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Tom Olson6 Posts
Tom Olson is the founder of Good Success and CEO of Good Success and the Olson Group Network. He is the author of multiple popular books for real estate investors, including Contingency Planning for Your Small Business During COVID-19, The 30-Day Good Success Journey, Active Turnkey: The Best Way to Buy Rentals, and Investors vs. Contractors. Learn more about Tom and Olson Property Services at OlsonPropertyServices.com or by emailing him at TOlson@GoodSuccess.com.
Rent Moratorium Policies
Today’s Out-of-Control Inflation Could Have Been Avoided By Tom Olson What may have seemed like well-intentioned emergency measures taken during the first two years of the COVID-19 global pandemic are now having unintended consequences. Policies intended to help financially stressed and distressed people access housing have hurt everyone involved in the process of creating, providing, and making use of housing in the United States. These emergency measures played a major part in the drastic increase of rent prices, lit the fuse on out-of-control inflation that experts warn could derail the entire housing market, and created supply-chain bottlenecks in building materials and construction that may take years to work through. In the interim, a correction is coming. The precedents set during these “unprecedented times” have done lasting, likely permanent, damage to the way our market sectors and our economies at all levels (local to global) function. The only hope of averting additional damage is to clearly understand exactly what is happening now and why it is happening. Then, perhaps we can protect ourselves from the rampant, political targeting of real estate investors (particularly individual “mom-and-pop” landlords who have, in many cases, lost their livelihoods and retirements as a result) that has been going on for more than two years. A Dramatic Change in the “Tenant Obligation” Conversation The entire conversation around tenants’ obligation to pay rent has shifted dramatically from the traditional concepts that a legally binding contract legally requires individuals to pay predetermined amounts of rent to a more flexible landlord-tenant relationship that leaves force majeure open to a wide variety of interpretations. Not only will this have a lasting and negative effect on the overall availability of affordable rental housing, but it has done lasting damage to existing rental property owners who are unlikely to recoup losses experienced not only during the pandemic but as a result of this massive and unpredictable shift in housing policy. Sadly, although the vast majority of residents did their best to pay rent in full and on time (or at least partial rent when possible), some individuals who would not have traditionally qualified for financial assistance and mandatory forbearance programs took advantage of the system. This created a “black hole” not just for landlords but for those individuals as well; once the programs end, they are too far in debt to remediate the situation and must continue to seek outside-the-box options to extend their now-free tenancy. When this happens, properties that should, in the natural market, go vacant due to nonpayment and then be reoccupied by paying tenants are, instead, occupied by non-paying tenants who cannot be evicted for nonpayment. While the investor slogs through the process of figuring out how to evict the individual, negative emotions fester on both sides and, when the resident finally leaves, there is often serious property neglect and malicious damage to contend with. Furthermore, due to the ongoing extension of “foreclosure prevention programs” and “hardship programs,” rental owners find themselves in a position where they cannot bring in new renters or make housing available because they are no longer receiving rental income from existing properties and have no way to remediate the issue. As a result, it becomes more difficult to expand housing options in a market because it is more difficult to acquire new assets and the best strategy to generate income reliably may be to fix-and-sell these homes instead of rent in markets that previously would have been considered ideal for strategies that would allow for affordable housing providers like myself to operate in. Ultimately, as much as 10% of existing affordable housing should be considered permanently unavailable due to the difficulty of evicting non-paying, “permanent” tenants. This exacerbates problems with affordable housing supply and discourages the creation of new affordable housing. When public policy removes 10% of the potential new, affordable housing available, all tenants suffer and those best positioned to “jump the line” by offering perks to the landlord like a “bonus payment” to put them at the top of the list are the ones who snag what little housing there is available. Naturally, rents must rise even faster in units that are available to compensate for the ones that are not — otherwise, the entire housing operation goes under. How the Markets & Inflation Have Reacted to Pandemic-Justified Housing Policies The unbalanced and largely arbitrary removal of vast swathes of affordable housing stock from the open market between 2020 and 2022 has had troubling (and significantly delayed) effects on the financial markets. It seems only recently the fallout from investor uncertainty and general malaise caused by the near-total invasion of public policy into a private market has become apparent. The results speak for themselves. Ultimately, however, the parties that suffer the most will be rental owners and reliable, rent-paying tenants who now find themselves unable to afford to retain their assets, in the case of the landlords, or find affordable housing, in the case of the residents. In 2020, only about 62% of landlords were able to collect 90% or more of rents owed them, and individual landlords, naturally, experienced far greater exposure and impact than institutional owners. Much of that rental revenue will never be recovered. When these existing housing factors are combined with rampant inflation, it quickly becomes apparent that we are facing a turning point in the real estate investing sector. There is no doubt that real estate investors will continue to make creative, innovative, and, ultimately, profitable decisions for their assets. However, with ongoing supply issues and skyrocketing costs associated with acquiring, owning, and maintaining affordable rentals units, more investors are likely to steer clear of the vital sector of the market serving the population with the greatest need: affordable housing. Instead, pandemic-era housing policies are forcing the real estate investing population away from its traditional role as a problem-solver and into a position where individual investors may be vilified and maligned with impunity for simply being unable to continue past investment behaviors in current market conditions.
The Massive Potential and Pitfalls in Notes for Self-Directed Investors
2021 May Be the Best Year Yet for Private Lenders…If They Are Careful by Tom Olson When speaking with self-directed investors who are considering acquiring turnkey rentals in their retirement accounts, I always make sure to tell them that a slightly more “creative” option might better suit their needs. Without losing the benefit of holding a real estate-related asset, they can invest with a far greater tax advantage if they buy or originate well-considered private loans. This is also true for investors looking to diversify their portfolios. Last year was definitely a year for diversification, and many real estate investors, self-directed and otherwise, decided to expand their portfolios to include real estate-secured private loans. There are many reasons to love having this type of loan in your self-directed IRA or 401(k). A few reasons are: They are extremely low maintenance. They are often even more secure and low risk than turnkey rentals. A borrower will almost always prioritize real estate-related debt over other debt obligations, making a private note extremely predictable even when the economy is volatile. Furthermore, when you are using a self-directed retirement account to make these loans, you can be extremely creative with the terms of the loan. This represents nearly unheard-of potential for self-directed investors to buy and sell private notes. However, that creativity has led to some new pitfalls in the asset class as well. Case Study: Why This “Great Note” Might Not (and Maybe Should Not) Sell With more investors, self-directed and otherwise, moving into the private lending space, there are more notes available for purchase and sale. It might surprise you to learn that many investors do not originate their private loans but instead buy them from other investors. As you can imagine, this can be complicated if you are just getting started in the space. Here is a real-life example I recently observed of a note that could have gone really wrong for someone: The “deal” came from a Facebook post wherein the note-seller was attempting to sell an active land contract. The original note balance was $71,500, and the unpaid principal balance was $67,272.27. The note had an interest rate of 9 percent, and the estimated market value of the collateral property was $125,000. The note was “performing,” meaning the payer was paying monthly and on-time. When the seller posted his ad along with the notice that he wanted a full, cash payment for the note and that he wanted to sell at face value ($67,000), the forum erupted with jokes and other commentary. People started “bidding” on the note, starting around $10,000 and nudging the bid upward in increments of a dollar. There was a lot of hilarity, until a local investor quite seriously posted that he wanted to buy the note and did not understand why everyone was laughing at the proposal of paying $67,700 to get 9 percent interest on that loan. At that point, I knew I had to respond before that investor potentially fell right into a pitfall with his hard-earned retirement capital. Here is what I told him: First, most note investors want to earn 10-12 percent a year on their investment, which means most investors probably do not want to pay face value for single-digit yields. Second, there are three things to consider when you are buying a private note if you plan to either keep the note performing or attempt to reinstate it: 1) Who is the borrower? Vet a potential borrower the same way you would a tenant unless you want the collateral property. Too many investors vet borrowers far less than they would tenants. A good note for sale will have a credit report and other information about why the loan was made. Not all notes will have this information, and you need to decide if you are willing to take the risk on the deal even though you might end up owning the property if the borrower defaults. Once you make this decision, vet the property the same way you would any other real estate deal. 2) What is the quality of the asset? Sometimes private lenders will take on a risky deal because they are fine with foreclosing and ultimately owning the asset. However, this process can take longer and be more expensive than you might think. Make sure your strategy will accommodate the value of the asset and the potential cost of holding it. Get an appraisal and quotes for repairs if appropriate before makingan offer. 3) How solid is the paperwork? You can never assume that you are buying a note with good paperwork. Have an attorney review the terms of the note and confirm that it protects the lender’s interests and holds up under the Dodd-Frank Wall Street Reform and Consumer Protection Act that was passed in 2010. If the paperwork is not solid, some investors will buy the note anyway, but they tend to insist on a discounted price because weak paperwork weakens the asset. Ultimately, I do not know for sure if the note-seller ever made a deal or not. However, I did learn several things from that post and subsequent commentary: There are still a lot of opportunities on social media if you can look past the political “garbage.” There are still a lot of people doing real estate deals on Facebook. Creative real estate is still alive and well. The opportunity mindset will make or break investors in 2021. Make sure you are willing to be creative and dedicated to making sure your creativity is optimized to generate returns for your portfolio.
3 Reliable Sources of Information in an Age of Media Bias
The truth about the markets is still out there if you know where to look. Sadly, one of the most significant trends of 2020 will likely fall by the wayside for most people. It will not be discussed on the evening news, and it will not be the subject of dinner-table conversations in the average home. However, this trend has the potential to be devastating for real estate investors and real estate professionals who remain unaware of it. This potentially devastating trend is the plethora of unreliable and biased data that’s overwhelming nearly every industry sector. For a real estate investor, unreliable data is an anathema. Sadly, one of the worst things that has resulted (in large part) from the COVID-19 pandemic is that everything in our lives today is highly politicized—including our health, our basic demographic data and our approach to business. In a world where the decision to wear or not wear a mask has become a partisan statement and medical data is wielded like a weapon instead of the valuable research tool that is should be, real estate investors are hard-pressed to find market data that hasn’t been twisted and distorted. Investing wisely relies on your ability to conduct effective and accurate due diligence. Fortunately for our industry, there are a still a few familiar standbys that are extremely hard to distort. Data that does not lie is still accessible if an investor knows where to look. Let’s take a look at three of my favorite market metrics. Key Market Metrics 1) Inventory Levels. There are many ways to interpret housing inventory levels, but the actual number of houses available is pretty hard to distort. Most investors have historically steered clear of observations that markets with limited inventory (i.e., “unhealthy” inventories) are too hot and that markets with large volumes of inventory (i.e., “soft” inventories) are too cold. After all, the key to a hot or cold market relies entirely on your investing strategy and how you source your leads. The market that is hot for a fix-and-flip investor may not necessarily be the same market that is hot for an Airbnb investor, although they certainly can be. To analyze how a market’s inventory affects you, first find out what the inventory is. Find out what types of properties are in short supply, and then apply that information to your strategy or product. For example, in the areas of Indiana that are within about a 90-minute radius of Chicago, there is a serious shortage of single-family rental properties. In fact, these communities are experiencing huge demand for these types of properties because many people have realized that remote working is going to be an option and they no longer want to live in the close quarters of a metropolitan area. If you invest in single-family rentals or you fix-and-flip in the middle tier of affordability for housing in this type of area, then the Midwest inventory data indicates this could be a great location for you. 2) Building Permits. In states and regions that are proving to be pandemic-insulated or somewhat pandemic-resistant, building permits are still on the rise. If you are wondering about the underlying health of a market, peek into the building permit records. In Georgia, for example, building permits are still up. It is no coincidence that this state also classified construction as an “essential service.” 3) Days on Market. Days on market is a classic indicator that most real estate investors already use to evaluate the viability of fix-and-flip deals. After all, when you are estimating the timeline for a project, you need to know how long you should expect to hold that property once the work is complete. However, every residential real estate investor should be looking at this metric today because it provides an indication of how much demand there is for housing in general in the market. Do not just look at properties that are comparable to yours either. To get an idea of overall market health, look across the spectrum to see what other types of properties and the populations that reside in them are doing. Be a Leader Your ability to read the markets, pivot when necessary and make responsible decisions with your own capital and the capital entrusted to you is crucial to your success in 2020 and beyond. Successful real estate investors have always placed a premium on being able to do good due diligence with sound data. In this one way, at least, nothing has changed.
How the COVID-19 Crisis Continues to Impact Real Estate Investors
The economy is open, but that doesn’t mean we’re “back to normal.” Things have changed dramatically for real estate investors since the start of 2020. In January, real estate investors were still shaking hands with everyone at seminars, slapping each other’s backs at networking events and doing everything they could to “get out there” in competitive housing markets around the country. Now, just six months later, investors are bumping elbows or simply nodding a greeting from six feet (or more) away from each other. The seminars and masterminds have come to a screeching halt, for the most part, although the economy is beginning to reopen. The term “reopened economy” is pervasive these days. But what does it really mean? As with so many things in both real estate and the world right now, the nomenclature changes wildly from state to state, market to market and speaker to speaker. For real estate investors, the reopened economy means some major shifts in historical norms are heading our way. For investors who are watching for these changes, accept there is a “new normal” headed our way and are prepared to act, the second half of 2020 could be one of unprecedented opportunity. Contrarian Movements Aren’t Just Political Anymore We all know “that guy” on social media who says the opposite of what everyone else says just for the likes, comments and outrage it creates. These contrarians are particularly prevalent in the political arena, and objective investors tend to ignore them because they are usually almost all bark with very little bite. In the wake of the COVID-19 shutdowns, a physical contrarian movement is gaining steam. These days, you need to watch the actual movement that accompanies surprising consumer preferences to see whether people are simply “talking the talk” about making major life changes that will affect housing in their markets, or whether they are listing their houses and “walking the walk,” so to speak. For example, for the past 10 years, the general population has had a distinct preference for urban housing markets. We have seen strong demand for walkable neighborhoods, multiuse developments and more affordable urban living options. Young professionals have been overwhelmingly willing to delay homeownership, marriage and children in favor of renting with roommates in centralized locations with access to jobs, entertainment and public transportation. Now, however, those preferences have reversed. Entrenched populations in New York City, San Francisco and many other coastal cities are moving toward the outer edges of city suburbs or toward the Midwest and Southeast. This movement is a result of many factors. Among the biggest are: Remote working Health concerns Safety concerns Housing affordability When the coronavirus sent all of us into remote-working mode, it did more than give parents a new appreciation of their children’ teachers. It helped employees and companies realize that remote working on a large scale is truly an option. Although many homeowners and renters might not be willing to commute 90 minutes to work each day, the idea of making that drive once a week or a couple of times a month is not nearly so terrible. Further, since housing prices have not slumped in the way many analysts predicted they would this spring, housing affordability in the Southeast, Midwest and more rural areas of the country creates a compelling case to move for individuals no longer interested in the amenities and advantages of living in the city center. Rental Preferences Are Shifting One of the biggest short-term results many investors are seeing from this movement away from big cities is that rental preferences are shifting. Single-family rental owners are finding their product, always a strong asset as a long-term cash-flowing strategy, are in higher demand than they have been in about a decade. The outflow of residents in metropolitan multifamily units looking for suburban or even rural single-family options is driving the demand. Multifamily investors at the extreme high and low ends of the spectrum, on the other hand, are struggling, as luxury tenants literally move to greener pastures, and vulnerable renters find themselves unable to pay rent and unlikely to be evicted, at least at the present time. This shift in renter preferences is creating strong opportunities for real estate investors in both single- and multifamily residential real estate.If you have been wishing you could get involved on the multifamily fix-and-hold side via a syndication or other group project, now is likely a great time to do so at lower entry levels. On the other hand, if you already hold single-family rentals in your portfolio or want to add more of them, then now is the time to acquire properties in those trending areas where residents have started looking. Pay Attention and Optimize Everything With residential preferences changing so quickly, it’s important for real estate investors to remain actively engaged in tracking these trends and, furthermore, in optimizing their portfolios. Investors must watch market rent rates because they are not, as the “talking heads” might have you believe, falling. In fact, in most B Class and C Class neighborhoods, home values and market rents are rising. It is important not to let the COVID-19 pandemic convince you that nothing is going on and you should just be happy if you are collecting anything. The reality is that this is a time of growth in many areas and sectors of the country. Do not let that growth leave you and your real estate portfolio behind.
5 Economic “Side Effects” of the Coronavirus
How you respond to them could mean the difference between the survival or total failure of your business. For real estate investors, COVID-19 hits very close to home. Literally. In some states, investors find themselves in terrible financial danger because they cannot finish their flips, show their properties, rent to new tenants or evict residents delinquent on their rents. In other states, the opposite is happening. Real estate investors are, as they naturally tend to be, serving as the backbone of troubled communities. They are creating new, affordable residences where people can live. They are working to provide financing and funding in an era where many banks will not or cannot do so. They are building new developments and renovating old buildings into new, productive spaces. As the true face of the coronavirus more fully emerges, we will continue to adjust and reevaluate how we look at the responses of our own businesses and states. Regardless of who opens “too early” or waits until “too late,” the country is certainly in the midst of some serious economic “side effects” of the virus that will directly impact real estate investors now and likely for years to come. Side Effect #1: 20% of children are not currently getting enough to eat. With school breakfast and lunch programs suspended along with school, many children are not getting nutritious meals. Although most public school systems and local support organizations like churches and food banks are working hard to fill the gap, many kids and their families will be underfed during the summer months. What does this have to do with real estate investors? It will affect families’ overall financial situations and likely how they choose to locate—or relocate—their children prior to fall, when schools currently plan to reopen. Districts that care for their hungry children throughout the summer and appear most likely to open in the fall will be attractive to families dealing with this harsh reality. Good Success Insight: This issue is relevant to investors on a more individual level as well. Check in on your tenants! You could help them stay afloat by connecting them with local services, and you might just keep their finances in a better state as well. Plus, it’s just the right thing to do. Side Effect #2: People are buying new things instead of remodeling. Big-box home-improvement stores like Home Depot appear likely to post banner earnings for the first quarter of the year. But, overall, Americans are spending more money on things for their homes—things like entertainment items, new furniture and décor—than they are on serious remodeling projects. Consider a comparison of Home Depot and Wayfair performances. During April 2020, Home Depot stock rose 12% in value. Wayfair, an online home goods retailer, grew revenues by “roughly 90%,” according to an online earnings call at the end of April. The company’s CEO, Niraj Shah, said the spike coincided with stay-at-home orders (which dramatically accelerated e-commerce adoption in the home goods category) and federal stimulus check mailings. For real estate investors, this shift means the era of HGTV-driven home design and home-buying could be shifting. If homeowners have more things they like to put in their houses, it may be necessary to cater to the looks and design trends appearing in online marketing pieces instead of to those appearing on reality real estate television. Side Effect #3: Young adults’ homeownership preferences will likely change—again. Just in time for the millennials to start recovering from the trauma of the Great Recession, coronavirus slammed into the junior portion of that population. And Gen Zers, who are just now graduating from college, have had their efforts to enter the workforce hit with a staggering and unprecedented trauma. Frequently ill-equipped to work remotely despite intimate familiarity with all things digital, Gen Z could be entering a period that may put many millennials’ delayed “launches” from their parents’ basements to shame. They are facing social distancing, remote learning, sky-high student loan debt and the highest U.S. unemployment rate on record. When Gen Z does leave the nest, it will likely be for an extended period of renting and without any feasible options for homeownership for at least a decade. Real estate investors will have an opportunity to provide solutions and options (e.g., various multifamily housing options that are affordable and meet the needs of today’s young adults). Many analysts predict that Gen Z may never feel any desire to own a home at all or be able to do so. However, it is more likely that Gen Z’s response to this pandemic will be similar to how millennials reacted to the housing crash and Great Recession: opt to rent longer but eventually move toward homeownership when their finances permit them to do so. Side Effect #4: Green is going to equal gold. Everyone has seen the walkers, the joggers, the bikers and the newly initiated nature lovers out there clogging up the roads, sidewalks and hiking trails. Whether COVID-19 turns out to be vulnerable to sunlight or not, everyone has a new appreciation for the outdoors these days. Homeowners and renters will be looking for areas where they can enjoy the outdoors while keeping a safe distance between themselves, their families and others. Proximity to parks, while always a value-add, is likely to become golden in the coming months, as is a high walkability score and the private patio or deck. In 2018, the National Association of Realtors and the National Association of Landscape Professionals predicted homeowners who added fire features that included a gas burner and patio area would reap a 67% return on investment upon sale. Today, estimates range from 78% ROI to more than 100%. Customers at local home goods stores are getting into fist fights over patio furniture. It seems safe to speculate outdoor living space is getting ready to have another big moment. Side Effect #5: Location is still going to be everything, but the costs are going to be more severe. As the year progresses
The Economic Bubble is Hiding in Plain Sight
Investors, beware and be aware—constriction is coming. We are so far into the longest economic expansion in the history of the U.S. that just about everyone—no matter how bullish on their particular market—is stuck in a waiting pattern. Currently, our economy, our country and, arguably, our housing market are all subject to an array of uncertainties, including: COVID-19 (the novel coronavirus that first appeared in Wuhan, China) and its impact on global health and the Chinese economy. The 2020 U.S. presidential election. Cybersecurity threats, including the recent Equifax breach that compromised the data of an estimated 145 million Americans. A volatile stock market. A looming housing affordability crisis. Inflation. Student loan debt. Overall consumer debt. The list goes on and on. Despite the uncertainty, the economy and investors are not behaving as most would expect. They are behaving as though we are in the middle of an economic expansion rather than riding high on what can only be called a bubble, to put it bluntly. Investors who fail to acknowledge and react strategically to the presence of this bubble will fall hard in the next 12-24 months. Do not be among those who simply shut their eyes and refuse to acknowledge that sooner or later, the end of this upswing is coming. I tend to be a pretty unpopular guy when I say we are in a bubble or that the economic expansion is barreling toward the end of its life. I understand. No one likes to hear that the “good times” are almost over. Our industry does, however, gradually seem to be accepting that an eventual economic downturn—or at least a leveling off—is realistically inevitable. 3 Things to Know About the Bubble When it comes to the next several years and our economy, there are three things every investor and small business owner must realize: 1) Real estate market cycles have historically been twice what “conventional wisdom” says they are. Looking back over 200 years instead of just 20, you will see that the biggest market cycles for real estate are not seven or 10 years, as most people think they are. Rather, they are about 18 years. Counting from the crash (2007 or 2008), you can see we are sitting right on the 18-year threshold as we enter 2020. Keep in mind that not every recession is exactly like the one we just went through—most recessions are not 18 months long! In fact, the average length is 11 months, and the two prior to the Great Recession lasted nine months (the savings and loan crisis of 1990-1991) and eight months (the dot-com bust). Although some economists are warning that the present extended boom will be followed by an equally extended bust, the odds are against this happening. Why? Because the Great Recession was a result of a combination of negative behaviors in two of the pillars of our country’s economic stability: the housing market and the financial markets. While some may argue that not everyone “learned their lesson” after the housing crash and financial meltdown, most of the problematic, institutional behaviors that led to that crash have since been remediated. Takeaway // Not only is it unlikely the next downturn will last as long as the last one, but it is also unlikely it will stem from the same weaknesses in the system. 2) The next downturn is unlikely to hinge on housing. Supply and demand remain (and likely always will) the most influential factors in the life span and nature of real estate cycles. For this reason, the next downturn and economic cycle will be different from any other correction when it comes to real estate. More than ever before, regional real estate performances will diverge from one another. Some areas will rise significantly in value while others fall. This happened to a limited degree during the 2008 housing crash, particularly in areas of the country like Dallas, Texas, which had not experienced the astronomical appreciation rates the rest of the country had leading up to the crash. When the market fell, the Dallas market softened slightly and then proceeded to go on the tear it is still experiencing today. By comparison, Boston went through a major upswing prior to 2008. But by 2009, houses were selling for half their former value. Likely, the next downturn will certainly affect the housing market and real estate sector, but it is unlikely to be caused by the housing market. This means that different facets and tiers of real estate will react differently. It is far more likely that a recession will disproportionately affect higher tiers of the housing market, driving owners in those brackets downward to lower-cost residences, than send the entire housing supply plummeting in value. Looking into my “crystal ball,” my best prediction is that if you invest in areas with price ranges between $300,000 and $600,000, these will be the properties most likely to go “on sale” during the next downturn. By comparison, highly populated areas with homes under $200,000 will continue to rise in value because it is nearly impossible to build properties at that price point in today’s market. Upper-tier properties have been overbuilt, and lower-tier properties are undersupplied and in high demand. Takeaway // If you can buy homes under $200,000 in areas where there is any type of job stabilization, you will be in prime position to build your portfolio during the downturn and benefit over the long term from your foresight. 3) Inflation will be part of the equation. Although the Federal Reserve seems determined to keep interest rates low for as long as possible—probably until after the presidential election—it will eventually be impossible to continue to postpone inflation and an economic correction. When interest rates do normalize and we see 6% or 7% interest rates once again (which are still quite low by historic standards), the affordability of the midrange properties I mention in #2 will diminish greatly. Takeaway // Lower-tier, affordable housing will be the hottest “ticket” in
