Will The Fed Raise Interest Rates?

Performance Property Real Estate Question

Q: Gerald, I just got started investing in real estate. People say the Fed is going to raise interest rates. Is that going to happen and if it does should I be worried? Kendrick, Cuyahoga Falls, Ohio

A: Hi Kendrick, I’m always reluctant to make predictions because unlike a lot of pundits you see on TV, I can’t predict the future however all signs point to another interest rate increase and Janet Yellen has intimated that a rate increase is likely to happen. The bigger and more important issue for you as a new investor is to understand where you have the most leverage and to then focus on those areas. Interest rates are one of 7 things you cannot control in real estate, which are

7 Things you CANNOT control in Real Estate:

Interest rates
Taxes (Property and Income)
Cost of Insurance
Sale Price (when you sell) & rent price when you rent-because the person with the money ultimately decides the price
Price of building material
Price of land
Inflation

You should be aware of interest rates, taxes and other things that are out of your control, but being successful requires focusing your efforts and attention on the areas that you do control not fretting about things you don’t have any control over.

Thanks for your question, Kendrick. Good luck.

For more real estate tips and information visit my blog at geraldlucas.com.

Testimonials

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Vaughn | Westfield, New Jersey

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Stephen Brunson | Plainfield, New Jersey

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Mary Elizabeth Robinson | Wilmington, Delaware

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Berkis Castro | Clifton, New Jersey

“Thank you so much for helping me. My property was haunting me for quite sometime. We tried for so long to sell but couldn’t. My family and I never thought we would resolve this problem so easily, but you facilitated the whole process and made it swift and painless. We can’t thank you enough for this.”

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Gita Gorji | Hoboken, New Jersey

“Our loan modification was finalized. Got all the documents. Even got legal documents stating that foreclosure proceedings were cancelled. Our rate went from a 4.75 to a 3.4 and our mortgage payment went down almost $200 a month. So all is good. Thank you so much.”

Crystal | Totowa, New Jersey

“Finally the bank called me and said that my loan modification was approved! I thank you so much for your help it really meant a lot to me...I really appreciate you. Thank you Thank you Thank you”

Camille Perry | Newark, New Jersey

“Hey Gerald wanted to give you a heads up that they offered me a loan modification. Thanks for all your help!"

Robert Evans | North Arlington, New Jersey

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Carol Cunningham| West Orange, New Jersey

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Iradys Rivero| North Bergen, New Jersey

“At this point, Gerald, you are the only person I can trust. I appreciate all your efforts to assist me."

Deborah Dowe| Plainfield, New Jersey

“I want to thank you for helping me to get the courage to work on this problem because I didn't want to face it. Your help with the phone call to the mortgage company & other assistance was so appreciated. Thank you so much."

Evelyn Rudnicki | Rochelle Park, New Jersey

“I'm not trying to be a pain in the neck but I would like to thank you for your advice. I think things are going to work out for me. I did exactly what you told me and I think the mortgage company is going to work with me. I appreciate your advice. You are a Godsend. The world needs more people like you. Thank you and God bless you."

Jimmy Armstead | Roselle, New Jersey

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Virgilio Rodriguez | Paterson, New Jersey

“I followed the instructions Gerald from Performance Property gave me and I proved to my lender that I can pay back my mortgage.”

John Nikoe | Linden, New Jersey

“God bless you.”

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Jim Armstead | Roselle, New Jersey

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Melody Melendez | Elizabeth, New Jersey

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Amoy Frost | South Orange, NJ

“I appreciate all your help from the beginning and throughout the process. Thanks to you I was able to refinance and keep my house.”

David Brown | Rahway, New Jersey

“Thanks Gerald...I appreciate the time and effort you put in to this. You never gave up on it and I get my life back. I am grateful for everything. Thanks again.”