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233. The State of The Multifamily Market & How We Got Here with JC Castillo & James Eng

Tax Smart Real Estate Investors Podcast

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How Long Does a Rate Cap Run?

In 2021, most lenders wanted you to buy a rate cap for the initial term of the loan. In 2022, these rate caps started getting more and more expensive because the Fed started raising in 2022. So people started shortening their rate cap window. 2024 is going to be a very interesting time because pretty much everyone's going to have to buying a rate cap on floating rate if they cannot refinance out of that bridge into a Fannie loan.

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