On The Market

Rising Rates: Wait to Buy, Invest Now, or Start Selling?

Feb 13, 2025

With interest rates on the rise, investors are weighing their options: wait to buy, sell underperforming properties, or keep investing. Innovative strategies are discussed, including a method for doubling cash flow by reviving a classic investment style. New construction offers opportunities for locking in lower mortgage rates, while current high home prices might favor those considering flipping or holding. Practical advice is provided for navigating this unusual real estate landscape with unique financing options and smart tenant screening.

35:28

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Quick takeaways

Investors are encouraged to sell underperforming properties to capitalize on high prices and enhance cash flow opportunities.

New construction offers better mortgage rates and lower maintenance costs, providing a strategic investment route amidst rising interest rates.

Deep dives

Current Mortgage Rate Trends

Mortgage rates have remained persistently high, with the average rate on a fixed-rate mortgage sitting at approximately 7.1%. This trend follows a recent dip but ultimately reflects ongoing fears surrounding inflation and economic stability. Investors are adjusting their strategies in response, recognizing that while the rates don't seem to be decreasing significantly, opportunities still exist in the market. The general consensus is that the current environment demands a more strategic approach to investing as buyers must adapt to the high-interest landscape.

Intro

2min

Navigating the Current Real Estate Landscape

11min

Navigating Investment Strategies in a Rising Rate Environment

2min

Navigating Real Estate in Rising Interest Rates

7min

Accelerating Property Payoffs

6min

Navigating Real Estate Financing Strategies

7min

Interest rates are still rising even three years after the first rate hikes. So what should you do: wait to buy when rates are lower, sell the underperforming properties you have while prices are high, or keep buying in hopes you can refinance? We’re explaining what each of us is doing with our money during this seven-percent rate era, plus how to score a lower rate loan on rental properties most investors overlook.

How is James planning on doubling his money even with high rates? By bringing back a once-popular investing strategy, James is creating a win-win no matter what direction rates go. You can repeat this, too, if you know his plan. Kathy shares how you can lock in a lower mortgage rate by buying new construction, freeing up cash flow all while having close-to-zero maintenance costs.

Henry shares some advice on why now is a solid time to think about selling the properties you don’t love and why high home prices can work in your favor whether you’re flipping, BRRRR-ing, or buy-and-holding.

In This Episode We Cover

How to still invest in real estate during high interest rates (plus our exact 2025 strategies)

Why now may be the perfect time to sell the properties you’re tired of holding

Better buying opportunities for new builds and how to score a low interest rate on a new property

James’ plan to double his money (and create cash flow) with a refreshed type of BRRRR strategy

The type of loan that has BETTER rates than residential financing (but can be used for rentals!)

And So Much More!

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