“Interest rates are too high to invest today.”

Nonsense.

His name was Jimmy Carter. A brilliant man: nuclear engineer. But not an economist. Worse, unwilling to listen to economists. Not listening can be a problem if you’re too smart. During his presidency, interest rates rose to 16.64%. Repeat: 16.64% . You think 7.00% +/- is too high?

When I was in law school my wife and I bought our first home. We thought we had hung the moon when the VA offered a GI Bill interest rate of 6.50%. The norm was 6.0%. I was unemployed, so an additional fifty basis points seemed reasonable. As I write these thoughts, the current commercial lending rate is between 6.54% for a triple net single-tenant loan and 8.00% for an SBA 504 loan. Do the math. Or call me, and I will do the math.

Interest is only one of many factors to consider when applying financial metrics and analytics to commercial real estate investments. As a CCIM designee, I enjoy conducting discounted cash flow analyses to assist in investor decisions. Let me know if I can help.

“Don’t wait to buy real estate. Buy real estate and wait.” (Will Rogers)

Ray Regan, CCIM

Mobile – (505) 220-0460

Email – RayRegan@RayRegan.com

Website + Blog Tips – RayReganNM.com