Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Yesterday was a big one for mortgage rates. We didn’t just get official inflation data, but we had a Fed meeting (think: rate announcement & Jerome Powell press conference). It was like the economic Super Bowl.

The Consumer Price Index (inflation) came in below expectations, which helped bring down rates.

But the reviews were more mixed on the Fed’s decision. While they kept rates unchanged, comments about only one rate cut this year didn’t do rates any favors.

THE LEAD

Alternative realty

I don’t know who needs to hear this, but traditional real estate investing isn’t for everyone.

Luckily, it’s the year of our lord 2024 and a little invention called the internet has made it possible to get exposure to real estate even if you don’t have a trust fund and/or an uncle who works at Starwood Capital.

There are plenty of alternative routes (read: not buying property directly) to get in the game. Like…

Alternative investment platforms

Yes, these are those platforms you see all over social media. And, no, not all of them are sketchy. Apps like Fundrise and Yieldstreet give you the opportunity to invest in real estate deals and funds for as little as $10.

You can get access to rental income and appreciation… without all the headaches of property management.

Real estate crowdfunding platforms

Before you go all “crOwDfUNdINg iS A sCAm!” keep in mind that Jeff Bezos (yes, that Jeff Bezos) recently invested in Arrived. Arrived lets you invest alongside thousands of others in single-family rentals, vacation home rentals, and a bunch of other real estate investments.

Syndication

Think of syndicates like the big leagues of crowdfunding. Getting a seat at the adult’s table will probably cost you more and require some connections as they are typically run by real estate professionals or investors.

But, what you give up in ease of use (read: downloading an app), you could make up for in quality of deals.

REITs/ETFs

Probably the most liquid investment on the list. You can invest alongside the masters of the universe just by putting your money to work in a publicly traded real estate investment trust or an ETF that holds REITs.

BONUS: there are plenty of other publicly traded real estate “pick and shovel” opportunities. Think: Zillow and Redfin.

💭 Mr. Pocket Listing says… It’s all in the fine print with these sorts of things. Yes, a property might be illiquid, but some of the investment vehicles above can be too. They face long lockup periods and early withdrawal penalties. And it makes sense, they’re facing the same economics as anyone in the real estate investing game.

Transparency can be a pitfall too. There have been a number of notable scams and examples of terrible decision-making, in the crowdfunding and syndication spaces.

Publicly traded REITs and ETFs come with some level of supervision from the SEC and other regulators. Of course, that won’t save you from sh*tty investing strategies by the “smartest guys in the room.”

My point? As always… keep your head on a swivel. Every investment is risky.

WHAT ELSE?

More headlines I’m keeping an eye on…

• What you’ll pay in every U.S. state in hidden homeownership costs: It’s like ‘buying a used car every year’ (Read)

• Buying a house of ‘Home Alone’ or John Lennon fame? There’s a premium for that (Read)

• I’m an Economist: Here Are My Predictions for the Housing Market If Biden Wins Again (Read)

• Apartment stocks topping most other REITs sectors as tough housing market spurs demand for rentals (Read)

• What to expect from the housing market in the second half of 2024, according to real estate experts (Read)

• Inventory up 1.1% Week-over-week, Up 37.8% Year-over-year (Read)

• Nearly 9 in 10 People Say It’s a Bad Time To Buy a House. ‘Consumers Struggle To Find the Positives,’ Economist Says (Read)

• Mortgage rates at 3% were an ‘anomaly.’ Here’s what a normal 30-year rate looks like. (Read)

Let’s get tactical…

• What It Takes for Investors to Build a Powerful Lead List and Keep Deals Flowing (Read)

• This is when you can expect mortgage rates to go down — and why you should buy before a recession hits (Read)

• The 5 Most Expensive Investment Property Losses—Plus Damage Estimates and Mitigation Tips (Read)

• A majority of homebuyers aren’t shopping around for a mortgage, yet those who do get better rates (Read)

• You Are Prone to Errors—Avoid These 5 Scientifically Proven Mental Traps When Making Investment Decisions (Read)

• I own a rental property with a 2.6% interest rate fixed for 10 years, but I live in another state. Should I sell it? (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) Pittsburgh, PA made the list // Why Boomers Are Expected To Sell Their Homes in These 5 Cities (Read)

(2) Burlington, VT came in at #2 // 15 Affordable, Promising Cities To Buy Real Estate in 2024 (Read)

(3) Boulder, CO is on the list // Top 10 U.S. Metros with Highest Down Payment Percentage for Home Purchases (Read)

SURVEYING

Last week, I asked, “Is cash king?”

48% of you said, “Depends on the deal.” While 32% of you responded “Yes.”

Here’s today’s question…

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One last thing…