Warning - Risks of Interest Rates Rising When Investing in Real Estate
Manage episode 437139767 series 3360982
There's a risk to just about everything in life... including investing in real estate.
One risk that some real estate investors fear is that rising mortgage interest rates will:
- Increase their mortgage payment and therefore hurt cash flow, or
- The rising mortgage interest rates will lower affordability and demand for properties, and therefore the value of properties they own will decline.
In this class, James will discuss the risk of investing in real estate and having mortgage interest rates rise, and how to mitigate or completely eliminate the risk.
Topics covered in this class include:
- Historical perspective on mortgage interest rates
- The challenge with Recency Bias for real estate investors
- Current mortgages at various interest rates
- The Mortgage Interest Rate Confidence Meter™ and how likely it is that you'll be able to get a certain interest rate
- The two big fears around rising mortgage interest rates for real estate investors
- How to completely avoid the impact of interest rates on your cash flow
- Why balloons are for clowns and not real estate investors
- What to do about buying more properties in a high property price, high mortgage interest rate, and lagging rent environment
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
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131 episodes