871 - Multifamily Real Estate Is At Risk Of Crashing — Here’s Why by Scott Trench part 2
BiggerPockets Daily
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Commercial Real Estate - The Great Deleveraging
An estimated 2-thirds of the market uses fixed rate debt and likely won't run into real pressure for 5-10 years, depending on their loan term. Many variable rate loans have rate caps in place, often required by their lenders that temporarily prevent interest rates on their debt from rising too high. The cost of renewing these rate caps is skyrocketing by as much as 10 times in light of rising rates. Ben Miller, CEO of Fundrise, has termed this phenomenon the great deleveraging.
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