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E82 - What Do Rising Interest Rates Actually Mean for Cap Rates? - Asym Capital

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E82 – What Do Rising Interest Rates Actually Mean for Cap Rates?

We all know that when interest rates go up, borrowing money becomes more expensive. This also has a profound effect on properties, because the more expensive borrowing becomes, the less debt the property can substantiate, in turn decreasing the property value. As those property values decline, cap rates will continue to climb, meaning that as interest rates rise, cap rates increase as well. What do those rising interest rates actually mean for real estate investors?

Our guest for today is Mike Zlotnik who is the CEO of Tempo Funding and the Founder of TH Management Groups, which are real estate investment companies. He has been a debt and equity investor in real estate since 2000 and has always had a passion for it because of its predictability of outcome and well-understood risks. Mike is also a member of multiple real estate and investor mastermind groups including Collective Genius and hosts a podcast called Big Mike Fund.

Today we are going to discuss…

  • Why watching unemployment is critical if you are going to try to predict anything about interest rates
  • Why rising interest rates can significantly impact most US citizens, even if they aren’t buying a house
  • Our guest’s prediction about the outcome of the unheard of monetary policies which started in 2008

Learn more about our guest: