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worn down
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Comments by "worn down" (@worndown8280) on "EXPOSED: Blackstone Housing Default CRISIS | Liquidity Frozen" video.
Higher interest rates are what will cause rental owners to sell. You cant roll over your loan from 3% to 7% and still keep you cap rate positive. And now that homes are losing equity its doubly bad. Thats if you can find a bank who will lend you money on a depreciating asset. Both side keep acting like its 2021 which stimi checks raining from heaven and zero interest rates. Those days are over and never coming back.
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the problem comes when they sell. Someone has to buy. And as banks tighten lending standards prices will drop. The same thing is happening in commercial real estate. Over the next two years there is 1.5 trillion in commercial real estate debt that needs to rolled over. And due to the current market rates and the valuation of those assets, they will have to sell. Banks will have to tighten lending even more and it will spread to residential lending as well, even more so than what has already happened. All of these RIETs are going to get slaughtered. Its why they arent letting anyone pull out money.
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