Banks Rejecting Big Loans to Apartment Sponsors. Should You Jump In or Think Twice?
Rising interest rates, skyrocketing property prices, and slowing rents are causing banks to pull out. So sponsors are hitting-up crowdfunding/syndication investors, instead. Is it worth the risk to jump in?
(Usual disclaimer: I'm just an investor expressing my personal opinion and not a financial advisor, attorney or accountant. Consult your own financial professionals before making any financial decisions. Code of Ethics: We do not accept any money from any sponsor or platform for anything, including postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves in the club above what we negotiate for the benefit of members.).
Recession on Their Minds
No one knows when the next recession will hit or how severe it will be. But one thing we do know is that it's not a matter of if but when. And these days, some people are looking around and wondering if it might be sooner rather than later. The stock market has been in a correction since January. The cost of oil is rising rapidly (and oil price shocks are a major cause of past recessions). The possibility of significant tariffs loom on the horizon (which could be like a bullet-in-the-foot, reducing business profitability, GDP and employment). And the synchronized global growth that looked so promising at the beginning of the year is starting to unravel in the euro zone, Chin