents […]

Why is real estate the #1 long-term investment for Americans?

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It’s no secret that real estate has been, is, and will continue to be a popular choice of investment. As individuals take a more holistic approach to their portfolio planning, real estate investments are receiving a bigger piece of the pie to add diversification and cash flow. That said, it still came as a surprise […]

Disruption in Senior Housing

The senior housing industry is in the midst of a big disruption.  Occupancy in assisted living hit a record low in the first quarter of 2018 – and continues to fall. There could be numerous reasons for this, including a bad flu season, but I think there’s something bigger going on. At a recent conference […]

Choosing a Real Estate Investment Partner? Six Questions to Ask

Before you entrust your funds to a real estate investment partner, ask some questions. First: Is your investment partner an Allocator or an Operator? There is a big difference.

How to Make Inflation Your Friend

Central banks like the Federal Reserve battle inflation – the general rise in prices—by boosting interest rates. In a benign environment, the rate of inflation is low, but as the economy heats up, inflation increases and robs the local currency of some of its buying power. By lifting interest rates in small increments, the Fed moderates the economy by increasing the cost of capital, that is, how much interest you have to pay to finance a project with borrowed money. Some potential projects will not go forward because they can’t generate the required rate of return necessary for investment due to the higher cost of capital. After all, the more of the project’s revenues that must be spent on interest and higher costs leaves less to compensate investors for committing their money to the investment.

How Does Stock Market Volatility Affect Multifamily Real Estate Investment?

The short answer is that stock market volatility increases demand for multifamily real estate investment, because real estate is much less volatile than stocks. For those who don’t want to invest all their money in the roller coaster stock market, real estate is, over the long run, a relatively tranquil alternative. Let’s dig deeper into the concept of volatility to explore the differences between the stock and real estate asset classes.

So, What’s An Investor To Do?

“The golden era [of stocks and bonds] has now ended,” says a McKinsey & Company report issued last year. The report suggests that returns on equities and fixed-income investments could see significant decreases – up to 400 or 500 basis points over the next twenty years.   According to the report, this will affect everybody, from pension funds that will face larger funding gaps; asset managers who will see lower fees; and insurers whose earnings depend on investment income.  And on a personal level, the new generation of retirees will retire later and with less income. Investors are seeking alternatives.

Affordable Housing – It’s time to shake it up.

Once upon a time, not so long ago, the American dream was to own a modest home in which to raise a family. This was more than a dream; it was an assumption, an expectation. Even the lowest-income workers aimed for and usually achieved, this dream. Not anymore. There is a tremendous last of affordable housing. Millions of our working families cannot even afford a rental apartment.

Skip the Flip in Multifamily Investment

It’s time to go long.

Historically, multifamily investment has been about long-term, cash-flow returns. However, in recent years, as the industry caught the eye of private equity, the emphasis turned to a property’s IRR or Internal Rate of Return.

Is It Time To Keep Your Money Under The Mattress?

Wait…There’s a better solution. Interest rates are plunging around the world; some are even closing below zero. And with negative and minimal inflation, the real interest rates are also pushing 0%. A June 9th Financial Times article on negative rates stated “Lenders in Europe and Japan are rebelling against their central banks’ negative interest rate policies with […]

Six Take-Aways From The “Big Boys” That Will Protect Your Investment Portfolio

The West Coast is different. It’s entrepreneurial; it’s leading edge, and it’s full of big ideas. So I headed west to LA to pick the brains of the big guys – some of the smartest in the real estate investment industry. I visited three large real estate funds and two very large family offices. Here’s […]

A Recap of Lloyd Jones Capital’s CEO Panel Discussion

The Lloyd Jones Capital team had a great time networking with other investment firms and more importantly, investors from around the world, at Opal Group’s 2016 Real Estate Investors Summit. Our firm had a booth where we connected with investors and shared our strategies in regards to real estate investing, previous deals and the types […]

Thank You, Harvard. New Study Confirms Multifamily Rental Growth

Thank you, Harvard. Once again, Harvard’s Joint Center for Housing Studies has published a brilliant paper on the status of rental housing. This study supports what we have been saying for the past couple of years– but says it much better than I can. I thought I would share some of the findings relevant to the multifamily investment […]

What Does 2015 Tell Us About 2016?

In reviewing 2015, I am reminded of the issues that dominated multifamily investment discussion. Let’s start with the funds. Blackstone Group LP, the world’s biggest alternative-asset manager, has collected $15.8 billion for its global real estate fund. As of June, 2015, it was overseeing $93 billion in real estate assets. Goldman Sachs is oversubscribed for […]

Does the Stock Market Scare You?

Last week’s stock market roller coaster ride serves as a good reminder of why it is so important to maintain a diversified investment portfolio. What impact did it have on investment real estate? Absolutely none. This is why income-producing multifamily real estate makes sense for a portion of your investment portfolio. Real estate does not fluctuate with […]

Millennials: Here They Come… And They Will Need Housing

A recent Miami Herald article, written by Ricardo Mor, pointed out that there are 83.1 million Millennials and a whopping 30 percent of them live at home with their families. This is an incredible statistic, especially for investors considering investing in multifamily real estate. These 18-to-34-year-olds are historically our apartment dwellers, taking their first steps toward […]

This is Not the Time to Be Aggressive With Real Estate Investments

Lloyd Jones Capital recently bid on a small $6 million apartment community in a tertiary market. The property was bank-owned and obviously distressed. It needed extensive renovation. Furthermore, its occupancy had been a very low 85% over the past twelve months, despite having third-party, professional management in place. This was, indeed a troubled property. Guess […]

One Easy Way to Preserve Your Wealth – And Enjoy It, Too

If you are reading this blog, you are most likely interested in accruing wealth through savvy investment strategies. There are lots of places to put your money; investing is not really the issue. The issue is: what investment options are best for preserving your wealth? One answer is real estate. It is said that 90% of […]

Play the Real Estate Game the Right Way

A recent article in the Wall Street Journal highlighted the exact opportunity that Lloyd Jones Capital is offering: the ability to invest directly in multifamily housing.

The Resurgence of Renting

Recent research by Joint Center for Housing Studies shows that renting is seeing a resurgence as the barriers to home ownership increase. Find out why.