American Monetary Association AMA 216 - Financing Your Investments in the New Rate Environment
It's time to take another deep look into rates and ways to finance your properties. Jason talks to lender Aaron about what's going on in regards to rates today, how it's been changing in the last few months, and where to expect it to go in the future.
The two discuss how higher interest rates don't necessarily mean your investments can't make sense. Higher rates also mean more write offs on your taxes, plus your tenant is still paying your debts. So you might have lower cash flow, but it can still be a great inevstment that gets better over time with your locked in rate.
Key Takeaways:
[5:05] Every new regulation requires someone be hired to make sure the lenders are adhering to it, which raises costs
[7:08] What kind of rates can you get today with 20% down?
[10:16] Are people still taking out adjustable rate morgages for investment properties?
[13:02] You need to get your mindeset right when it comes to your real estate business. It's not always strictly about the cash flow
[18:47] The inverse correlation between bonds and rates
[20:49] The best strategy ever is to lock in as many 30 year fixed rates as possible
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