Institutional investor purchases of residential real estate may be largely all cash offers, but the money that funds those purchases come from a mix of debt, re

Institutional investor purchases of residential real estate may be largely all cash offers, but the money that funds those purchases come from a mix of debt, rental earnings and invested capital. I think it’s worth pointing that out because they are more susceptible to interest rates moving because their debt is short term. We may see institutional investors start to divest their real estate holdings if interest rates rise and their margins get squeezed.