Part 1 : The Tightrope Walk: High Interest Rates and the Struggle of Real Estate Syndications
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May 28, 2024
Part 1 : The Tightrope Walk: High Interest Rates and the Struggle of Real Estate Syndications Introduction: In today’s economic climate, real estate syndications face an uphill battle against the backdrop of high interest rates and extended inflation. Many newly formed syndicates are finding themselves in precarious positions, as refinancing options become less favorable and the financial viability of their projects comes under threat. This blog explores how the “extend and pretend” strategy may only be a temporary reprieve and why even potential future rate drops may not provide the needed relief. Understanding Debt Coverage Ratio (DCR): The Debt Coverage Ratio (DCR) is a critical financial metric used by banks
