Who remembers when rates were over 17% ?

Most Popular Reply

Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
3y

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).

10Reply
See this reply in the discussion

53 Replies

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

     Yuppers. 

    So, next time someone says R.E. is going to "crash" because of interest rates, yeah, keep this in mind for how to respond. 

    0Reply
  • 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:
    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!


     Co-living PM, or Rooming-House as it's known in some places, that's dangerous waters I have never dared dip my toes into. The liability exposure is terrifying. Especially in this day and age of lunatics being what it is, with self-accountability at all time lows. 

    My opinion is it's a lawsuit-mill. Absolutely viable on the individual occupant/operator side, but how one scales it to market and regional level, that's where I think the wheels fall off. 

    Have you found a "secret-sauce" to mitigate that? 

    The core liability exposure is they are persons, in a shared habitat space, that you the PMC have put together via authorization actions. Thus exposing one-self to liability potentials from bad things happening, including assorted forms of tenant assaults. 

    I watch a market that was very heavy on rooming houses, that now has a fail rate around the 80 percentile range. People are just not any good at interacting with other people anymore. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free