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Podcast: Wealth Formula Podcast
Episode: 284: Jorge Newbery on the State of the Real Estate Market!
Description: "It's tough to make predictions, especially about the future." -Yogi Berra The residential real estate market is on fire. No doubt. We are seeing this across the board from single-family homes to massive apartment complexes. I'm not an expert on single-family home values. I don't understand them as they are not rooted in cap rates etc. However, I can comment on larger residential real estate. Cap rates have gone down primarily because of mortgage interest rates being at historic lows. This is just math. Leverage only works if the money you borrow at is less than the cap rate. Otherwise...