@andrewjsallee: I'll be honest, when I first saw interest rates start climbing back in '22-'23, I totally understood why so many of my fellow investors were freaking out. But as someone who's been navigating these kinds of cycles for a while now, I also knew that the "crazy" market was hiding a golden opportunity - you just need the right mindset. 👇👇 You see, I've learned that the key to succeeding in real estate (or any investment, really) is all about staying levelheaded, even when things feel chaotic. It's about: 📊 Trusting your analysis 💪 Leaning on your experience ❤‍🔥 Having the confidence to act when others are paralyzed by FEAR One of my long-time developer friends had just built a brand new shopping center. When interest rates were sitting around 3-4%, that property would sell for $5 million. See, there's this thing called a "cap rate" that moves up and down with interest rates. So when interest rates went up, the cap rate went up too. And that meant the property's value dropped from $5MM down to $4MM. In other words, I was able to get the exact same shopping center, with the same income, for $1 million less. 🤝 Now, I know what you might be thinking - "Isn't that just a bummer?" 🤨 I understood that the underlying fundamentals of the deal hadn't changed. 💵 It was still the same property, generating the same income. The only thing that had shifted was the market's perception, driven by those higher interest rates. "But won't those high rates last forever?" 🤔 Nope! Based on what I've seen in the past, those 7% rates are likely to come back down to normal by the end of 2024 or early 2025. It was a powerful reminder that when the market is in upheaval, that's often when the greatest opportunities emerge. But you have to have the right mindset to recognize and seize them. The truth is, developing that kind of perspective doesn't happen overnight. It takes time, experience, and a willingness to step back and look at the bigger picture. But I can tell you from personal experience, it's an invaluable skill that will serve you well, not just in real estate, but in all aspects of life. © Spilling the Beans with @timbratz - 2023 #RealEstate #interestrates

andrewjsallee

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Sunday 14 April 2024 19:23:00 GMT