Multifamily Lending in a Rising Rate Environment — What to Underwrite Now

Multifamily Lending in a Rising Rate Environment — What to Underwrite Now

Author: Mark & Tamiel Kenney June 24, 2022 Duration: 23:52

You pulled up your underwriting model and the numbers that made sense last month don't anymore. Rates moved. Proceeds got cut. And you're not sure what assumptions to use going forward.

In this episode, Mark Kenney sits down with Brandi Shotwell — principal at Reno Capital Management and the mortgage broker he uses exclusively on Think Multifamily deals — for a real-time breakdown of what lenders are doing in the days following the Fed's 75 basis point hike, and exactly what numbers to use when underwriting multifamily right now.

In this episode you'll learn:

•       The exact underwriting inputs Brandi's lender contacts are recommending right now: 70% LTC, 5.5% bridge rate

•       How SOFR and spread determine your actual bridge loan rate — explained simply

•       Why cash flow and debt yield are now the primary drivers of how much proceeds you can get

•       Fixed rate bridge at 6–8%: when it might actually be cheaper than a rate cap

•       Where Fannie and Freddie stand — rates, leverage, and the DSCR hurdles you need to clear

•       Why 2.4% apartment vacancy and rising single family rates could drive rent growth that offsets higher capital costs

This episode was recorded the same week as Episode 113, where Mark shares his own real-time market observations from the same 48-hour window. Listen to both for the full picture.

Ready to invest alongside experienced multifamily operators? Join us at our next live event at thinkmultifamily.com/event.

Subscribe to the Think Multifamily Podcast on Apple Podcasts and Spotify.

 


Mark and Tamiel Kenney built something remarkable, turning a single duplex into a portfolio of over sixty-five hundred units in just three years. On the Think Multifamily Podcast, they pull back the curtain on exactly how they did it, moving beyond theory to share the tangible, week-by-week steps that define real success in apartment investing. This isn't about sacrificing your time or freedom; it's a practical conversation about building a legacy that actually works for your life. Each episode feels like a direct conversation with the Kenneys, filled with the specific insights and hard-won lessons from their own journey. You'll hear them break down complex deals, discuss market shifts, and explore the mindset required to navigate the challenges and opportunities in multifamily real estate. Tune in for a straightforward, content-rich dialogue that cuts through the noise, offering a clear path for anyone serious about creating lasting wealth through property. This podcast provides the kind of actionable guidance that only comes from hosts who have walked the path themselves.
Author: Language: English Episodes: 50

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