Leveraging for higher Multifamily returns #DebtFinancing #LeveragedInvesting #RiskManagement

But that's definitely been a fundamental change in the last three, four months. For the last several years, we've been able to lock in really low fixed rate, long term cheap debt. You need a discount on the purchase price and sellers have started to adjust to make up for that increase in rates. Debt financing obviously is a big thing. How do you finance most of your deals? Is it just the equity? Do you also pull debt? Yeah, a typical deal for us would be leveraged with about 70% debt, which I would say is pretty modest, moderate in the multifamily space because, you know, debt amplifies your returns in both directions. That strategy can really amplify your returns in an up market, but it can also wipe you out in a down, you know, in a downturn. So we try to stay really moderately leverage, you know, bringing 70 debt fixed rate. If we're not able to get a fixed rate loan, then we'll, we'll buy, we'll do floating rate, but we'll buy a recap.