Interest Rates & Real Estate
I think investors spend way too much time asking:
“Where are interest rates going?”
And not enough time asking:
“Does this deal work at today's rate?”
Obviously, financing costs matter.
But I believe waiting for the “perfect” interest rate can sometimes cause investors to miss opportunities.
On the other hand, I'm also not a fan of forcing a deal just because you found a property you love.
Real estate isn't a dating app. LOL
You don't have to swipe right on every property.
I'd rather see investors understand:
• Cash flow
• Debt service
• Loan terms
• LTV
• Reserves
• Exit strategy
• Refinance possibilities
Then make the decision based on the actual numbers.
Rates can change.
Your purchase price is your purchase price.
I think buying correctly is often more important than trying to perfectly time the market.
How are interest rates affecting the deals you're looking at right now?