Crescit CEO Iacono On Strategies To Mitigate Inflation Risks For Real Estate Investors
Inflation is at its highest rate since the 1980s, but that doesn’t mean there aren’t strategies to protect real estate investors from it. Earlier this month Crescit Capital Strategies did an interview with Bisnow explaining some of those strategies to help real estate investors better protect their investments.
“Underwriting into a rising rate environment is difficult because of the need to predict how cap rates will look and the impact that has on terminal value,” Iacono said. “Some reasonable rise in interest rates should be able to be absorbed. I certainly wouldn’t be underwriting my terminal value based upon interest rates that are indicative of today … but I don’t think we are going back to 1975. There’s a lot of room in between.”
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