Interest Rates Are At A Record Low

Interest rates are incredibly low due to the Federal Reserve's attempt to stem negative effects from the pandemic and stimulate growth. This is what it means for you as a real estate investor:⁠
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- When you're borrowing money, you are borrowing it at sometimes less than the cost of inflation right now. You can use OPM (Other People's Money) for next to nothing.⁠
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- There is a record-low supply of homes for sale, and homebuyers are facing competitive bidding wars. The low-interest rates are also helping to drive up prices.⁠
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- The low-interest rates make refinancing particularly attractive. In 2020 refinancing activity reached a 17 year high. Savvy investors are doing cash-out refinances (a non-taxable way to access cash from the equity in your home) to have funds available for more investing.⁠
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If you can find the right property at the right price, low-interest rates make buying with leverage particularly great right now!