BONUS CONTENT | Navigating Today's Cost of Capital

Real Investor Radio Podcast

In this Real Investor Radio bonus content episode, hosts Craig Fuhr, Jack BeVier, and Fred Lewis delve into the current real estate market landscape and its implications for investors. They highlight the impact of the rising five-year treasury rate on the cost of capital for investors looking to add rental properties, discussing challenges stemming from high property prices and dwindling rent growth.

The conversation also covers banks’ responses to changing deposit bases and regulatory considerations, leading to loan repricing. Private lenders’ rates are explored in connection with bank rates and securitization pricing. The hosts also touch on the correlation between the 10-year treasury rate and consumer mortgage rates, affecting both buyer affordability and sellers’ decisions. The episode emphasizes the need for patience and operational stability in the evolving real estate market.