What’s Trending In Real Estate – April

REA Newsletter 4.24.24

Moving Trends April 2024 - REA Accounting Newsletter

Consider Miami’s branded Baccarat Residences: a 75-story undulating glass tower with 360 homes and penthouses featuring “enlightened design” along Miami’s “brilliant Brickell waterfront.” For the fortunate few, this is where “life forever sparkles.”

Baccarat’s shimmering marketing materials describe the project’s “rarefied aesthetics” along with concierge teams always at the ready, luxury limousine service and “custom scenting that captures the essence and energy of Miami.”

The tower, which is set to open in early 2028, will feature a jewel-box lobby hung with epic Baccarat chandeliers that seem to drizzle light.

The 250-year-old French maker of fine crystal is a new player in a real estate branding game dominated by Ritz-Carlton, St. Regis and other premium hotel brands. Such residences have “exploded in the last five years,” says architect Bernardo Fort-Brescia, whose Miami-based firm Arquitectonica is an industry leader in the branding field.

Click Here To Read Entire Article (source: Forbes)

Investment

Many investors assume that ownership is inherently safer than debt. I currently own equity in thousands of units and have invested six figures in real estate debts.

I can tell you firsthand that it’s not—at least not always. 

Still, real estate equity and debt investments serve different purposes in your portfolio. Before parsing the risks of equity versus debt investments in 2024, it’s worth reviewing the roles each plays.

The Role of Debt Investments

Most debt investments come with a fixed interest rate. You know the return you can expect to earn, assuming the borrower performs. 

Real estate-related debts could be secured by a lien against real property. If the borrower defaults, the lender can foreclose on the property to recover the money. Or debt may not be secured with a lien but come with a personal or corporate guarantee. 

Click Here To Read Entire Article (source: BiggerPockets)