5 at 5: Your Daily Digest for Real Estate Investing, 3/17/21

Fannie Mae sees economy grow, HUD sees housing starts slow, a South Beach bitcoin buy could be a first, real estate crowdfunding investing, and three REITs ripe for the picking.

In Today’s News

Fannie Mae Sees Accelerated Economic Growth Through Spring

Fannie Mae (OTCQB: FNMA) says in its monthly economic forecast out today that it expects an acceleration in real gross domestic product (GDP) growth and employment in the coming months as vaccinations progress further, warm weather arrives, and the recently passed stimulus bill takes effect.

The Millionacres takeaway: The government-backed housing financer says it expects home sales to be only minimally affected by rates as they are, but a further jump remains a risk. But generally, optimism this month is higher than last month as this year of — hopefully — pandemic recovery moves forward.

Housing Production Weakens in February

Rising material costs and interest rates are behind the 10.3% year-over-drop in housing starts in February, the National Association of Home Builders (NAHB) says of the monthly report out today from the U.S. Department of Housing and Urban Development (HUD) and the Census Bureau.

The Millionacres takeaway: Those factors, plus shortages in new appliances, may well further hold back new home builds this year, the NAHB says. That can only add to pricing and affordability pressures, too, it would seem.

Will This Miami Nightclub Be America’s First CRE Buy in Bitcoin?

A Miami Beach nightclub called Treehouse at 323 23rd St. in South Beach is for sale, and the seller will accept bitcoin as payment. If a bitcoin buyer emerges, it could be the first U.S. commercial real estate transaction using cryptocurrency, Bisnow South Florida reports this week.

The Millionacres takeaway: There already have been residential sales using cryptocurrency in this country, but this transaction could break new ground and make U.S. commercial property even more attractive to foreign investors, this piece posits.

Today on Millionacres

How Crowdfunding Has Changed the Game for Real Estate Investing

Think investing in real estate is only for the ultra-rich? Think again. The rise of crowdsourced real estate financing allows more accredited investors to become real estate investors than ever before.

The Millionacres takeaway: Our Amanda Sapio provides a primer on real estate crowdfunding here, including the differences between debt and equity investing, and how while democratizing the process, this can be a pretty illiquid way to tie up funds.

3 Top REITs to Buy With Dividends Above 5%

Some real estate investment trusts (REITs) pay higher dividends than others. Three that currently stand out for their attractive yields are Medical Properties Trust (NYSE: MPW), SL Green Realty (NYSE: SLG), and MGM Growth Properties (NYSE: MGP).

The Millionacres takeaway: Our Matthew DiLallo lays out why these three issues are particularly attractive, since they combine strong payouts with promising business models going forward.

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