Pandora Papers aren’t about the rest of us, SoftBank and Pacaso and high-end timeshares, no foreclosure tsunami yet but the tide did rise, the richest real estate tycoons in America, short-stay housing demand looks promising.
Today on Millionacres
Real Estate Lessons from the Pandora Papers
Bombshell secret research called the Pandora Papers revealed on Oct. 3 exactly who is shielding their riches to avoid paying taxes and how they're doing it. These papers shed light on how the rich are getting richer through real estate holdings, while the rest of us middle-class types play by the rules, our Laura Agadoni writes.
The Millionacres takeaway: Seems the biggest blockers to transparency here are the U.S. and the U.K., but at least in those countries, just asking about the assets won’t get you arrested, as it will in some of the countries cited in the reports. At least not for now.
Softbank Invests $125 Million in Pacaso Despite Some Community Opposition
Pacaso, a co-ownership platform for luxury homes, recently announced a $125 million Series C funding round led by SoftBank's Vision Fund 2. Reportedly, the company has set a record for being the fastest company in U.S. history to have reached unicorn status. Meanwhile, opponents who see the platform as providing high-dollar timeshares in places they’re not wanted are trying to fight back.
The Millionacres takeaway: Our Brad Cartier writes here that co-ownership of real estate assets will be a growing trend in the coming years. As affordability decreases and people seek greater access to recreational properties both domestically and internationally, expect to hear more about platforms like Pacaso -- they aren't the only players.
Is a Foreclosure Tsunami Beginning?
According to ATTOM Data Solutions, August foreclosure starts jumped 27% higher than the month prior and were 49% higher than August 2020, but they are still well below pre-pandemic levels.
The Millionacres takeaway: Our Liz Brumer concludes that real estate investors should keep a close eye on this data for successful forbearance exits and new foreclosure starts in September and October, as they provide the greatest insight into the state of the distressed marketplace and what could be in store in the near future.
Also in Today’s News
The Richest Real Estate Billionaires on the 2021 Forbes 400 List
Donald Trump may have fallen off The Forbes 400 list of richest Americans this year, but his fellow real estate tycoons have boosted their wealth -- both in hot markets (Palm Beach) and those still recovering (New York), Forbes says.
The Millionacres takeaway: Well, The Donald may not be in there anymore, but it’s still a fun listicle to check out. Real estate investing can indeed still provide a path to some serious prosperity.
Short-Stay Housing Companies Are Confident Even as Workers Return to the Office
Even as some employers command workers back to the office, a handful of housing providers, flush with new venture funding, are betting that one pandemic trend is here to stay -- the demand for flexible, short-term apartment rentals, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: Good info here for real estate investors who have suitable properties to offer this market, or ways to invest in those companies that already do.