Month: February 2021

Investing in private equity real estate and publicly traded stocks are similar. How do I know? I’ve invested in more than 2,000 apartment units following a 25+ year professional career in institutional equities (stocks).   It turns out, the valuation framework, tools, and basic skills required to analyze businesses apply to stocks and real estate. Experience … Read more

In the early days of the pandemic, pundits broadly agreed that everybody would flee the cities in favor of suburban single-family homes. Preferences aside, that never seemed to be a realistic outcome. In August, I wrote a blog post, Risks to Class B/C Multifamily Investing, on this topic, arguing as follows: Supply constraints make an apartment exodus impossible … Read more

Freddie Mac recently published an excellent report called US Population Growth: Where is Housing Demand Strongest? Similar reports underscore the growth in sunbelt states and highlight the MSAs that are growing fastest. The report highlights that US population growth is slowing. Therefore, real estate investors must focus more carefully on the composition of growth drivers (net migration … Read more

What’s the right allocation to private equity real estate? The honest answer, as ever, is that it depends. It mostly depends on the individual’s risk tolerance, objectives, existing portfolio, and other tax, liquidity, and estate planning considerations. It also depends on what you mean by real estate, which can take many forms and carry a … Read more