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

Institutions Adding to Real Estate

Looking at the macro environment, we’re struck by how much has changed since last month’s comments.  In early October it seemed a foregone conclusion that we’d soon face our first recession since the Global Financial Crisis (GFC). Capital markets couldn’t have been more clear in their signals: bond yields were collapsing, the yield curve had inverted, credit spreads … Read more Institutions Adding to Real Estate

Global Influences on Local Investments

Many times, the outcome of an investment, both positive and negative, are outside of our control. While they cannot be influenced, they are dangerous to ignore. In this post, I’ll explain why the low yields of global bonds may significantly affect returns of your US real estate investments. Location, Location, Location… And Perspective Let’s take … Read more Global Influences on Local Investments

Key Drivers for Apartment Investments

We’ve already discussed the many benefits of investing in apartments (see 5 Reasons Apartments may be the IDEAL Investment). But what are the key value drivers that determine whether a deal will be successful? Well, it turns out that having 25+ years of experience in analyzing stocks help quite a bit when analyzing apartment investments. … Read more Key Drivers for Apartment Investments

The Importance of Forced Appreciation

Houston skyline

Hats off to the guys from Disrupt Equity and Wolfe Investments for organizing a tremendous maiden event. Roughly 250 people attended the first Multifamily Investor Network conference with the overwhelming consensus that it was time well spent. Each session focused on education, insights, targeted networking, and as promised, there wasn’t a single sales pitch. Following … Read more The Importance of Forced Appreciation