Madhavi Nade JainReal Estate Fund Manager & Infinite Banking Specialist

All Investments are NOT equal!

16 Jul 2024 · 1 min

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1:14

Madhavi Nade Jain explains how rising rate caps on investments can spike monthly payments from $13,000 to $80,000, and why investors face capital calls asking for an extra $25,000 on a $100,000 initial investment to avoid dilution.

Questions this video answers

From about $13,000 to about $80,000 per month.

$120,000.

About $25,000.

Chapters

Foreign, you're getting a phone call saying, okay, we're here to collect for that third year rate cap. And it's not like 13, $13,000, it's like $80,000 every month. And then, oh, by the way, in six months, I, I'm here to collect 120,000 because it, these rate caps have gone up so significantly now that is impaling a lot of these deals. So what I have seen recently is trying to refinance. So this is one thing, refinancing into another loan if we can make it happen. And what I have seen is we are seeing capital costs. So if an investor like yourself came in with 100,000, you might be getting a call to bring in another $25,000. Now, that is just to hold your shares and not get them diluted. Now, you might have them diluted if you don't bring in the 25 and it's out of your control. I don't have the 25.