Interest Rates · Small Bay Industrial Basecamp

Interest Rates

I urge you to be very conservative in your underwriting. Have stress tests on current interest rates for construction debt, LTC ranges and especially what refi rates might look like when you get to a stable asset. Deals die mostly because of a lack of cash to get through short term challenges. With what's going on with 10 year treasuries, Fed, inflation, etc. it's incredibly important you prepare every deal for some challenges in the next couple years. I'd rather pass on something than hand over keys to the bank in 2030 while seeing the equity evaporate.

I'm sharing this post in place of

@Christen Bryant

who would otherwise be saying it, but fortunately is on a much deserved holiday with her husband and kids!

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Interest Rates