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E69: Risk vs. Reward in Real Estate Financing
Manage episode 448484279 series 2892956
In the latest episode of the Lone Star Capital Podcast, Craig McGrouther and I explore strategies for real estate investors navigating the volatile debt market, focusing on the nuances of short-term and long-term interest rates and their impact on deals right now. We discuss the recent rapid rise in long-term treasury yields, complicating underwriting and feasibility for transacting.
We emphasize the need for a buffer to accommodate interest rate fluctuations and highlight our unique approach using tax-exempt financing. By partnering with nonprofits and housing authorities, we enhance the financial viability of our investments through higher net operating incomes and debt coverage ratios, which allows for more favorable financing terms. This strategy mitigates the challenges of the high-rate environment, offering traditional investors an example of how innovative financing solutions can improve the risk-return profile of real estate investments.
Learn more about Lone Star Capital at www.lscre.com
To apply to attend LSC Summit 2024:
www.lscsummit.com
Get a FREE copy of the Passive Investor Guide:
https://www.lscre.com/content/passive-investor-guide
Subscribe to our newsletter and receive our FREE underwriting model package:
https://www.lscre.com/resource/underwriting-model
Follow Rob Beardsley:
https://www.linkedin.com/in/rob-beardsley/
https://www.facebook.com/RobBeardsleyLSC/
Read Rob’s articles:
https://www.lscre.com/blog
258 afleveringen
Manage episode 448484279 series 2892956
In the latest episode of the Lone Star Capital Podcast, Craig McGrouther and I explore strategies for real estate investors navigating the volatile debt market, focusing on the nuances of short-term and long-term interest rates and their impact on deals right now. We discuss the recent rapid rise in long-term treasury yields, complicating underwriting and feasibility for transacting.
We emphasize the need for a buffer to accommodate interest rate fluctuations and highlight our unique approach using tax-exempt financing. By partnering with nonprofits and housing authorities, we enhance the financial viability of our investments through higher net operating incomes and debt coverage ratios, which allows for more favorable financing terms. This strategy mitigates the challenges of the high-rate environment, offering traditional investors an example of how innovative financing solutions can improve the risk-return profile of real estate investments.
Learn more about Lone Star Capital at www.lscre.com
To apply to attend LSC Summit 2024:
www.lscsummit.com
Get a FREE copy of the Passive Investor Guide:
https://www.lscre.com/content/passive-investor-guide
Subscribe to our newsletter and receive our FREE underwriting model package:
https://www.lscre.com/resource/underwriting-model
Follow Rob Beardsley:
https://www.linkedin.com/in/rob-beardsley/
https://www.facebook.com/RobBeardsleyLSC/
Read Rob’s articles:
https://www.lscre.com/blog
258 afleveringen
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