COVID19 Causing Significant Stress in Commercial Real Estate. Here is How Investors can Diversify…

Most investors tend to picture ‘real estate investing’ in one big category. At Aloha Capital we like to remind investors that real estate comes in many shapes and sizes. Why do we do that? Well, because the varied components that make up real estate investing rarely all move in the same direction at the same time. Some sectors are up, while other sectors are down. It is vitally important to… 

Three Market Trends Make a Strong Case for Residential Real Estate Lending

In early October, Fannie Mae reported their Home Purchase Sentiment Index (HPIS) rose 3.5 points in September, continuing a rapid rebound of consumer confidence in the housing market since the lows brought about by the COVID-19 pandemic. (Fannie Mae: Rapid rebound of consumer housing sentiment continues)”. This increase in consumer sentiment tracks well with the increase in demand we are seeing on the lending side of our business. The obvious… 

In a Volatile Market, Where Can Cautious Investors Go? Don’t Overlook the Comfort and Safety of the Single-Family Home

It’s mid-October and our country moves ever closer to what could be the most contentious election of our lifetimes. We have already experienced one raucous debate and the legendary ‘October Surprise’ in the form of the President being diagnosed with COVID19.   Right on cue, volatility started to tick back up again in the stock market. Most investors would probably agree the increased levels of volatility could be expected in… 

Almost a Year Later, the Demand for Fix and Flip Still Strong

Back in November of 2019, we wrote about our doubts with the opinion that tightening margins in the house fix and flip industry was an indicator of the softening of the real estate market overall (The Fix and Flip Business is Increasingly Competitive). Our thesis then – as it is now – is that as long as the supply of houses remains crimped, and demand from home buyers is firm,… 

Three Ways that Volatility Can Harm Your Investment, and What You Can Do About It…

We’ve all heard that price volatility is bad for investments. However, most investors couldn’t give a great explanation as to how or why. Many would say that volatility is bad because it feels bad. After all, investors can lose money in volatile markets. It’s mentally and emotionally painful to see an investment drop in value. Without question, that is one reason why volatility is harmful to an investment. However, it… 

Chasing Yield

As bond yields drop to zero, investors take on unprecedented risk in search of yield. And hope the Fed has their backs. With the Covid-19 crisis showing no sign of abating, the Federal Reserve has cut interest rates to near zero in an effort to prop-up the economy.  In addition, the Fed has pledged to do ‘whatever it takes’ to support the economy going forward.  This includes launching a number… 

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…