Top 4 Ways the Fed Rate Cut Helps Real Estate Investors
A ton of people are saying that the recent .75% Fed rate cut doesn’t help out real estate
investors a whole lot… I beg to differ.
For those real estate investors who learn how to adapt and find opportunities… instead of complain and find reasons why they aren’t successful… this rate cut can be a great thing.
Here are the top 4 ways that the recent Fed Rate Cut help real estate investors:
1. Your credit line rates that float with prime just got cheaper. If you are not using unsecured credit lines go out and get some.
2. Credit card rates will be lower. More rehabbing cash available through credit cards.
3. Most ARMS (adjustable rate mortgages) can/will go lower. This increases cash flow for investors. Period. Possibly think about re-financing and saving thousands over the life of your loans.
4. Commercial rates are now lower. Cash flow is increased on multi-units and strip malls.
Yes, this recent rate cut likely won’t affect the average person looking to buy a home or investment property. However, it will help those investors who have unsecured lines of credit (or even secured for that matter)… and know how to use them wisely.
This type of rate cut can turn a marginal deal into a profitable deal if your main way of financing is with your line of credit.
Now… if you don’t have a line of credit… and you want to be a real estate investor… you should really go out and get one. Of course, an unsecured is the best type to get… but most people usually start off with a secured line of credit (secured on a cash deposit, an asset, etc.)
So, use this recent rate dip as an opportunity to make something happen in real estate investing in 2008.
No… this rate cut doesn’t make a huge difference, but this paired w/ the dropping prices of real estate in most parts of the country may make for an awesome buying opportunity. As Trump said in a video a few weeks back… this is where the fortunes are made in real estate investing.


Hey, my name is Trevor and I'm the founder of The REI Brain and a real estate investor since the age of 21. Right now, my focus in real estate investing is multi-family income properties and I have plans on moving more into the commercial real estate investment world in 2008 and beyond. 

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