by Erich Beyer | Mar 20, 2023 | Philanthropy
Archangel Capital frequently gets calls asking for us to accept housing vouchers. We typically decline as we don’t want to invite additional legislative burdens and additional paperwork into our rental process. We also never have an issue renting our apartments, so its not necessary. Recently, we received a request from a single mom named “Jane”. She was staying in temporary housing that was about to end, had contacted every available apartment in the area and had run out of options – she and her child would be homeless by the end of the week. It just so happened that we had a newly vacant apartment, and we knew this woman to be trustworthy from multiple referral sources. We knew we had to help. She had received a housing voucher, and so we worked with the housing authority to get our apartment inspected and approved for her to move in. We publish this article not to pat ourselves on the back for a job well done, but call out the fact that when we say we are trying to improve the lives of people in our communities, we mean it.
by Erich Beyer | Jul 7, 2022 | Economy, Investing
I recently came across a pitch deck for a multi-family deal looking to exit in 5-7 years. The purchase cap rate of this specific deal was 4%. This is not unheard of and I fully predict this deal will be successful, however the exit cap rate was projected to be 4.5%. When I saw this, I could not help but think of a CBRE chart I saw recently that showed historic cap rates were, and how fast and far they have fallen from only a few years ago.
I do not claim to be able to see the future and know that cap rates will be higher than 4.5% in 5-7 years. I do however want to prepare myself and my company for cap rates back near the 6% mark where they were just a few short years ago. Especially given the markets volatility, inflation still out of control, and construction costs still at all-time highs, I believe the best course of action when looking at the future is to project nearly the worst-case scenario. Anything to the positive will be just that.
by Erich Beyer | Apr 10, 2022 | Economy
For years now, the inversion of the yield curve, whereby the yields on the 10-year treasury fall below that of the 2-year treasury, have been a signal for many as a coming recession. This happened in the mid 2000s as well as preceding the dot-com bust in the late 1990s. This happened this week, and many now worry about the possibility of a coming recession.
While there is no guarantee that this will result in a recession, and past performance is not indicative of future performance, it seems that this inversion is one more data point that indicates, economically speaking, we could be in for a difficult next couple of years.
by Erich Beyer | Mar 8, 2022 | Economy
The geopolitical events that are unfolding across the globe are not unprecedented, but we have not seen anything like this in over half a century. There are many factors at play in favor of recession, and I will touch on a few – inflation, oil, geopolitical uncertainty.
Inflation was a problem before this Russia/Ukraine war started. The covid-19 pandemic triggered massive production problems, and these were exacerbated many times over by supply chain issues and labor shortages. At the same time, people were traveling less and spending less, so when the government began sending out stimulus checks before passing the $1.75 trillion spending package, inflation ensued. Personally, I thought we had reached a peak of 7% inflation in December, but when inflation hit 7.5% in January I thought we were in for a recession. This was before Russia entered Ukraine and, as of today, the US banned imports of Russian oil. Oil prices have just hit an all time high, and we haven’t even seen the impact of losing oil imported from Russia. None of this accounts for the fact that the Federal Reserve will likely raise interest rates this month, and may continue to do so this and next year.
Extreme uncertainty, fear, and rapidly rising costs across almost every aspect of American life, have all the makings of the next great recession.
by Erich Beyer | Jan 1, 2021 | Investing
Our short term investment offering is a project based option that is tied directly to a specific deal. The return on our project based option is 10% APR.
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