The Fed Cuts Rates: 1/2 Point!

The Fed, in a globally concerted effort, cuts rates by 50 basis points. The target rate has now been lowered to 1.5%. The rate for the Fed's discount window was lowered 50 basis points as well bringing the rate to 1.75%.

The move was done in coordination with central banks worldwide.

For real estate investors using equity loans and equity lines to finance their real estate investments, your money just got cheaper again. On $100,000.00 investment, you are now paying $500.00 a year less for that money.

Since the Fed's started cutting rates, the rate has been lowered from 5.25% to 1.50%, a 3.75% drop. On $100,000.00 investment, you are now paying $3,750.00 a year less for that money.

With each cut, real estate is becoming more attractive. A home just got cheaper without having to drop the price. Your cash flow just improved even though you, as a real estate investor, are collecting the same rent check.

Fundamentals, fundamentals, fundamentals!