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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2018/04/lloyd-jones-capital-real-estate-investments-partnerships-560x320.jpg320560Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2018-04-18 19:56:032018-05-18 16:18:12Choosing a Real Estate Investment Partner? Six Questions to Ask
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.
https://www.lloydjonesllc.com/wp-content/uploads/2018/03/inflation-real-estate-514x320.jpg320514Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2018-03-30 16:43:112018-08-05 16:16:16How to Make Inflation Your Friend
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.
“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.
https://www.lloydjonesllc.com/wp-content/uploads/2017/07/Blog-367x320-1.jpg320367Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2017-07-11 17:34:272018-05-18 14:55:30So, What's An Investor To Do?
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.
https://www.lloydjonesllc.com/wp-content/uploads/2017/01/regulation-large-560x320-1.jpg320560Samantha Savoryhttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgSamantha Savory2017-01-31 22:55:482018-05-18 14:59:24Affordable Housing – It’s time to shake it up.
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.
https://www.lloydjonesllc.com/wp-content/uploads/2016/08/lloyd-jones-capital-investment-firm-miami-multifamily-real-estate-skip-flip-560x320-1.jpg320560Samantha Savoryhttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgSamantha Savory2016-08-24 18:50:072018-05-18 15:00:49Skip the Flip in Multifamily Investment
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2016/06/stash-cash-under-mattress-1.jpeg273485Samantha Savoryhttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgSamantha Savory2016-06-24 21:24:592018-05-18 15:05:10Is It Time To Keep Your Money Under The Mattress?
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2016/04/Los_Angeles_Region-560x320-1.jpg320560Samantha Savoryhttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgSamantha Savory2016-04-14 17:33:352018-05-18 15:12:52Six Take-Aways From The “Big Boys” That Will Protect Your Investment Portfolio
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2016/04/lloyd-jones-capital-real-estate-560x320-1.jpg320560Samantha Savoryhttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgSamantha Savory2016-04-06 15:14:062018-05-18 15:15:11A Recap of Lloyd Jones Capital's CEO Panel Discussion
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 […]
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2016/01/8085bda7-a979-4499-9c42-bd514f970eb4-1.jpg150150Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2016-01-12 15:36:202018-05-18 15:19:07What Does 2015 Tell Us About 2016?
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 […]
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2015/07/unnamed-560x320-1.jpg320560Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2015-07-30 21:34:522018-05-18 15:24:33Millennials: Here They Come... And They Will Need Housing
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svg00Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2015-07-10 12:43:072018-05-18 15:44:21This is Not the Time to Be Aggressive With Real Estate Investments
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 […]
https://www.lloydjonesllc.com/wp-content/uploads/2015/04/carshow-dallas-texas-319836-l-500x320-1.jpg320500Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2015-04-09 15:10:202018-05-18 15:27:34One Easy Way to Preserve Your Wealth - And Enjoy It, Too
https://www.lloydjonesllc.com/wp-content/uploads/2014/09/granite-1.jpg320560Kai Crousehttps://www.lloydjonesllc.com/wp-content/uploads/2018/05/LloydJonesMultifamilyInvestment_Fullcolor_Logo.svgKai Crouse2014-09-26 14:05:592018-05-18 15:34:45Play the Real Estate Game the Right Way