A $10 million property drops 20%. The loan is $8 million at 3%, and it's coming due.
Now rates are 6%. The bank will only lend about $5 million.
That's a cash-in refi. You have to bring millions to the table just to keep the property.
One owner put a second mortgage on his house to cover it. The number kept growing, from $4 million to $7 million. He was forced to sell and lost $15 million.
How would your deals hold up if the refi came due at today's rates?