“They fail to, uh, when they raise the rent, they, they fail to get an increased bond amount because it's usually relative to the rent”
Dean Frith · Geared for Growth Property Investing Podcast · Ep. 356: The Commercial Property Mistakes That Can Cost Investors Thousands, with Dean Frith
Play from 19:03
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What was described
increase the security bond amount proportionally when rent is raised
Said nearby on the same subject
“Property manager raises rent every quarter… if you can predict when those rent increases are going to happen, then that can help also with your pro forma and cash flow.”
“The inflation component in nominal bonds plays an important role… when you hold nominal bonds, that's of course exposed… the increase in bond risks has some similarities… bonds and stocks have moved together.”
“Hyperscalers dramatically increasing their CapEx commitments... now net free cash flow negative... going to the bond market and the long end of the bond market”