Comparing Stock Investing to Real Estate

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 Comparing Stock Investing to Real Estate

Boom Time For Home Prices

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 Boom Time For Home Prices

Population Growth and Home Price Appreciation

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 Population Growth and Home Price Appreciation

Risks to Class B/C Multifamily Investing

In our recent post, “Fears of An Apartment Exodus” we shared our views around the significant shortage of affordable housing in this country and why it’s unlikely that “everyone” will leave their apartments in the city for a single-family home in the suburbs. Supply constraints make an apartment exodus impossible in practice – we can’t … Read more Risks to Class B/C Multifamily Investing

Cove Quick Hit: Collections

As enhanced unemployment benefits have now expired, we’ll continue to closely monitor delinquency trends across our portfolio. There are a lot of dramatic headlines out there, and not just from attention-seeking press outlets. For example, the most recent Household Pulse Survey from the US Census Bureau showed that just over 1/3 (34%) of respondents nationally … Read more Cove Quick Hit: Collections

Managing Apartments During COVID

We and our partners have remained intensely focused on operations and tenant engagement since early March. For now, our on-site property management teams have done a great job navigating the operational challenges of COVID. We’ve found ways to manage work requests, rent collections, and leasing engagement within the constraints of social distancing. According to the … Read more Managing Apartments During COVID

December 2019 – Looking Back, Looking Ahead

December has been a time of reflection here at Cove Investments. As the days grow short and the new year (decade) approaches we’ve been thinking about how we can better serve our investors and our broader community of investors, partners, and friends.   By conventional measures, our first year has been a rousing success. Cove … Read more December 2019 – Looking Back, Looking Ahead