“Higher rates for not terrible reasons… they’re going to cause pressure on rates… yields are higher, that increases your return”
♫
Said on Animal Spirits Podcast
“That’s the ability of taking the mortgage we make, you lever that mortgage, and you get a total return in that range… base rate moved up… cost of debt has compressed”
Animal Spirits Podcast · Talk Your Book: How Higher Rates Are Re-Shaping Commercial Real Estate
Play from 12:56
12:56
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What was described
target a 5% total return on leveraged mortgage loans by pairing higher base rates with compressed cost of debt
5% return
Said nearby on the same subject
“We just hit $2,000 in extra costs related to the war… that breaks down into three broadly three things… higher cost of energy… higher interest rates… military costs”
♫
Said on Prof G Markets
“In the mortgage industry, we all know what a trigger lead is... I want to give it to the loan officer. The loan officer has the highest retention rate in the business.”
♫
Said on Dropping Bombs
“Take the guaranteed return on paying down non-deductible debt. rate rise before Christmas, home is between 6.25 and 6.5%, that's a guaranteed after-tax return. with 8% return you lose 30% CGT”
RJ
Riley Jan
Geared for Growth Property Investing Podcast ·
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