Real Estate Opportunities post Covid

Mitigating risk and seizing opportunities in a volatile market

As we continue to monitor the rapidly changing landscape, Aloha is implementing prudent changes to protect our fund investors and borrowers. We feel these changes provide both groups with the best opportunity for success going forward. Most significantly, we paused lending for 45 days while we surveyed the new environment. As a result of the lending pause, the cash position of the fund increased, which decreases risk and volatility. We… 

Updates on Real Estate as the U.S. Begins to Re-Open post COVID-19

First and foremost, we’ve had a number of inquiries as to how Aloha is performing in this challenging environment. Regarding Aloha LTD Fund’s outstanding loans, we have not seen a meaningful increase in missed loan payments or defaulted loans since the pandemic began. In fact, we have collected 95% of the interest on our loans for both March and April; this figure is in line with pre-pandemic expectations. Thus far,… 

A Brief COVID-19 Update

Like so many of you, we have spent the last several days and weeks closely monitoring the impact COVID-19 is having on our communities, the markets, and the world. Our hearts and thoughts go out to the people who have been affected by this unprecedented event and we appreciate all those on the front line working to contain the Corona virus. We are carefully analyzing and working to mitigate the risks to… 

Homebuilder bullishness underscores the positive outlook for residential housing in 2020

With every new year, those of us in real estate and other businesses look into our crystal ball to try to assess what lies ahead. And as we assess the outlook for housing in 2020, we should note that one group is unusually bullish – homebuilders.  According to the December NAHB/Well Fargo Housing Market Index, homebuilder confidence was at its highest point since June of 1999. With a low supply of… 

Happy New Year, Aloha and Philanthropy updates

First, we hope everyone is having an enjoyable Holiday season thus far!  And we’d like to wish you and yours a Happy New Year in 2020!  Of course it’s a great time to reflect on the year that’s almost passed and to project and plan for our desired positive changes and outcomes for the one forthcoming. 2019 was another outstanding year for Aloha LTD Income Fund.  It produced a positive… 

The Fix and Flip Business is Increasingly Competitive; but Enterprising Flippers are Still Making Good Profits

It’s getting increasingly difficult to turn a profit in the house flipping business these days. At least that’s the story making the rounds in the press recently. Some of the reasons given: home prices are high, there are fewer distressed or foreclosed properties available to buy inexpensively, and the competition among investors is substantial. There is also the suggestion that the increasingly competitive fix and flip-it business is a sign… 

Mortgage-backed securities stage a comeback, offering attractive yields to investors

Over a decade has passed since the end of the subprime mortgage crisis, and since then the stigma associated with “sub-prime,” “unconventional” and “non-agency” mortgage-backed securities (MBS) has clearly shifted. These investment vehicles are finally making a comeback. In 2018, the number of unconventional mortgages increased to the highest level since the mortgage meltdown in 2008. Unconventional mortgages include subprime loans, which are made to borrowers with blemished credit; loans… 

U.S. Mortgage Debt surpasses level hit in 2008 during the financial crisis. But homeowners’ debt picture looks much better this time around

In the third quarter of 2008, U.S. mortgage debt hit a record $9.294 trillion. That extreme marked the end of the housing boom and the beginning of the Great Recession. So, when we hear that U.S mortgage debt has recently surpassed its 2008 peak, it might raise concerns. But this time around, the homeowners’ debt picture is much better. Mortgage balances have indeed surpassed the peak set 11 years ago… 

Foreign buying of US real estate slows over the intermediate term

This month, given the recent, constant barrage of international news in the press, we decided to relate the issue of US real estate markets to foreign interests and sales stats. As you’ll see-these foreign investors have been pulling back substantially in their buying of houses here at home over the past couple of years–and to a surprising degree. Please note that this letter is expressly not intended to be a… 

Drop in mortgage rates continues to propel the housing market

Just last December, many economists were sounding loud and consistent alarm bells that interest rates were poised to rise (potentially rapidly) in 2019, and that the peak in U.S. home prices had been hit. As of summer 2019, it looks like the experts were wrong on both counts. Since touching 5% in late October, the 30-year mortgage rate has dropped to 3.84%, its lowest level since September 13, 2017. Meanwhile,…