2023 investment focus

[Levi Blum]

Five real estate investment markets to keep an eye on for 2023 according to expert and Market & Trends

1. Recovery of the Short-Term Rental Industry

2. Stronger Demand in Secondary and Tertiary Markets

3. Growing Interest in Long-Term Airbnb Rentals

4. Rise in Fractional Rental Property Investing

5. Technological Advancements

I would love to hear from investors if they agree with it.

[Taylor L.]

Was the STR industry in a lull? All of the STR investors I speak with have had great years. Granted I'm not digging into their financials.

I believe the fractional ownership (i.e. cryptoization) of real estate is massively overblown and will face enormous regulatory hurdles. The goal seems to be to take a security and skirt securities laws by issuing a crypto token representing ownership - but using what exemption to registration? 

I see rising rates as the biggest individual factor that will impact the real estate market next year. We've had cheap money for quite a long time now, will the Fed continue to hike, or will they capitulate?

[Adam Bartling]

Price is going to push the more rural market into growth.  I know 3 developers that are looking for the next 10 year plan now.

Fractional ownership? Syndications?  Hell ya, I wish I had internet when I was in my 20s so I could learn all this sooner.  This area will grow and development will keep getting built.  I would be interested in jumping in on a portfolio of properties

[Levi Blum]

Quote from @Taylor L.:

Was the STR industry in a lull? All of the STR investors I speak with have had great years. Granted I'm not digging into their financials.

I believe the fractional ownership (i.e. cryptoization) of real estate is massively overblown and will face enormous regulatory hurdles. The goal seems to be to take a security and skirt securities laws by issuing a crypto token representing ownership - but using what exemption to registration? 

I see rising rates as the biggest individual factor that will impact the real estate market next year. We've had cheap money for quite a long time now, will the Fed continue to hike, or will they capitulate?

STR, according to experts, they claim that since Covid where flying was restricted and no one was going on vacation, it has put a dent in the STR market, but now that even people from over seas can fly to the US, it should boost in STR market even more.

I would mot recommend fractional ownership, but I would recommend to do it for down payment, meaning if you borrow $20k for the down payment and pay back $28k 6 months later for example, that would  help new investor to get access to money to purchase, otherwise I would recommend to go solo, unless you need someone that has more experience.

Rates are going up, but you can still find a deal out there, it might take you longer to find it, and you have to do the math properly to make sure that you can not only pay for the mortgage, tax and insurance, but also make a little profit at the end of the day. 

[Levi Blum]

Quote from @Adam Bartling:

Price is going to push the more rural market into growth.  I know 3 developers that are looking for the next 10 year plan now.

Fractional ownership? Syndications?  Hell ya, I wish I had internet when I was in my 20s so I could learn all this sooner.  This area will grow and development will keep getting built.  I would be interested in jumping in on a portfolio of properties

 @Adam Bartling how easy it is to find a lender that would fund a project in a rural area?

I represent 6 lenders and I do not charge any fees, and I could not find a lender that would work with rural areas, and I do get request for it.

[Eliott Elias]

Technological improvement is going to be interesting. I already hate the opendoor and zillow concept 

[Adam Bartling]

@Levi Blum You got to look rural to find rural lenders. We broker on the NMLS side do you have your lic?  That maybe why????

[Levi Blum]

Adam,

I am a lender and for commercial real estate for the past 36 months, and you do not need to have a license.

[AJ Wong]

#3- I read somewhere recently that a considerable percentage (15-20%+) of AirBnB stays are 30 day or longer... Great insight. Thanks for posting. 

[Obed Calixte]

With median prices of homes continuing to climb, I see fractional ownership as a burgeoning market. Akin to what fractional shares have done for increasing interest, liquidity, opportunity and access to the stock market for many, I see with fractional property ownership. Arrived is a leader in the space (in my opinion) and there are likely to be more.

I have fractional ownership as part of my 5 year business plan. 

[Eliott Elias]

Buying as cheap as humanly possible 

[Priti Donnelly]

I agree with all 5 points on the original post as well as affordable, high yield, and openness to foreign markets. With all of this in mind, commercial asset class will generate higher yield than the residential sector. So that would be the purchase (fractional or full) of hotel suites.  I am not familiar with all international sectors, but I am familiar with Thailand.

[Jay Thomas]

Short-term rentals are bouncing back as travel restrictions ease, making downtown properties attractive. Secondary and tertiary markets like The Heights, EaDo, and Montrose offer investment potential. Long-term Airbnb rentals near the Texas Medical Center are gaining popularity. Fractional property investing is on the rise, especially in upscale areas like River Oaks. Staying tech-savvy is crucial for property management and energy efficiency. Remember, consult local experts for Houston's ever-changing real estate landscape. Ask if you need specific Houston real estate advice.