by Simon Black
Recently I was having drinks with a friend of mine who is an ultra-successful US real estate developer and investor.
He told me that his team had just closed a large real estate transaction worth hundreds of millions of dollars, and they got a sweetheart deal from the bank.
The bank is loaning them almost all of the money at an interest rate of around 2%.
But it gets better.
If the Federal Reserve raises interest rates, he has the option of locking in the rate that he has now… so his interest rate will basically never go up.