Consistent Economic Decision-Making

Unveiling the Market's Secrets from Behind the Scenes

Author

Nuvo Capital
May 30, 2024

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“We’re always going to do what we think the right thing for the economy is when we come to that consensus view [...]. That’s our record. That’s what we do. We’re not looking at anything else. You know, it’s hard enough to get the economics right here. These are difficult things, and if we were to take on a whole, another, set of factors and use that as a new filter, it would reduce the likelihood we’d actually get the economics right. So that’s how we think about it around here. We’re at peace over it. We know that we’ll do what we think is the right thing.”

-Jerome Powell, Chair, Board of Governors at Federal Reserve

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question: 

When it comes to property insurance for multifamily assets, how do you tailor coverage to mitigate risks specific to the property, and what considerations are crucial in selecting insurance providers?

Answer: 

Tailoring property insurance for multifamily assets involves a strategic approach to mitigate specific risks and protect the property adequately. Considerations include assessing the property's location, potential natural hazards, and building characteristics. Coverage should encompass property damage, liability, and loss of rental income. Crucial considerations when selecting insurance providers include their financial stability, reputation, responsiveness to claims, and the ability to customize policies to the unique needs of multifamily properties. Engage in thorough due diligence, obtain multiple quotes, and choose an insurer with a track record of reliability and flexibility in meeting the distinct insurance requirements of multifamily assets.

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Working With Latin American Family Offices w/ Erik Halvorssen

In this episode, Erik, the head of private banking at Klosters Capital, dives into the unique financial landscape of Latin America compared to the US and Europe. He highlights the distinct challenges faced by Latin American clients, including privacy concerns and risks like extortion and kidnapping, and explains how Klosters Capital navigates these issues.

Quiz of The Week

What is a "Tenant Improvement (TI) Allowance"?

a. A fee paid to the property management company

b. A budget for property repairs and maintenance

c. Funds allocated for customizing leased space

ǝɔɐds pǝsɐǝʅ ɓuᴉzᴉɯoʇsnɔ ɹoɟ pǝʇɐɔoʅʅɐ spunꓞ ·ɔ

Random Tip of the Week

🕰️ Consider Market Timing - Be mindful of market cycles when making asset management decisions. During periods of strong demand and appreciation, it might be an opportune time to sell or refinance for maximum returns. Conversely, in softer markets, focusing on maintaining occupancy and managing expenses could be more crucial to weather downturns effectively.

Current Rates (Weekly Update)

10-Year Treasury - 4.54% (⬆️.13%)

Fed Funds Rate - 5.33% (0%)

1-Month Term SOFR - 5.32% (0%)

About Nuvo Capital Partners

Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.

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