“Rental Utopia” Startup Secures $350 Million Investment Andreessen Horowitz

[image] Dear Friend, I just received a message from one of our pros here at Ask The Pros, Jeff Zananiri and I wanted to send it your way as fast as I could! This is urgent! Here’s Jeff: Last week’s release of new housing data was bleak… Building permits were down 1.3% and housing starts declined 9.6% in July from June – a steeper drop than anticipated by economists. Then the National Association of Homebuilders/Wells Fargo Housing Market Index experienced its eighth consecutive month of decline. In fact, the 6-point drop in August brought the index to 49 – falling below the key break-even measure of 50 . NAHB Chief Economist, Robert Dietz, has baldly stated that he believes we’re in a housing recession brought on by “tighter monetary policy from the Federal Reserve and persistently elevated construction costs.” Less new single-family homes on the market plus rising mortgage rates means potential home buyers are often forced to re-envision themselves as renters. (You can get my [full analysis on the U.S. housing crisis right here]().) Adam Neumann, of WeWork fame (some would say, [infamy]()) sees the writing on the wall. The Israeli serial entrepreneur has managed to secure $350 million from venture capital firm Andreessen Horowitz (aka a16z) for a new startup called simply “Flow”. This is the largest investment ever for the VC firm. Marc Andreessen, cofounder of a16z, explained the reasoning… “Adam is a visionary leader who revolutionized the second largest asset class in the world – commercial real estate – by bringing community and brand to an industry in which neither existed before… We think it is natural that for his first venture since WeWork, Adam returns to the theme of connecting people through transforming their physical spaces and building communities where people spend the most time: their homes… Residential real estate – the world's largest asset class – is ready for exactly this change." The details about Flow are vague, as yet… as its [elemental website]( reflects: [image] Don’t bother clicking that “Join Us” button. It prompts you to enter your email for more information. I tried – repeatedly – and got nothing at all. Here’s what is known so far… Neumann plans to offer branded rental-housing experiences – plus services to outside developers. The idea behind the brand seems to be focused on community living for remote workers… a sort of work-from-home utopia for renters. Neumann’s last residential living venture, a kind of dorm set up for adults called WeLive, [failed miserably]() (it’s no wonder he left the “We” off the company name this time around). But with the confidence and money provided by a16z, he’s already bought over 3,000 apartment units in Miami, Fort Lauderdale, Nashville and Atlanta. I’ll be watching to see how things pan out. Neumann's latest venture may be short on info at this point, but the underlying premise behind the investment is one I agree with: The United States is becoming a "[Landlord Nation]()". Some of my favorite investments right now are looking to take advantage of that trend. Who knows, maybe I’ll even get an email back from Flow. I’ll let you know if/when I do. - Jeff Zananiri Thanks for reading our message from pro trader: Jeff Zananiri! I encourage you to take what he said to heart and consider taking action! See you Friday! Happy Trading, Celeste Lindman Ask The Pros RISK DISCLAIMER There is a very high degree of risk involved in trading. Ask The Pros and all individuals affiliated with this site assume no responsibility for your trading results. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. [Unsubscribe]( DTI Trader 1555 University Blvd S Mobile, Alabama 36609 United States (251) 652-1555