Today’s episode is a presentation I have put together about how to prepare for raising interest rates and other topics. I answer many questions about interest rates and how a fund can better prepare you for an economic downturn. Some of the questions I answer are,
- What to do when interest rates go up.
- What does the Federal Reserve do?
- How can you protect your investments during an economic change?
00:00 — Introduction to the Big Mike Fund Podcast.
00:22 — Welcome to my presentation.
01:02 — About me and professional background.
01:36 — What Tempo Fund specializes in and other resources we offer.
02:07 — The current state of interest rates.
03:30 — What is a cap rate? How is it used?
07:17 — What happens to cap rates when interest rates go up?
08:01 — Why cap rates get worse.
09:30 — How interest rates affect prices.
10:39 — 3 examples of how interest rates work.
12:00 — DSCR requirements and what that means to a bank.
15:52 — What do these examples teach us?
16:18 — How interest rates affect the value of a project.
21:17 — Is it possible for the asset prices not to fall even with the rising interest rate?
22:11 — Why the Federal Reserve raises interest rates.
24:37 — Maybe, interest rate increases are good for real estate?
28:17 — How the Federal Reserve raises interest rates.
29:00 — The Federal Reserve is raising interest rates too fast.
29:54 — The problem with short-term interest rates.
30:05 — A brief recap of the economic state of the market.
32:23 — How can you prepare for an interest rate rise?
35:43 — How to invest with an economic downturn in mind.
36:30 — Why should you invest in value-add projects?
38:14 — Individual deals vs. Funds
40:37 — The Tempo Opportunity Fund.
42:40 — My contact information.
43:50 — Thank you for listening today.
43:53 — Outro to the Big Mike Fund Podcast.
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