I have moved a lot of my investments to value and raw materials based stocks. I am looking at real estate investments but a conversation with a banker friend has slowed me down on that one.
Real estate is set to tank worse than 2008 with an enormous backlog of delayed foreclosures. Right now they can’t foreclose or evict people but when Congress removes that restriction it will be a mess. A lot of landlords are suffering too from unpaid rents they will never collect. I was told about a large apartment complex that sold in the last month at a 40% discount because the family who owned it could not deal with all the uncollected rents and just wanted out.
The other side of that equation is firms like Blackstone, etc are literally sitting on billions of dollars waiting for that to happen and swoop up and buy them. They will not be available long. And that Multi-family seller did not use a broker or a good broker at least or he’d have received what it was worth in 2019. Even hotels with revenue down 80-90% from 2019 levels are selling at only a 15-20% discount to pre-pandemic pricing. The market is so on fire for multi-family right now they are looking at buying extended stay hotels with kitchens to convert to multi-family all over the country at massive premiums.