Who are the big losers in the interest rate hikes? Your thoughts

[Jay Hinrichs]

Right now many investors think its them and are now trying to time the market or stuck in wait and see mode.

the real losers are Tenants and those who wait thinking that the market is going to crash.

From my trips to the markets I serve this summer I have found in real life scenarios  this is  KC  Cleveland Balt  Toledo  Akron  E PA

SC  MS  AL  FLA IN  WI  these are  all the markets I am currently working and have traveled to this year we help those looking to build portfolios  also companies that provide turnkey inventory for out of state folks and of course retail fix and flippers. So a pretty good sampling of what is going on currently.

Tenants that just cant buy or are on section 8 for life are the big losers here Section 8 not so much thats basically a lifestyle but the market rate tenant is the big loser Rents have gone up substantially in all markets more than enough to cover the increase in the cost of debt and the current pricing levels..

The other big loser is the investor who thinks they will wait it out thinking there is going to be a  crash of some sort or prices will get better ( this will happen of course to some degree as some sellers panic) but its not going to be a 08 low hanging fruit event if it gets that bad DEBT will dry up and unless your a TRUE cash buyer your not going to get a loan anyway.

so in my mind losers right now are Tenants and Investors who get mired in Social Media doom and Gloom as long as debt can still be gotten I I see it every week when our deals pay off and the new rents basically support a decent COC return real estate is the place to be for long term wealth.

[Michael P.]

It’s 2022 we are all winners and get a trophy!