5 at 5: Your Daily Digest for Real Estate Investing, 12/16/2020

© Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 12/16/2020

Fed leaves rates unchanged, A-Rod goes hotel shopping, Realtor.com Avails itself, convention center investments, and three REITs that could rock.

In Today’s News

Fed Leaves Rates Unchanged and Commits to Ongoing Bond Purchases

The New York Times [subscription required] reports that the central bank left rates near zero at its December meeting and tied bond-buying to the Fed’s employment and price goals.

Why it matters: Historically low mortgage rates probably won’t be rising much anytime soon, helping to keep the purchase and refinancing market hot, inventory low, and bargains scarce.

A-Rod Swings for the Fences With New Hotel Real Estate Fund

Baseball legend Alex Rodriguez is teaming with a Miami private equity firm to invest more than a half-billion dollars in buying or developing hotels at a time when the industry has been ravaged by the pandemic.

Why it matters: The Wall Street Journal [subscription required] points out that A-Rod has long been a well-heeled, well-connected real estate investor and quotes his observation that while the hospitality industry is down now, “wealth is rarely created overnight.”

Realtor.com Acquires Landlord Platform Avail

ChicagoInno reports that Avail, which aims to help landlords more easily screen tenants, collect rent, and manage maintenance requests, has been acquired by Move Inc., the parent company of Realtor.com. Avail will remain a standalone platform but will enable Realtor.com to further expand in the rental space.

Why it matters: Avail says it has a relationship with more than 600,000 landlords and tenants. That should allow Move, itself a subsidiary of the Murdochs’ News Corporation (NASDAQ: NWSA), to avail itself of new opportunities to serve the residential real estate industry more deeply through synergies the new acquisition creates with the listing, marketing, and editorial offerings of Realtor.com.

Today on Millionacres

Convention Centers Are Expanding in the Wake of the Pandemic

In today’s news of the counterintuitive, Millionacres’ Maurie Backman explains why some cities are investing big bucks to strike while the iron’s not hot.

Why it matters: Confident city leaders in Indianapolis, for instance, are fixing to sink $550 million into a convention center there, aiming to take advantage of an expected bounce back in a trade that was shut down by the pandemic but may be even more popular in its downsized office wake. That would be good news for all those hotels and restaurants around those centers, too.

3 Best REITs to Buy Now

As 2020 winds down, it’s a good time to consider selling some winners and losers and repositioning your portfolio for the year and years ahead. Because we’re here to help, we present three real estate investment trusts (REITs) that could end up as best buys for the final month of a year that shall long live in infamy.

Why it matters: These issues share little in common other than being a REIT. One is a yield play, the other is the dominant presence in a rapidly emerging market, and the third is a contrarian pick in a beaten-down sector. Perhaps the variety itself can help an investor consider strategy.

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