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A few treats about real estate
& technology on a Friday
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This
is the MVP edition of S’mores - Bonfire's weekly snack bites
of ideas we thought you would
find interesting related to Real Estate, Finance & Blockchain. You are one of a handful of people to receive this, so please feel free to tell us how we can improve it. So, without further ado:
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91.8% of U.S. mortgaged homeowners have a rate below 6%
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Bonfire's Take: One of the reasons why housing prices have barely budged despite
interest rates doubling in the last year is people are locked into
long-term cheap debt. As long as people still have jobs and can pay
their mortgage, they aren’t moving. And waiting for housing prices to
crash could be a fool's errand.
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Global Layoffs Top 700k
Through Nine Months Cumulative job cuts by sector |
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Bonfire's Take: Global firings seem to be dissipating. 51,000 jobs were slashed worldwide in June, the lowest number since December, according to a Bloomberg analysis of job-cut announcements across almost 1,300 companies. Last month’s tally, which dropped 25% from May, marked the fourth decline in five months.
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🤔 A Quote Worth Pondering Over 🧐 |
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"If you have capital
& courage when capital & courage are in short supply, most of the time that capital & courage will pay off"
—Dr. Peter Linneman |
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Linneman is an economist at Wharton and explains in this podcast that based on his analysis of history, now is the time to be investing in commercial real estate.
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🔮 Something We're Considering 🔮 |
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Interest rates have jumped 500bp in the past 18 months. Around $270B of US commercial real estate loans come due this year (Source: Trepp) and $1.5T in the next three years (Source: Morgan Stanley). | |
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Where will be the pain and
where is the opportunity? | |
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Bonfire’s Investor Club will soon be able to access our next asset before the general public. We are targeting 10 deals per year with 15% IRRs that we personally are investing in alongside our Club. Since our assets tend to sell out quickly, if you want to join the Club, you will need to create an account.
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Have a wonderful weekend!
Joshua Kagan, Co-Founder, Bonfire
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About Bonfire
Our mission is to democratize access to real estate, enabling anyone to get on the property-ownership ladder. We do this by transforming income-producing real estate assets into tokens that get purchased by everyday folks.
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