All right, let's talk about interest rates and real estate investing. The two go hand in hand,

but specifically what I'd like to talk about is why interest rates may not be the sole

determining factor when evaluating investment opportunities.

Yes, that's right.

By focusing on other essential elements, we can really start to identify lucrative prospects and maximize

some of our returns in real estate investing.

And right now all of the talk, of course, is on interest rates.

And I want to try to put some of this in perspective

because historically speaking we are literally sitting on interest rates

where they were in the 1990s which is actually a little bit lower than they were in

the 1990s and we saw a boom in the housing market in the 1990s

but this is also far removed from where we were in the early 1980s where we had 18 19%

interest rates so keep things in perspective and it's also removed

from the two and three percent interest rates that we've seen for so long that

kept a lot of homes artificially inflated in price and also a lot of

artificially inflated money that was floating through this system.

So let's put some things in perspective. First I want to start with cash flow

and why if we look at cash flow number one on my list then you really

start to see how interest rates can be separated from this entire matrix cash flow the

key consideration that's what you should be paying attention to, ensuring that the property generates income,

surpassing your expenses, including your mortgage payments.

Even with high interest rates, profitability is achievable if rental income can cover those costs.

...