Doing some research, I came across some info on Real Estate Syndications and how they could be responsible for the upcoming crises in Commerical Real Estate and Apartment Complexes.
A Real Estate Syndication, pools money from High Income Individuals and upper middle class. That pool of money, is then used to purchase a piece of Real Estate. But its not just money taking from Investors, its often combined with money borrowed from Banks. However, these aren't traditional loans like fixed rates, va loan, fha.. They were purchased w/ Bridge Loans. With the idea of the loans being short term in nature mainly for home renovations. As many of these properties were Distress aka fixer uppers.
These Bridge Loans have a special feature called Floating Interest Rates. With Floating Interest Rates/Debt, the interest rate moves around whatever the current interest rate is. Which brings back to Powell and the constant rate hikes. The Feds have to see this chart, and know just 1-2 more significant hikes will not only crash the Housing Sector, but potentially the entire USA Economy.
Currently I see an Apex forming around July 2023. There's also a resistances level from March 2023 that hasnt been cleared. For now this just a watch/monitor. No position on shorting real estate here just yet.
look up some of these Syndications ran by guys like Jay Gajavelli, and Grant Cardone
A Real Estate Syndication, pools money from High Income Individuals and upper middle class. That pool of money, is then used to purchase a piece of Real Estate. But its not just money taking from Investors, its often combined with money borrowed from Banks. However, these aren't traditional loans like fixed rates, va loan, fha.. They were purchased w/ Bridge Loans. With the idea of the loans being short term in nature mainly for home renovations. As many of these properties were Distress aka fixer uppers.
These Bridge Loans have a special feature called Floating Interest Rates. With Floating Interest Rates/Debt, the interest rate moves around whatever the current interest rate is. Which brings back to Powell and the constant rate hikes. The Feds have to see this chart, and know just 1-2 more significant hikes will not only crash the Housing Sector, but potentially the entire USA Economy.
Currently I see an Apex forming around July 2023. There's also a resistances level from March 2023 that hasnt been cleared. For now this just a watch/monitor. No position on shorting real estate here just yet.
look up some of these Syndications ran by guys like Jay Gajavelli, and Grant Cardone