Episode 16: Markets Are Crashing - Should You Change the Way You Loan Money

What's your plan when the market crashes?  In today's episode, Rich discusses how to approach lending during uncertain times, particularly during fluctuating markets. With stock markets oscillating and real estate projections in flux, this episode dives into important strategies for adjusting your lending criteria without making hasty decisions.

You’ll learn how to:

• Adapt your lending criteria in response to market shifts.
• Understand how stock market fluctuations affect real estate investments.
• Assess how cash flow and borrower reliability impact lending decisions.
• Recognize the importance of timing in property investments.
• Project interest rates and their influence on future real estate.
  
  

What You’ll Learn in This Episode:.

(0:38-1:20) Discuss market fluctuations and upcoming spring break plans.

(1:30-2:00) The market is crashing; should lending criteria change?

(2:10-2:45) Comparison of stock market crashes and real estate downturns.

(2:55-3:10) Importance of understanding slow property market reactions.

(3:15-3:40) Exploring the correlation between inflation, construction costs, and inventory.

(3:56-4:17) Rising interest rates and their connection to mortgage rates.

(4:25-4:45) The forecast for real estate in 2025 and its implications.

(5:07-5:30) Key advice: adjust lending criteria based on borrower cash availability.

(7:23-7:52) How much cash should borrowers have for successful property flips?

Who This Episode is For:

• Lenders
• Real estate investors
• Anyone managing financial risks
• Those concerned about market crashes
• Individuals focused on the impact of market downturns on property investments

Why You Should Listen:
Understanding how market downturns impact your business is critical if you're lending or investing in real estate. Rich provides valuable advice on adjusting your strategies and underwriting processes, ensuring you're prepared for uncertain times.

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