News

Landmark Links July 26th – Nip and Tuck

  Lead Story… Home renovations, which are already near record highs, are projected to accelerate over the coming year according to a new report by the Harvard Joint Center For Housing titled Above Average Gains in Home Renovation and Repair Spending Expected to Continue.  The study estimates that growth in the home improvement and repair space will reach […]

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Landmark Links -July 22nd – On the Sidelines

  Lead Story… CNBC posted a Bankrate.com study this week which found that more Americans prefer cash to stocks or real estate as a means of investment for money they don’t need for 10 years or more.  In other words, a somewhat shocking 54 million American’s are embracing a zero-risk, zero return mentality.  The most troubling finding was […]

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Landmark Links July 19th – One Size Fits All?

  Lead Story…. Nobel Laureate Robert Shiller wrote a piece in the NY Times this weekend titled: Why Land and Homes Actually Tend to Be Disappointing Investments that caught my eye.  In the article, Professor Shiller discusses both farmland and residential land and makes a case they are both subpar investments over time (highlights are mine): Over the […]

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Landmark Links July 15th – Proceeding with Caution

  Last Tuesday, I was sitting in a hospital room with a somewhat-drugged-up Mrs. Links just after baby Hayden was born when I read an article about a new video game that had just been released. That game was just beginning to become a phenomenon like nothing I had ever seen.  I remarked to Mrs. […]

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Landmark Links July 12th – We Know Nothing

  Lead Story….  There is an old investment joke about Albert Einstein going to heaven that goes like this: Einstein dies and goes to heaven only to be informed that his room is not yet ready. “I hope you will not mind waiting in a dormitory. We are very sorry, but it’s the best we […]

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Landmark Links July 8th – The Plunge

  First things first: Hayden Charlotte Deermount was born at 11:14am on July 5th weighing 7lbs and 13 oz. Baby Hayden and Mrs Links are both doing great! This is also Hayden’s fist blog post in a way since I wrote almost the entire thing with her sleeping on my lap…. Lead Story… Commercial real […]

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Tank Commander

We spend a lot of time talking about the San Francisco housing market, and rightfully so: it’s a microcosm of all that is wrong with restrictive zoning in closed-access US cities and the poster child for NIMBY obstructionism. As such, San Francisco has managed to overshadow another North American market that is incredibly expensive and getting worse: […]

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HUD needs to take a new look at the FHA limits in Southern California

A key headwind in many parts of the Inland Empire, especially those cities near the border of the Coastal Counties (Orange, LA and SD) is the low SFR FHA limit. Currently, the FHA limit in Orange County is $625,500 while the FHA limit in Riverside County is $356,500, or 43% lower. As prices have escalated […]

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Spread…And More Spread, Please

One topic we discuss internally quite a bit is the idea of “reasonable” return expectations for value-add and opportunistic real estate investments.  Looking back to the days of 10.0% cap rates and the risk free rate averaging north of 5.0%, the aforementioned return profiles were driven by the infamous 20.0% IRR and 2.0 multiple test. […]

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Landmark Links July 5th – Oh Baby

  Quick Programming Note: Expect a much shorter blog this week and possibly next as well. I’m about to drive to the hospital with Mrs. Links to do our part in contributing to the economic tailwind known as positive demographics.  This will be our second little girl and since the first one I’ve become acutely aware that my […]

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