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Real Estate Investing Lite

Real Estate Investing Lite
July 28, 2022

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I quickly survey my friend group to see what the housing crunch looks like in real terms. Some of us are waiting for the market to cool before purchasing. Some of us just pulled some retirement savings to buy a home in a newly hot market in our hometown, months before Baby #1 arrives. Some of us are attempting to reimagine the American Dream of homeownership and book travel instead. 

 

With a housing crunch that has raised prices in places from Tuscaloosa, Alabama to Miami, Florida, home ownership is harder than ever. For anyone who sought home ownership as an investment opportunity, the stakes are getting higher with yet another Fed rate hike announced yesterday.

 

Enter mini-mogul investing
Companies are buying up single-family homes and selling the properties in fractions, sometimes with as little as $100 in investment cash. Amazon’s entrant, Arrived Homes, had been on a buying spree across the county. With the $160MM the company has raised from Bezos’ investment arm asd well as investors like Uber’s CEO and Salesforce billionaire Marc Benioff. The company's stated aim is to provide rental investment opportunities to the little guys. However, it’s the even littler guys who may be paying the price.

 

The 251 Person Landlord
So now potential homeowners must compete with institutional investors who can close quickly and in cash, but how good of a landlord a faceless investor can be is still an open question. According to the aptly named article “Bezos’ Latest Project Could Be a Pain in the Ass for Renters,” managing an investment property with a 10-foot pole might have negative consequences for tenants.

I, for one, appreciate that I can reach out to my landlord, Jeff, via text or email to let him know if the AC gives out or if the screen door becomes unhinged. The bright side of renting is having the maintenance responsibility off my plate, as my recent homeowner friends can attest. Jeff is using my rent as a stream of investment income, but at least he looked me in the eye when we signed our lease agreement.

Spirit's Merger Cancelled
After numerous delays, shareholders are checking out of deal.
[CNBC]
Meta posts first decline...ever
The company lost 1MM daily active users
[Axios]

 
Since last week, PrivCo has added:
1,386 Companies | 203 Funding Activities | 179 M&A Deals

Funding & Deal Highlights:
 

Reserv raises $8MM from Altai Ventures

SaaS • Seed • New York, NY
 

Neon raises $30MM from GGV Capital

Cloud • Round A • San Francisco, CA
 

Kona raises $4MM from Unusual Ventures

SaaS • Seed • San Francisco, CA
 

Nash raises $25MM from Andreessen Horowitz

Software • Round A • San Francisco, CA
 

Unstoppable Domains raises $65MM from Pantera

Blockchain • Round A • Las Vegas, NV
 

Seedtag raises €250MM from Advent International

AdTech • Equity • Madrid, Spain
 

Drover raises $5.4MM from Vektor Partners

Software • Round A • Los Angeles, CA 
 

Enko raises $70MM from Nufarm

AgTech • Round C • Nufarm
 

Elation Health raises $50MM from Ascension Ventures

Healthcare • Round D • San Francisco, CA
 

Bridgene raises $38.5MM from Lapam

Biotechnology • Round B • San Jose, CA
 

Dynamo announces acquisition of Smonik 

Consulting • Acquisition • Needham Heights. MA
 

Atlantic Southern announces acquisition of Massey

Construction • Acquisition • Trussville, AL

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