Who remembers when rates were over 17% ?

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Who remembers when rates were over 17% ?

Grant ShipmanPro Member

Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes

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Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

Nominal housing prices have doubled in the past ten years. Inflation adjusted prices are 100% higher than in the 1970s. Government debt is off the charts. Interest rates matter...a lot. The mortgage rate chart in isolation is not relevant without the other side of the equation...price (and related debt level).

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James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Grant Shipman:

I feel like this is just a different way of asking how many of us are Grandparents, lol.

Yes, I'm a Grandparent and yes, I not only remember those rates but I remember when people would high-5 because they got locked in at 14%.

As @Jay Hinrichs pointed out, the sky didn't fall, it wasn't the apocalypse, and I might remind that at same time there was nuclear attack drills at all schools because same time we were knee deep into the cold war. But for some reason the younger folks like to think life will come to an end if rates go "as high as" 9%.

We rolled up our sleeves, put on our thinking cap's, and focused on solutions, not the problems. It's just that simple.

Early/Mid 80's was "the" age of creative financing and deal structure.

So no surprise when all this started happening my knee-jerk reaction was "ah, I know this tune" and I started pivoting to those actions and strategies. And yeah, a bit comical the kids today taking ownership for "inventing" these strategies, lol.
2 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
3y
Quote from @Luka Milicevic:

I wasn't alive back then, but I saw old newspaper clippings on CDs and I feel like the smartest investment back then was just to park your money in the bank, in CDs and in US T bills. You were making double digit returns with "zero" risk.
Exactly. RE or any investment with risk needs to be compared against risk-free returns. I have a hard time now looking for RE because I can earn 4% with no effort.
Here are bank savings and CD rates from July 1976 bicentennial:

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Jay Hurst:

Quote from @Grant Shipman:

I saw a recent survey that 60%~ of potential buyers thought that today's interest rates were unprecedently high! As in rates have never been this high. We have such short term memories. The last 10 years have been the anomaly, not todays rates.

I started selling RE in 1975 and worked at buying and selling real estate exclusively till about 1990 so as you can see we worked through the worst of it.
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Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
3y
@Grant Shipman
Yes, I was young so I did not have that rate,but my parents did. I do remember car rates in the 8 to 9% range in the 90's.
1 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
3y
Quote from @Steve Vaughan:

Quote from @Luka Milicevic:

I wasn't alive back then, but I saw old newspaper clippings on CDs and I feel like the smartest investment back then was just to park your money in the bank, in CDs and in US T bills. You were making double digit returns with "zero" risk.
Exactly. RE or any investment with risk needs to be compared against risk-free returns. I have a hard time now looking for RE because I can earn 4% with no effort.
Here are bank savings and CD rates from July 1976 bicentennial:

This is almost exactly the same look I was talking about! The one I saw was from a newspaper that was from the 80s when rates were even higher. I remember seeing 12% rates on "risk free" investments. I mean!!!! Why would you invest in anything if you can get 12% with near zero risk.
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Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @Jay Hinrichs:

I worked in that environment as a broker investor etc.
what it did was force us into creative financing.. we debuted our Zero % financing model that model we killed it with.
We created a company that did nothing but sub too wraps and those we killed it with it was many years before we dealt with banks again.
all owner finance creative finance ..
And now today you see the new generation that was not even born yet coming out with the same ideas and thinking they invented it LOL

Very cool to read- I'd love to hear any more specific stories or what it was like for you during this time. I was doing Coliving Property Management at this time but was not in the investor sphere yet.
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Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @James Hamling:

Quote from @Grant Shipman:

I feel like this is just a different way of asking how many of us are Grandparents, lol.

Yes, I'm a Grandparent and yes, I not only remember those rates but I remember when people would high-5 because they got locked in at 14%.

As @Jay Hinrichs pointed out, the sky didn't fall, it wasn't the apocalypse, and I might remind that at same time there was nuclear attack drills at all schools because same time we were knee deep into the cold war. But for some reason the younger folks like to think life will come to an end if rates go "as high as" 9%.

We rolled up our sleeves, put on our thinking cap's, and focused on solutions, not the problems. It's just that simple.

Early/Mid 80's was "the" age of creative financing and deal structure.

So no surprise when all this started happening my knee-jerk reaction was "ah, I know this tune" and I started pivoting to those actions and strategies. And yeah, a bit comical the kids today taking ownership for "inventing" these strategies, lol.
you've got a tremendous logo! Do you GM your whole staff or what is your role w/the company?
5 Reply
Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @Curtis Mears:

@Grant Shipman
Yes, I was young so I did not have that rate,but my parents did. I do remember car rates in the 8 to 9% range in the 90's.

Are you doing any creative financing currently?
5 Reply
Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @Luka Milicevic:

Quote from @Steve Vaughan:

Quote from @Luka Milicevic:

I wasn't alive back then, but I saw old newspaper clippings on CDs and I feel like the smartest investment back then was just to park your money in the bank, in CDs and in US T bills. You were making double digit returns with "zero" risk.
Exactly. RE or any investment with risk needs to be compared against risk-free returns. I have a hard time now looking for RE because I can earn 4% with no effort.
Here are bank savings and CD rates from July 1976 bicentennial:

This is almost exactly the same look I was talking about! The one I saw was from a newspaper that was from the 80s when rates were even higher. I remember seeing 12% rates on "risk free" investments. I mean!!!! Why would you invest in anything if you can get 12% with near zero risk.

How cool that you have a newspaper clipping?! What actions have you decided to do w/the current rates? Have you bought more/less or pivoted?
5 Reply
Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
3y
Quote from @Grant Shipman:

Quote from @Curtis Mears:

@Grant Shipman
Yes, I was young so I did not have that rate,but my parents did. I do remember car rates in the 8 to 9% range in the 90's.

Are you doing any creative financing currently?
No, I have not had any reason to.
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
3y
Remember 12%
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James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Grant Shipman:

Quote from @James Hamling:

Quote from @Grant Shipman:

I feel like this is just a different way of asking how many of us are Grandparents, lol.

Yes, I'm a Grandparent and yes, I not only remember those rates but I remember when people would high-5 because they got locked in at 14%.

As @Jay Hinrichs pointed out, the sky didn't fall, it wasn't the apocalypse, and I might remind that at same time there was nuclear attack drills at all schools because same time we were knee deep into the cold war. But for some reason the younger folks like to think life will come to an end if rates go "as high as" 9%.

We rolled up our sleeves, put on our thinking cap's, and focused on solutions, not the problems. It's just that simple.

Early/Mid 80's was "the" age of creative financing and deal structure.

So no surprise when all this started happening my knee-jerk reaction was "ah, I know this tune" and I started pivoting to those actions and strategies. And yeah, a bit comical the kids today taking ownership for "inventing" these strategies, lol.
you've got a tremendous logo! Do you GM your whole staff or what is your role w/the company?

Were a NASDAQ listed company, staff management is currently segmented via various market centers (I think 48 today, maybe popped over 50 now).
My role, good question. It's a layer cake, lol. Simplest one said I am the #1 Producing agent in N.America by GCI. So there is that. I am a strategist and do market analysis, market forecasting, develop and deploy REI strategies. But my role w/the company is just "Rock star REI Realtor". All the other things are just the "how".
3 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Awww @James Hamling, you don't look like a Grandpa!!
2 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Bruce Woodruff:

Awww @James Hamling, you don't look like a Grandpa!!
Not just a genius of a man but apparently a heck of a nice guy too! I like you too buddy.
My oldest already retired airborne, 12Bravo All American. That's when my age really hit me. That and when the tv broke and I said "man, if we could just go buy some vacuum tubes" and kids looked at me like "wtf did Dad just say" lol.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @James Hamling:

Quote from @Bruce Woodruff:

Awww @James Hamling, you don't look like a Grandpa!!
Not just a genius of a man but apparently a heck of a nice guy too! I like you too buddy.
My oldest already retired airborne, 12Bravo All American. That's when my age really hit me. That and when the tv broke and I said "man, if we could just go buy some vacuum tubes" and kids looked at me like "wtf did Dad just say" lol.

Vacuum tubes? Dude....! Yer killin me, I even forgot about that. Remember when we'd take the tubes to the local drug store and test them in the machine?
Congrats on your boy! I have 2.....
2 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Bruce Woodruff:

Quote from @James Hamling:

Quote from @Bruce Woodruff:

Awww @James Hamling, you don't look like a Grandpa!!
Not just a genius of a man but apparently a heck of a nice guy too! I like you too buddy.
My oldest already retired airborne, 12Bravo All American. That's when my age really hit me. That and when the tv broke and I said "man, if we could just go buy some vacuum tubes" and kids looked at me like "wtf did Dad just say" lol.

Vacuum tubes? Dude....! Yer killin me, I even forgot about that. Remember when we'd take the tubes to the local drug store and test them in the machine?
Congrats on your boy! I have 2.....

OMG yes!
Look, I am just as bad as any other, I'd freak a bit without my pocket PC called a phone, but man-alive I really think things were so much better some of the old ways. Remember getting the whole hoop contraption to fix the tv picture because someone vacuumed too close to the tv when they turned it off and now the picture is all wonky? Lol.
Hey, how about this for dating us: When Saturday Night Live was funny! Lol.
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
rate is now 4.65% , why stuck in 1970s??
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @James Hamling:

Hey, how about this for dating us: When Saturday Night Live was funny! Lol.
Yeah, we used to have a SNL party every Sat night at 11. That was back when I stayed up that late 🤣
And yes they used to be hilarious, no comparison nowadays.....
3 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Carlos Ptriawan:

rate is now 4.65% , why stuck in 1970s??

Hey hey hey heyyyy...... Abba say's whatcya got against the 70's. Lol.
1 Reply
Barry Ruby
Developer · Boulder, CO · Member since 2018 · 530 posts · 365 votes
3y
@Grant Shipman I do. I was under construction of a 38 story mixed use project in downtown Seattle. Each floor took about a week to frame, pour and set. Interest rates climbed about a point a week and topped off at 17% or 18%.
The only reason the project and I survived is that I had a bank as my funding partner which allowed us to finish the project and successfully sell its 140 units.
Please don’t gripe and tell any sob stories over a 7% rate. It can and just might get worse.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Barry Ruby:

Please don’t gripe and tell any sob stories over a 7% rate. It can and just might get worse.
It sure might! What if it ends up at 17% again? What do y'all think will happen to today's market
1 Reply
Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @James Hamling:

Quote from @Grant Shipman:

Quote from @James Hamling:

Quote from @Grant Shipman:

I feel like this is just a different way of asking how many of us are Grandparents, lol.

Yes, I'm a Grandparent and yes, I not only remember those rates but I remember when people would high-5 because they got locked in at 14%.

As @Jay Hinrichs pointed out, the sky didn't fall, it wasn't the apocalypse, and I might remind that at same time there was nuclear attack drills at all schools because same time we were knee deep into the cold war. But for some reason the younger folks like to think life will come to an end if rates go "as high as" 9%.

We rolled up our sleeves, put on our thinking cap's, and focused on solutions, not the problems. It's just that simple.

Early/Mid 80's was "the" age of creative financing and deal structure.

So no surprise when all this started happening my knee-jerk reaction was "ah, I know this tune" and I started pivoting to those actions and strategies. And yeah, a bit comical the kids today taking ownership for "inventing" these strategies, lol.
you've got a tremendous logo! Do you GM your whole staff or what is your role w/the company?

Were a NASDAQ listed company, staff management is currently segmented via various market centers (I think 48 today, maybe popped over 50 now).
My role, good question. It's a layer cake, lol. Simplest one said I am the #1 Producing agent in N.America by GCI. So there is that. I am a strategist and do market analysis, market forecasting, develop and deploy REI strategies. But my role w/the company is just "Rock star REI Realtor". All the other things are just the "how".

wow you're a bad ***. it's an honor to meet you on these forums. I do and teach coliving property management where SFR's get 2.5x revenues with less damage and work than LTR or STRS. I'm also a geek when it comes to asset management and all that. The downside is I do not have the REI network or experience you do, so my company is growing and meeting the rising demand for coliving but nothing like it could. If you know anyone who wants to try what multimillion dollar start ups (HubHaus/Common/Ollie/etc) are trying but failing at b/c they have everything but the most essential ingredient to coliving, I'm all ears. Keep kicking *** James- again, great to meet you!
5 Reply
Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @Bruce Woodruff:

Quote from @James Hamling:

Hey, how about this for dating us: When Saturday Night Live was funny! Lol.
Yeah, we used to have a SNL party every Sat night at 11. That was back when I stayed up that late 🤣
And yes they used to be hilarious, no comparison nowadays.....

"Saturday night live is now a 90 minute lecture on the badness of humanity" ~Elon Musk
6 Reply
Grant ShipmanPro Member
OP
Rental Property Investor · Estes Park, CO · Member since 2017 · 282 posts · 1k+ votes
3y
Quote from @Carlos Ptriawan:

rate is now 4.65% , why stuck in 1970s??

my lender/broker is telling me 5.875%, I'd like to talk w/who you're talking with :)
7 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
axos bank has 4.25 lol
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