In a well balanced market, traditional financing is the usual and conventional method of providing capital for transactions. However, we seldom find ourselves in a well balanced market. Trends and perceptions usually bring us to either a sellers market, or a buyers market.
Prior to the savings & loan collapse of the 1980’s, interest rates had climbed to unsustainable levels. Prime rate hit a high of 12% while investment properties were commanding a 10% capitalization rate.