5% Dividend Yield From Postal Office Real Estate: Postal Realty (NYSE:PSTL)

Postal Realty Trust (PSTL) is an internally managed real estate investment trust (‘REIT’) that owns properties leased to the United States Postal Service (‘USPS’). The fragmented state of USPS properties makes PSTL an unlikely growth story with a hefty 5% dividend yield as a starting point. While the tenant concentration is a potential cause for concern, PSTL appears to be a worthy addition to any dividend growth portfolio.

Postal Office Real Estate

For those who are unfamiliar with postal office real estate, the USPS is a government entity whereas the underlying USPS properties are often privately owned. PSTL owns 666 such properties spread across 47 states, with a heavy concentration everywhere except the West coast:

(2020 Investor Presentation)

While it is tempting to put PSTL in the same league as triple net lease (‘NNN’) operators such as Realty Income (O), there are important distinctions to make. Typical NNN REITs like

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Real Estate Commission Lawsuit Continues. Are Agent Commissions at Risk?

Within the real estate industry, commission is one of the most hotly debated topics. Real estate is one of the few remaining industries that is primarily commission-based. While real estate agent commissions are always negotiable, most commissions tend to fall within the 5% to 6% range. This commission is traditionally split between the buyer’s agent and seller’s agent but paid by the seller out of the sale of the home.

A lawsuit that takes aim at that concept recently received approval to proceed from a federal judge in Illinois, the home of the National Association of Realtors (NAR). Moehrl v. National Association of Realtors et al. is a lawsuit that could become a potential class action in Illinois. It alleges commission splits and multiple listing service (MLS) organizations are inherently anticompetitive.

The suit was filed on behalf of home sellers who paid a commission within the last four years. It

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Here’s Why a Rally in Real Estate ETFs is Likely Ahead

The U.S. homebuilding sector is on fire. Thanks to extremely low mortgage rates, home sales are upbeat. But higher demand for home buying as well as lack of labor and land has boosted home prices. The median home sale price rose 15% year over year to $320,625 — the highest on record, according to a new report from the technology-powered real estate brokerage Redfin. The largest increase ever recorded in the Case-Shiller national home price index (which goes back through 1988) was 14.5% in September 2005.

Inside the Details of Rising Home Prices

In the week ending Oct 4, home prices shot up 16% from the same week a year earlier. Since the four-week period ending Jul 5, home prices have grown 6.8%. On the contrary, over that same period in 2018 and 2019, prices dropped an average of 4.4%. During the four-week period ending Oct 4, the median asking

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Your Daily Digest for Real Estate Investing, 10/13/2020

Mortgage woes mount, politics and CRE, Welltower departure rattles, three REITs that could roll, and a commission lawsuit that could roil.

In Today’s News

Late-Stage Delinquencies Spike to Highest Levels Since 1999

CoreLogic (NYSE: CLGX) reported today that despite acceleration in home purchase demand, America’s serious delinquency rate continues to climb, with employment woes much to blame for 120-day delinquencies hitting a 21-year high.

Why it matters: Three months behind on a house payment is on the path to foreclosure unless something turns around, and that may not be the job market for millions of Americans this far behind or potentially on the way there.

What a Democratic Sweep Might Mean for CRE

Read this GlobeSt.com piece for their whole story, but here’s a news nugget: Historically, CRE has performed well under both Democratic and Republican administrations, with average annual returns of 10.3% and 8.1%, respectively, since 1978.

Why it

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Real Estate Commissions Are Too High And Brokerages Can Help

COO & Co-Founder of Radius Agent, a social network and lead conversion engine for Residential Realtors.

If you’ve followed the real estate industry for any amount of time, you’ve probably been involved in the perennial debate about the high agent commissions in the U.S. The issue reached a fevered pitch last year when a lawsuit was brought against the National Association of Realtors, calling commissions the results of collusion. 

A common argument for lowering them claims U.S. commissions are among the highest in the world, but technology means agents don’t find homes for buyers anymore. They just unlock the door and fill out paperwork, and lots of agents don’t even do this full-time.

The common denominator in this debate is always the agent. Critics say they earn too much and do too little. But rarely is the brokerage relationship addressed. Commission splits to the brokerage can often be

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5 Ways Black Real Estate Investors Can Increase Returns As Business Shows Little Progress in Boosting Diversity

Real estate investing has long been a proven approach to helping individuals become their own bosses, build wealth, and achieve financial independence.

In fact, an immense 90% of millionaires reportedly made their fortunes by investing in that asset class.

But little progress has been achieved in the Black real estate investing community, with investors continuing to experience a lack of diversity and overall opportunities afforded to them, a new study by Millionacres shows. A Motley Fool firm, Millionacres is a real estate investment service.

In August, Millionacres surveyed more than 650 people about diversity in the real estate investing world. Five percent of the respondents identified as Black or African American. The real estate world encompasses  many categories, including rental properties, real estate crowdfunding, commercial real estate, real estate stocks, REITs (real estate investment trusts), flipping houses, and second or vacation homes to name a few.

Among the most startling

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Option to Buy in Commercial Real Estate

If a potential buyer is seriously weighing whether or not to move forward with a transaction, and the seller thinks they’ll be able to raise capital and close, the option to buy may come into play. It’s a way for a seller to allow a buyer the necessary time to do their due diligence and secure financing without having to worry that another interested party will come in and muddy the waters.

An option to buy is like an engagement to be married. Enter one only after thinking it through very carefully. You can’t legally get married to more than one person at a time, just like you can’t sell a piece of property to two different entities simultaneously. The option to buy is where you “put a ring on it”; maybe you’re not finalizing a contract, but you’re heading down that road. Nobody gets to that point without thinking

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Despite Recent Challenges, The Real Estate Crowdfunding Industry’s Future Is Bright

Adam oversees ArborCrowd’s corporate growth strategies including business development, digital technology and sales initiatives.

2020 is shaping up to be a year that most people will want to forget. It has been particularly challenging for the nascent real estate crowdfunding industry, which — like many others — has been affected by Covid-19. This resulted in diminished deal flow, layoffs and suspensions of share redemptions. In June, we also saw the collapse of an early and significant player in the space as they faced lawsuits from investors due to failed investments.

In times such as these, it’s natural to question, what will be the future of the industry? In my opinion, the answer to this question is the future is very bright. However, the last few months have reinforced that the industry needs change to protect itself and investors.

I’ve long stated that the real estate crowdfunding industry would

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Buying or Selling Landlocked Property in Real Estate

Landlocked property may seem like a major problem to a novice real estate investor, but it’s actually a rather common issue that in many cases can be resolved. Landlocked property definitely comes with its own set of challenges, but it’s not necessarily a deal breaker when it comes to buying, selling, or developing real estate.

If you’re looking at purchasing a landlocked parcel or you’re a landlocked owner, get a better understanding of what landlocked property is, common issues associated with this type of real property, and ways to overcome the common challenges that come with landlocked property.

What is landlocked property?

Landlocked property is a piece of land or real estate property that does not have public access to it. The property can only be accessed by passing through the neighboring property. Landlocked property is most commonly created when a prior owner subdivides a large parcel of land into

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Tips for Real Estate Agent Safety

At first blush, a real estate agent’s job isn’t synonymous with danger. But according to the 2020 REALTOR Safety Survey, 5% of agents have been a victim of crime and ⅓ have felt fear while at work. COVID-19 hasn’t helped, either, adding community health concerns to the mix as well.

To combat crime and violence and to remind real estate professionals to be vigilant of their personal safety, NAR has designated September as REALTOR Safety Month. Here are some tips:

Safety at open houses

NAR recommends the buddy system when hosting open houses. But if agents or investors must show an open house alone, it pays to be alert of one’s surroundings.

“If I’m doing an open house in a vacant house and I feel uncomfortable, I will stand outside [to greet clients],” says Joanne Costa, Broker/Owner of Joanne Costa Realty in Staten Island, NY. Keys are always kept in

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