How Inflation Impacts Real Estate: Trends, Risks & Smart Lending Strategies

📄 In this episode of Deeds In The Desert: The Ignite Funding Podcast, Pat Vassar and Tjaden Durham explore how inflation historically affects real estate—and what that means for today’s investors and borrowers. Learn how property values, exit strategies, interest rates, and debt service coverage ratios shift in high-inflation environments.

The Ignite Funding team shares expert insights on risk mitigation, loan underwriting, borrower due diligence, and how short-term real estate debt can be a strategic advantage in uncertain markets. Whether you’re a new investor or a seasoned developer, this episode offers a masterclass in navigating economic cycles through informed, conservative decision-making.

🔍 What you’ll learn:

How inflation shapes real estate asset values

The impact of interest rates on refinancing and exit strategies

Key underwriting metrics like DSCR and LTV explained

Real case studies, risk analysis, and hedging strategies

Why real estate remains one of the strongest inflation-era assets

🔗 Learn more: https://ignitefunding.com

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⏱️ Chapters:
00:00 – What Inflation Means for Real Estate
00:41 – Property Valuation and Inflation
01:10 – Is the Value Real or Nominal?
01:46 – Rents, Cash Flow, and Inflation Tracking
02:02 – Exit Strategies in Inflationary Times
02:37 – Debt Service Coverage Ratio (DSCR) Explained
04:01 – Loan-to-Value vs. DSCR: Forecasting Refinances
05:01 – How We Plan for Unknown Interest Rates
06:06 – Impact of Inflation on Interest Rates and Borrowing
07:07 – Lessons from Past Inflationary Cycles
08:22 – Real Estate as a High-Performer in Inflation
09:32 – Why Short-Term Lending Has an Advantage
10:12 – Building Buffers into Underwriting
11:13 – Evaluating Borrower Strength and Equity
12:12 – How Borrowers Hedge Against Inflation
13:10 – Why Short-Term Lending Mitigates Volatility
14:01 – Inflation Makes Private Lending More Competitive
15:14 – How Deal Flow Changes in High-Rate Environments
16:16 – Real Case: Office Refinance Strategy
17:07 – What Interest Rate Risk Means for Investors
18:15 – Complex Reactions to Inflation and Rate Changes
18:58 – Red Flags in Borrower Structure and Capital Stack
20:24 – Due Diligence on Equity, Syndications & Borrower Experience
21:49 – Margins Matter: Experience vs. Ambition
22:58 – Policy: Underwriting Buffers for Safety
23:12 – Why Every Deal Is Underwritten Individually
24:27 – Verifying Everything in Due Diligence
25:20 – Conservative Lending & Trust But Verify
25:50 – Negotiating Borrower Needs vs. Risk Mitigation
26:46 – Why Economic History Shapes Our Outlook
27:44 – Learn from the Past to Guide the Future
28:33 – Stress Testing in Underwriting Explained
30:17 – Real Estate: Top Inflation-Era Asset Class
31:16 – What to Avoid During Inflationary Times
32:02 – Real Estate Lending That Beats the Inflation Curve

Disclaimer: Ignite Funding, LLC | 6700 Via Austi Parkway, Suite 300, Las Vegas, NV 89119 | P 702.739.9053 | M 702.919.4281 | F 702.922.6700 | NVMBL #311 | AZ CMB-0932150 | Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents.

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