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Episode 174: Neal Bawa - What NO ONE In Multifamily Is Talking About in Today’s Market

The Apartment Gurus

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How Does the Spread Work?

The spread represents the risk premium. Banks don't quite know what is going to happen in the future. If that SOPHRA component, the Fed Fund's rate component goes up, you'll be paying more. And so this is how the Fed is affecting your lending costs. But on top of that, there's a second piece. and that's the piece that most people don't understand - especially in 2023.

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