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I’ll explain in depth what this is and how you create massive wealth from it at my LIVE Real Estate Training on Saturday.
Here’s the 2-minute version:
That chart you’re looking at shows servicing rates for commercial real estate loans. Last month, both office and multifamily loans jumped to new highs for the year -- specially for office and multifamily properties.
In other words, more owners than ever are distressed and unable to afford the loans they took out on their commercial real estate properties.
Comparing November of 2023 to November of this year, both rates have surged:
- Office space - 9.9% ⇒ 15.1% 52.5% YoY INCREASE
- Multifamily - 3.3 ⇒ 6.3% 90.9% YoY INCREASE
What’s causing this?
- Inflation raises the cost of maintaining and managing properties
- Sky-high interest rates making their initial loans (obtained at low interest rates) completely unaffordable
- Inability to provide value-add to increase the value of the property during their ownership
- Increased vacancies due to negligent management
- Lowered property value resulting from expensive borrowing costs
- And more…
Distressed commercial real estate owners are trying to secure “extensions” to make good on the loans, but the banks only have so much patience. As a result, many of these loans will result in DEFAULT and the properties will flood back into the market at FIRE SALE prices.
And this trend shows no signs of slowing down.
Financial experts are predicting a “3 year cycle” of climbing distress rates in commercial real estate.
This is our opportunity .
Now, you simply need the right information to leverage this correction to create massive wealth in real estate.
I’ll show you exactly how this Saturday at my Real Estate LIVE Training.
It’s 100% free to attend.
Click here and enter your email to register.
Be great,
Grant Cardone
P.S. Even if you’re brand new to real estate, this training is for you. Join me for free and I’ll also show you:
- How to find great cash-flowing properties in your city
- How to find off-market deals
- How to know what a property is worth and never overpay
- How to get a great loan with little or no credit
- How to identify key decision-makers and negotiate deals
- How to raise money if you don’t have it
- How to put as little as 5% down on a cash-flowing property
- How to defer taxes, maximize appreciation, “trade up”
- How to gain the necessary confidence to get started and more…
- You don’t want to miss this.
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