Connect with us

Real Estate News

What are ‘whisper listings’ in real estate? Red-hot housing market has them on the rise

Avatar photo

Published

on

TipRanks

Billionaire George Soros is taking on these 3 “Strong Buy” shares

Some investors achieve legendary status and rise well above their competitors through a combination of luck and success. Perhaps no one exemplifies this more than George Soros, the Holocaust survivor who graduated from the London School of Economics after the war and went into banking to make a name for himself. He was incredibly successful. The hedge fund he founded, Soros Fund Management, achieved an average annual return of 33% from 1970 to 2020, making it the most successful hedge fund in history. Soros’ greatest single hit was on September 16, 1992 when he “broke the Bank of England”. He had taken a short position in sterling that was raised to $ 10 billion, and when the pound fell in response to political change, he personally made $ 1 billion in a single day. Soros wasn’t always right about his financial calls, but he’s more right than wrong. He is also known for his bon mots when it comes to talking about trading. “It is not about whether you are right or wrong,” Soros was quoted as saying, “it is about how much money you make when you are right and how much you lose when you are wrong.” With this in mind, we decided to look at the recent activities of Soros Fund Management as inspiration. With three stocks that the fund added to TipRanks’ database in the first quarter, we noticed that the analyst community was also on board, as each stock had a consensus rating of “strong buy”. Farfetch, Ltd. (FTCH) We’re starting out with an online retail inventory, Farfetch, a company that specializes in selling luxury goods and brands. Farfetch is a truly international company with headquarters in Portugal, headquarters in London and offices in New York and LA, Tokyo and Shanghai, and Brazil. Like many tech-centric companies, Farfetch has faced a loss – but in the first quarter of this year the company made an abrupt turnaround toward profitability. The earnings report for the first quarter of 21 showed after-tax income of $ 516.7 million compared to a quarterly loss of $ 79.2 million a year earlier. The company announced that these gross earnings included a one-time non-cash benefit of $ 660 million “resulting from the lower impact of share price on fair value items and revaluations.” Total revenue from operating activities was $ 485 million, up 46% year-on-year and higher than analysts’ forecast of $ 457 million. A key metric, the gross value of orders processed through the company’s platform, increased 49% year over year to $ 915.6 million. Farfetch’s success relies on a strong user base. The company has more than 3 million active customers and operates in 190 countries. Sellers on the platform have made available over 1,300 luxury brands. Even after falling in value in the first half of 2021, the stock is still up an impressive 234% over the past 12 months. One of the fans of FTCH is Soros. In its most recent release, Soros announced that its fund had purchased 125,000 shares of FTCH, a stake that is now valued at more than $ 5.5 million. Stephen Ju, 5-star analyst at Credit Suisse, rates FTCH with outperformance (ie buy) and a price target of USD 78. Investors can pocket a profit of ~ 88% if the analyst’s thesis prevails. (To see Ju’s track record, click here.) “We are positive about the company if it maintains Adjusted EBITDA guidance as Farfetch will reinvest the higher revenue contributions to customer acquisition – which supports long-term adoption rates. We are modeling ~ 700,000 new customers for 2021, ~ 600,000 for 2022 and from 2023 our expectations are also unchanged at ~ 1.2 to 1.5 million, ”said Ju. The analyst summarized, “Our investment theses remain: 1) The large addressable market of $ 300 billion remains fragmented and underpenetrated. 2) Relative protection from competition from online, larger-cap emerging market competitors.” Most analysts support Ju’s confident stance on the online fashion company as TipRanks Analytics presents FTCH as a strong buy. Based on 8 analysts who were surveyed in the last 3 months, 6 rated the share as a buy and 2 as a hold. The 12-month average price target is $ 60.63, an increase of ~ 37% from current levels. (See FTCH stock analysis on TipRanks.) Coursera (COUR) Next stock, Coursera, is a MOOC company – a massive online open quote provider. This niche takes advantage of the size and reach of the internet to bring a wide range of top quality university courses to the masses. Coursera is a leader in this field and since its inception in 2012 has offered more than 4,000 courses from over 200 universities in more than 30 degrees and at a lower cost than individual tuition. Through Coursera, students can take courses at world-class schools such as Imperial College London, the University of Illinois Urbana-Champaign, the University of Michigan and Johns Hopkins. The company is proud to have over 77 million students using its services. While the company is 9 years old, it is new to the public markets; Coursera held its IPO at the end of March this year. 15.73 million shares were made available on the NYSE at an opening price of $ 33. This was the high end of the initial price range, which was set between $ 30 and $ 33. In total, the initial public offering raised $ 519 million before expenses. At the beginning of May, Coursera published its first quarterly report since going public. The report showed total revenue of $ 88.4 million, up 64% over the previous year. The company’s gross income was $ 49.5 million, 71% higher than the prior-year quarter. George Soros saw an opportunity in that IPO and his fund added 105,000 shares in the company. This new position is valued at ~ $ 4 million at current stock prices. Among the cops is 5-star analyst Ryan MacDonald of Needham, who makes a clear, bullish case for Coursera stock. “With the growing role of automation, the growing skill gap and the shift to online learning, we believe Coursera’s comprehensive platform will help us share a large TAM that ranges in size from $ 47 billion to $ 50.6 billion. Dollar lies. While the COVID-powered tailwind leads to registered student growth in FY20 FY21 to a difficult consumer segment, we believe Coursera’s efficient GTM movement and shift to higher-end corporate and degree offerings will result in sustained growth of over 25 % and a gross margin, ”MacDonald noted. To that end, MacDonald rates COUR stock for a buy and its target price of $ 56 shows confidence in an uptrend of 47% over the next 12 months. (To see MacDonald’s track record, click here.) In his short time on the stock exchange, COUR has received 14 analyst ratings with a breakdown of 12 buys into 2 holds to aid the consensus rating for strong buys. The shares trade for $ 38 and their average target price of $ 54.67 implies an uptrend of 44% for a year. (See COUR stock analysis on TipRanks.) Sotera Health (SHC) Last on our list of new George Soros positions is Sotera Health, a holding company whose subsidiaries provide a range of healthcare consultancy, laboratory testing and sterilization services. Sotera’s businesses are aimed at more than 5,800 healthcare customers in over 50 countries. The company has 13 laboratories that can perform more than 800 tests and 50 sterilization facilities. Sotera customers include 75 of the 100 largest medical device manufacturers and 8 of the 10 largest pharmaceutical companies. SHC shares went public on November 24th last year, in an IPO that sold 53.6 million shares and raised $ 1.2 billion. The capital raised was used to repay existing debts. The company has been working diligently to reduce debt, and in its first quarter 21 report stated that it had total debt of $ 1.87 billion and available cash of $ 108 million. Net sales for the first quarter were $ 212 million, up 13% year over year. Net income saw a strong profit that went from a loss of 1 cent per share a year ago to earnings per share of 4 cents. In the first quarter, Soros took a new position in Sotera and bought 179,274 shares of the stock. At current share prices, this stake is valued at over USD 4.3 million. Tycho Peterson, 5-star analyst at JPMorgan, likes SHC and rates the stock as overweight (i.e. buy). Its price target of USD 35 indicates an upward movement of 45% from the current trading level. (To see Peterson’s track record, click here.) Peterson confirms his stance: “First quarter results were generally strong and while forecasts remain unchanged, this should provide a way up for the 2021 balance as we continue to be fans of the company’s diversified operating platform, sticky multi-year contracts, efficient pricing strategy, and high level of oversight over regulators, all of which support the broad competitive gap, and FCF to aid in de-leveraging… “Overall, the road was up on Sotera -Shares agree; The stock recently made 8 positive ratings, which support the consensus rating of Strong Buy analysts. The shares are trading for $ 24.06 and their average price target of $ 31.75 implies a year-long upward movement of ~ 32%. (See SHC stock analysis on TipRanks.) To find great ideas for trading stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, ‘a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Real Estate News

Get In On the Real Estate Market Now

Avatar photo

Published

on

If you are a high net worth individual or are a high-income earner, you should consider real estate for these four reasons: tax benefits, passive income, long-term asset appreciation, and leverage. Real estate is currently on the forefront of everybody’s radar since the last the crash in 2008-2010. But has anyone ever explained why it is such a wealth building and income protecting investment vehicle?

No? Well, as an investor and an attorney I routinely advise clients on real estate issues and help them with their investments. In this article I will explain to you why real estate should be part of your investment portfolio and why you should get in now while the market is cooling.

REAL ESTATE AND TAXES

Real estate is one of the few asset classes with multiple tax benefits that are under appreciated by financial advisors. Why? It could be that financial advisors don’t make a commission on them or that you actually do not need a financial advisor to get into real estate. Not to diminish the role of your advisor but you do not need a financial advisor to understand these tax benefits of real estate.

  1. Real estate is valuable. Yes, you can depreciate residential real estate over 27.5 years and commercial real estate over 39 years. 26 USC Section 179 allows for the depreciation of real estate over the life of the asset class, and in the case of real estate, you can take a $500,000 residential property and depreciate it over 27.5 years. This means that you can deduct $18,181.81 each year in depreciation.
  2. Real Estate Capital Gains Can Be Deferred. Under Section 1031 of the Tax Code, if you hold a property for the requisite holding period, which is not defined in the Tax Code, you can sell that property via a like-kind-exchange using an intermediary to hold the funds while you identify a new property or properties within 45 days and close on those identified targets within 180 days. This allows you to defer capital gains taxation and forebear depreciation recapture while buying larger and, hopefully, better cash flowing real estate assets. Thus, this tax mechanism allows the investor to take their profits and leverage those into more assets thereby growing the real estate portfolio in a tax efficient manner.
  3. cost segregation. Depreciation of the real property can be accelerated by using cost segregation studies to break the assets into its various parts that fall under separate classes to allow the individual components to be depreciated over 5.7, or 15 years. This allows the property’s components to be utilized in a tax efficient manner instead of using the 27.5 or 39 year class life of the entire asset. A net result of a cost segregation study is to accelerate the depreciation to allow for more Section 179 depreciation to be taken earlier in the asset’s life.

    While more tax nuances can be discussed, these are the tax benefits that high net worth individuals should look into. Additionally, by working with a sophisticated lawyer who understands the needs of the individual and their goals, tax losses can be carried forward to future years.

REAL ESTATE AND PASSIVE INCOME

Whether using long term residential real estate, commercial storage units, short term residential real estate or apartment syndication deals, real estate allows the owner and investor to take a passive role in the management of their real estate by utilizing property managers.

The use of property managers provides the investor with the peace of mind that their investment is in good hands for day-to-day matters such as maintenance, and that their tenants are safe in the knowledge that they have someone to turn to in the event a need arises. Moreover, for the cost of the monthly management fee, ranging from 3-40% of the monthly gross rents, higher percentages are usually found with short term rental management and lower fees with long term residential property management, there is no need to worry about Late night phone calls about a clogged toilet.

Property managers will also ensure the yard is maintained, the utilities are being paid, the tenants are of the caliber desired, and any marketing efforts to rent the properties are being undertaken to ensure maximum rental potential. At the end of each month, a revenue statement is generated by the property manager, and a check or direct deposit is provided into the bank account the investor designates. A true passive investment.

ASSET APPRECIATION AND LEVERAGE

While your tenant is paying the rent each month or in the case of short-term rentals, multiple tenants, the note held by the investor is being paid down. Historically, real estate appreciates in value so the asset is increasing in value. As the asset increases in value and the debt is being paid down, the investor is receiving the benefit of equity growth. It is with that equity growth that the value of real estate cannot be overstated.

By tapping into the equity growth through a refinance or an equity line of credit, the investor can leverage that internal equity to purchase additional real estate. The additional real estate purchases allow the investor to generate more cash flow, and more tax benefits. Regardless of the asset type, short term, long term or commercial real estate, the benefits to the investor are tangible in the form of tax deductions while maintaining monthly cash positive receipts.

While many investors are looking at the current real estate market, it would be well worth their long-term goals to consider real estate as a supplement to their financial portfolio. As iconic long-term investor Warren Buffet said, “Be fearful when others are greedy, and greedy when others are fearful.”

Written by Brian T. Boyd, Esq.
Have you read?
Best Business Schools In The World For 2022.
Best Fashion Schools In The World For 2022.
Best Hospitality And Hotel Management Schools In The World For 2022.
Best Medical Schools In The World For 2022.
The World’s Best Universities For Doctors of Business Administration (DBA), 2022.

Track Latest News Live on CEOWORLD magazine and get news updates from the United States and around the world. The views expressed are those of the author and are not necessarily those of the CEOWORLD magazine.

Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Thank you for supporting our journalism. Subscribe here.
For media queries, please contact: info@ceoworld.biz

Continue Reading

Real Estate News

Opinion: Here’s the latest data on what Realtors are witnessing in the housing market

Avatar photo

Published

on

The real estate market has shifted, and we are in a new housing paradigm. Mortgage interest rates have risen quickly in the past few months further eroding affordability. However, there are a number of attention-grabbing headlines, which unfortunately only compare today’s housing market to the very recent history of the last two years. It is always good to know where we are with the real estate market, but it is essential to keep all data in historical perspective.

The monthly Realtors Confidence Index helps to dispel many of the myths and cut through the noise of what is currently happening in the market. the National Association of Realtors Research Group has produced the index since 2008, at a time of turmoil in the real estate market. It is a monthly pulse on what is happening in the market from the perspective of Realtors who are active in the field. Questions have evolved and shifted overtime, but it is a steady resource of what is happening on the ground.

As reported in the latest NAR Existing-Home Sales, inventory still remains in tight supply, which means homes are still moving at a fast past despite the recent rise in rates and home prices. The median days on market is just 16 days — a slight increase from the record low seen in the last two months of 14 days. In comparison, in 2011, homes took 96 days to sell.

Notably, the market has contracted as fewer buyers can afford to purchase in today’s market with the rise in interest rates and the continual rise in home prices. However, in many areas of the country it does remain a seller’s market. For every home that was listed, there were 2.5 offers. This is down from the frenzied market from April of this year when every home that was listed had 5.5 offers. Historically 2.5 offers represents a competitive housing market, edging towards a balanced market.

One way to understand the competitiveness of the market is to look at buyers who are waiving contingencies. While this data series is shorter, it does reflect a slight ease that mirrors the number of offers for every home. There had been nearly one-third of buyers who waived an inspection or appraisal contingency, but the last month it fell to just over 20% for both.

Another measure of the housing market is whether a realtor had a client who had a distressed sale in the last month. Due to the consistent rise in home prices, homeowners typically do have equity in their home distressed sales are not common today. In 2008, 49% of Realtors had a client with a distressed sale, today it is only 1%. Another reason why distressed sales are likely low is that lending standards remain tight. It is difficult to obtain a mortgage today. A housing borrower must have a higher credit score, significant savings, and higher incomes to qualify for a mortgage and compete in today’s housing market.

Last month, we saw a shift in who is purchasing homes. There is a reduction in the share of all-cash buyers who may be waiving the home appraisal, and a reduction in vacation and investment purchases. All cash buyers now stand at 24%. The last high among all-cash buyers was seen at 35% in 2014.

The share of non-primary residence buyers is now at 16% from a high of 22% in January 2022. In January of 2022, there may have been buyers who were looking to purchase vacation homes as travel remained suppressed at that time. Investors may have been drawn to the market as they saw rents increase for tenants. Others may have viewed the property for both purposes: a vacation home that could be rented as a short-term vacation rental when not in personal use.

Unfortunately, the share of first-time buyers remains suppressed at just 29% last month. While it is not the high seen during the First-time Home Buyer Tax Credit in 2010, it is also not the historical norm of 40% seen in the annual Profile of Home Buyers and Sellers report. Notably, during the timeframe of the First-time Home Buyer Tax Credit, there was significantly more inventory than seen today.

To read more on the monthly Realtors Confidence Index, check out the full report the same day Existing-Home Sales is released.

Want to learn more about what to expect when it comes to the future of the housing market? This article offers a preview of our upcoming HousingWire Annual Housing Market Super Session that will feature an all-star panel of housing experts. Join us in Scottsdale, Arizona Oct. 3-5 to attend this super session that is designed to help attendees understand macroeconomic data and housing trends for the next year and beyond. To register for HW Annual, go here.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the author responsible for this story:
Jessica Lautz at [email protected]

To contact the editor responsible for this story:
Brena Nath at [email protected]

Continue Reading

Real Estate News

Real estate: 5 ways to invest

Avatar photo

Published

on

For most people, the term real estate has a limited number of meanings. They tend to hear the words and think of either a private home or a piece of commercial property. But there’s much more to the concept than those two classic examples.

The computer age has given rise to an entirely new paradigm of real estate that includes an intangible asset known as digital properties. Other popular ways to invest in the broad real estate segment include income-producing rental homes, REITs (real estate investment trusts), fixer-uppers, and office condos.

The modern face of the market is both exciting and potentially lucrative for investors who prefer to park their capital in assets other than old-fashioned stocks and bonds. Here are the relevant details about the top five ways people will invest in real estate in the 2020s.

Like what you’re reading? Subscribe to our newsletters here and have the Racine County Eye media team’s stellar reporting sent straight to your inbox.

Digitalproperties

Virtual property within the metaverse, the internet-based VR (virtual reality) world, is one of the newest assets. Those who scoff at digital real estate should regularly consider that many millions of dollars trade hands between sellers and buyers. In the real world, one principal Miami-based real estate broker offers all customers digital replicas of any tangible asset they purchase. For prospective investors, the profits are uncertain but potentially huge.

Consider that just a few years ago, digital properties sold for tiny sums but now go for several thousand dollars each. Several reputable real estate brokers and companies are exploring the digital real estate segment, and the concept is gaining wide social acceptance among serious investors. Anyone who owns real estate should look closer at adding one or more digital assets to their portfolios.

Vacation rental homes

Rental homes offer two benefits for the price of one. First, owners can purchase one in a distant city of their choosing, not to mention earn regular income. When they want to go on vacation, they can take the home off the rental market and stay in it for as long as they wish without paying for pricey hotels or someone else’s rental property. Other owners use holiday city rental houses as steady, long-term income streams to earn top dollar for peak seasons but then move into the homes after retiring.

REITs (Real Estate Investment Trusts)

Affordable shares of real estate assets are what REITs are all about. Not long ago, anyone who wanted to earn income from property ownership had to invest significant capital, deal with complicated legal documents, and take on outsized risks. With REITs, anyone can purchase tiny amounts of carefully vetted properties and avoid all the headaches of actual ownership, like landlord duties and hefty initial investments.

Fixer uppers

For at least 30 years, there’s been an active flipping market in the sector. It’s comprised of buyers who seek fixer-upper houses, renovate them, and quickly place them back on the open market for sale. Flippers operate on the principle of combining sweat equity with short-term speculation to earn a potentially positive return on every worthy fixer-upper they acquire. Initial expenses include the property itself, along with renovation work. Pursuing a side job as a house flipper can offer a steady, significant income for those with the money, time, and energy.

Office condos

Investing in office condos is a relatively easy way to get into the market as a financial backer. Some condos, most of which are located in strip malls and small commercial buildings, cost less than residential homes and require much less renovation. People who like working on the fringe of commercial real estate can begin by acquiring a single office condo, fixing it up, furnishing it, and then selling it to a willing buyer.

real estate

The Racine County Eye, which includes the Kenosha Lens, has your local real estate coverage to serve our diverse communities. Subscribe today to stay up-to-date with local news.

Follow us on Facebook: Racine County Eye or Kenosha Lens, and Twitter to make sure you get the latest news.

Continue Reading
Advertisement

Trending