Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake and Gino. And in this

important lesson, we're going to be discussing navigating interest rate changes with your portfolio.

Your hearing rates are going down. Are they going to stay? Well, how does that affect your portfolio

now? And how does that affect deal flow going

forward? That's what we're going to be discussing on this lesson, on this how to this week.

Because it's, it's one of the most for me interesting discussions that we've had over the past two years.

In 2022, we look back and that's where we can find out that multifamily peaked. That's when

valuations peaked. Since then, they're down about 20%. I would say they should probably

be down a little bit more. But right now, everyone's at a hold pattern. And what's really interesting,

I want you to listen to this number, $2.8 trillion. That is the loan maturity by the year 2028. That's the amount of loans that are

maturing by 2028. And we heard all the doom and gloom last year that we had so many, so much

interest rates, that means we had so many loans coming due, especially in October of last year and

in October of this year. But what's happened is people have bought cap rates and they've extended and they're just praying that rates go down.

Now, we talk about buy right, manage right, and finance right for a reason.

Finance right component, as I've been in this business for almost over two decades,

I've really realized and come to appreciate how important financing is in real estate.

We own property in Italy.

My mom built this beautiful home back in 1996.

I went to look at it.

I never saw so much concrete going into a single family residence in my entire life, all the steel.

They built this roof, terracotta.

The guy took over two months just to do the roof.

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