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5 at 5: Your Daily Digest for Real Estate Investing, 5/7/21

Millionacres logo Millionacres 5/7/2021 Marc Rapport
a clock on a table: 5 at 5: Your Daily Digest for Real Estate Investing, 5/7/21 © Provided by Millionacres 5 at 5: Your Daily Digest for Real Estate Investing, 5/7/21

Jobs report reaction, Fannie Mae reports homebuying sentiment flop, REIT stocks reach pre-pandemic levels, a focus on Four Corners Property Trust, and pitfalls of homebuyer "love letters."

In Today's News

Biden: Weak Jobs Report Shows the Need for Massive Jobs and Families Bill

President Joe Biden said today that April's lower-than-expected job growth reveals that the U.S. economy is still struggling to recover from the pandemic, CNBC reports, and that his massive infrastructure and family support bills are needed now more than ever.

The Millionacres takeaway: Biden rejected the idea that federal unemployment benefits are removing incentives for people to return to the labor force. Others disagree: The governors of Montana and South Carolina are moving to end federal pandemic unemployment benefits in their states.

Fannie Mae Homebuyer Sentiment Drives Record Dip

Fannie Mae (OTC: FNMA) reported today that consumer sentiment toward buying homes has reached the lowest level in the 10-year history of its Home Purchase Sentiment Index. Positive seller sentiment offset some of that drop to give the overall index a more modest drop for the month.

The Millionacres takeaway: Fannie Mae analysts found particularly negative homebuying sentiment in the $50,000-to-$100,000 household income range, reflecting the affordability issues affecting that large segment of the U.S. population.

Publicly Traded REIT Stocks Have Returned to Pre-Pandemic Levels

A little more than 14 months after publicly traded real estate investment trusts (REITs) -- like nearly every other part of the global economy — took a big hit as the full weight of the pandemic sunk in, the sector's share prices have now fully recovered and are slightly above pre-pandemic levels, reports.

The Millionacres takeaway: That's according to the FTSE Nareit All Equity REIT Index for April. Ramped-up merger activity is another sign of the sector's revival, and, encouragingly for investors in these: Shopping centers and regional malls have seriously rallied.

Today on Millionacres

Is Four Corners Property Trust a Buy?

Four Corners Property Trust (NYSE: FCPT) is a retail REIT that, unlike some of its competitors, never reduced, much less suspended, its dividends through the worst of the pandemic.

The Millionacres takeaway: A tenant base heavy on the major brand names in the fast food and casual dining businesses buoyed this restaurant REIT through the choppiest waters of the 15 months since the pandemic settled in -- and there's reason to believe the solid performance will continue.

What RE Investors Need to Know About Buyer 'Love Letters'

In the current red-hot seller's market, bidding wars are the norm. To get their offer noticed, some buyers resort to writing letters to the owners, waxing poetic about the property being their dream home. There are some potential legal pitfalls for the recipient, however.

The Millionacres takeaway: While buyers can't be prevented from sending letters, property investors can control how they respond to receiving them. Here are some suggestions, courtesy of our Barbara Zito.

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