Rising Rates: Wait to Buy, Invest Now, or Start Selling?

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 13 February 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Interest rates are still rising even three years after the first rate hikes. So what should you do: wait to buy when rates are lower, sell the underperforming properties you have while prices are high, or keep buying in hopes you can refinance? We’re explaining what each of us is doing with our money during this seven-percent rate era, plus how to score a lower rate loan on rental properties most investors overlook. How is James planning on doubling his money even with high rates? By bringing back a once-popular investing strategy, James is creating a win-win no matter what direction rates go. You can repeat this, too, if you know his plan. Kathy shares how you can lock in a lower mortgage rate by buying new construction, freeing up cash flow all while having close-to-zero maintenance costs. Henry shares some advice on why now is a solid time to think about selling the properties you don’t love and why high home prices can work in your favor whether you’re flipping, BRRRR-ing, or buy-and-holding. In This Episode We Cover How to still invest in real estate during high interest rates (plus our exact 2025 strategies) Why now may be the perfect time to sell the properties you’re tired of holding Better buying opportunities for new builds and how to score a low interest rate on a new property James’ plan to double his money (and create cash flow) with a refreshed type of BRRRR strategy The type of loan that has BETTER rates than residential financing (but can be used for rentals!) And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find Investor-Friendly Lenders Dave's BiggerPockets Profile Henry's BiggerPockets Profile James' BiggerPockets Profile Kathy's BiggerPockets Profile BiggerPockets Daily 1263 - Investors: Stop Worrying About Interest Rates—Here’s Why Right Now Is the Time to Buy Pick Your 2025 Investing Strategy with Dave’s Book, “Start with Strategy” Jump to topic: (00:00) Intro (03:02) Cash Flow Down, Prices Up (07:58) Better Opportunity to Buy? (12:26) Double Your Money with BRRRR (21:24) Lower Rate Loans/Strategies (26:23) “Debt Swap” Financing Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-295 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Rising mortgage rates.
0:01.7	Should you wait or invest now?
0:04.1	That's the question we're tackling today.
0:06.5	Our panel of seasoned investors is already feeling the impact on buyer demand, financing
0:11.1	strategies, and overall returns.
0:13.7	If you're wondering how these higher rates could affect your next deal, you won't want to miss
0:17.7	what they all have to say.
0:24.2	Hey, everyone, it's Dave.
0:26.0	Welcome to On the Market.
0:27.4	I'm here with Kathy Fecky, Henry Washington, and James Dainer to break down this all
0:32.4	important question about affordability, mortgage rates, and what we're all doing in
0:37.3	the face of rates that don't
0:39.3	seem to be going anywhere. Kathy, thanks for joining us. Good to see you. Good to see you. And I am
0:45.2	just going to say, Dave, you're a genius. You're a genius because when we talked about this last
0:50.6	year, I was like, oh, no, rates are going to come down. They're going to be as low as 6%, maybe less.
0:55.8	And you were like, mm, not so fast. I wish I was wrong. I'm, I guess, a little bit happy to be
1:03.0	right and mostly sad to be right about that. Yeah, we just thought you were like David Downer.
1:09.3	James, good to see you. How you been?
1:11.6	I'm good.
1:13.8	It's been busy, busy start of the year.
1:16.9	Well, we're going to dig into that because I want to hear what you're busy about.
1:18.2	Henry, good to see you.
	...

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