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The Looming Threat Over Real Estate: Why Prices Are Falling and What It Means

Ken McElroy dives deep into the complexities of the real estate market.


1 - Real Estate 101 Cash Flow Formula

2 - Issue 1 Raising Expenses

3 - Issue 2 Raising Interest Rates

4 - Example Deal Demonstrating the Impact

5 - Summary with 5 insights and what to watch for


2 things to look at:

  1. Investors are investing in Cash-Flow!

  2. Lenders lend against Net operating income.


Rising expenses and rising debt lower the NOI and property value, so the lenders are going to value the property less and offer less money and you will not be able to do a cash-out refi.


2 things to look for:

1. where are expenses rising?

2. what is debt going to do?


Listen to Ken McElroy explain this looming dilemma in the Multifamily Space!

Ken has a real estate strategies podcast! Follow on your favorite platform for new discussions released weekly. You can listen on: www.cremls.com/podcast


Be sure to join is YouTube channel for tons of great videos and insight into the Multifamily Real Estate investing world.





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