Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How To Choose Your Interest Rate

25 Jul 2023 · 1 min

Watch on YouTube

0:34

Christian Osgood explains how to pick an interest rate for real estate financing. Calculate the rate that keeps your cash flow positive, then lock it in for as long as possible. Current rates are 7-8%, so a low rate extended over many years is worth far more than the same rate for just a few years.

Chapters

Here's how you choose your own interest rate. So right now the issue is a lot of people are going to the bank and they're seeing interest rates at 7, 8% in some cases. It's gotten really expensive. So how do you choose your own interest rate? Let's say that the price is fixed on a fixed price. I just have to know what interest rate allows me to cash flow, then make sure that it's a long term because the longer term the note, the better the debt is. You get this awesome 3% debt product. If it's only 3 years, it's not that good. You have that 3% for 15 years, it's phenomenal. Phenomenal. So get that interest rate that works for you, that guarantees cash flow, and then lock it in as long as humanly possible. And then follow for more.