286: No One Predicted The Current Interest Rate Environment

It’s no secret that precipitously rising interest rates took many Real Estate operators by surprise, especially those who utilized shorter-term floating debt. As their loans are coming due and they’re being confronted with the reality of much higher rates, many operators are lowering or stopping investor distributions. Over the next several months and quarters, there are operators who will have to raise very expensive rescue capital, conduct capital calls from existing investors. or in worse-case scenarios, even foreclose. Rob Beardsley, Founder and Principal of Lone Star Capital, is doing a great job managing a 2300 unit portfolio in Houston, and is navigating this challenging situation responsibly on behalf of his investors and is positioned well to come out way ahead over the next several years.