Wall Street Journal's $2 Trillion Real Estate Debt Warning | Nick Gerli
https://www.youtube.com/watch?v=G6vg0pKoIvM
Language: en | ASR: large-v3-turbo @ 0a363e9161cbc7ed1431c9597a8ceaf0c4f78fcf

[00:00:00.000 --> 00:00:03.500] Speaker 1: The Wall Street Journal just ran an article a couple days ago about how there's a $2
[00:00:03.500 --> 00:00:08.480] Speaker 1: trillion refinancing wall hitting for multifamily. And what they're talking about there is
[00:00:08.480 --> 00:00:12.700] Speaker 1: a lot of the apartment landlords over the last 10 years, back during the pandemic and late
[00:00:12.700 --> 00:00:17.200] Speaker 1: 2010s, they took out cheap debt, cheap interest rate debt, 3%, 4%. Most multifamily
[00:00:17.200 --> 00:00:22.400] Speaker 1: apartment loans are only five to 10 year terms. So those are rolling now and over the next
[00:00:22.400 --> 00:00:27.500] Speaker 1: couple of years. And these apartment landlords are flipping from a 3 .5 % rate to a 6 %
[00:00:27.500 --> 00:00:32.240] Speaker 1: rate, a 6 .5 % rate. And that's causing their interest burdens to double in some cases,
[00:00:32.480 --> 00:00:36.460] Speaker 1: meaning they're not going to cover their debt surface in many cases. It's a tough landscape
[00:00:36.460 --> 00:00:40.040] Speaker 1: right now if you're a real estate investor. I think the green shoot is like this is the
[00:00:40.040 --> 00:00:44.100] Speaker 1: first time in 15 plus years where there's starting to be real opportunity, right? Like
[00:00:44.100 --> 00:00:47.360] Speaker 1: there's starting to be some real distress in these different sectors. And I think we're
[00:00:47.360 --> 00:00:48.940] Speaker 1: going to see even bigger discounts over the next year.