A few weeks ago, we closed a $30 million refinance on Park Towers, a 210-unit multifamily property in Miami that we’ve owned since 2012. We secured long-term, fixed-rate financing at 6.09% in a lending environment that many people still describe as difficult.
But I think saying “banks aren’t lending” misses the bigger picture. Capital is available. The real questions are who can access it, which deals are getting financed, and whether the debt being used actually makes the investment stronger.
In this video, I talk about how I approach leverage, interest rates, cash flow, refinancing risk, and margin for error when evaluating real estate investments. A great property can still become a bad investment if its capital structure can’t survive when rates rise, occupancy falls, insurance costs increase, or refinancing becomes harder.
I also share my perspective on why investors shouldn’t depend on interest rates falling for a deal to work, how a more difficult financing environment can create better buying opportunities, and what more than a decade of owning and operating Park Towers has taught me about long-term value creation.
The goal isn’t to predict every market cycle correctly. It’s to structure your investments so they can survive when one of your assumptions is wrong.
Timestamps
00:10 The $30M Park Towers Refinance
01:03 Are Banks Actually Lending?
01:35 How Bad Debt Can Ruin a Good Deal
03:00 Why Leverage Works Both Ways
03:20 Can Your Investment Survive?
04:15 Why Spreadsheets Can Mislead Investors
05:51 Building for a Margin of Error
06:15 Why Easy Money Can Be Dangerous
06:40 How Difficult Markets Create Buying Opportunities
07:50 The Long Game Behind Park Towers
08:40 Why Durability Matters More Than Speed
09:10 Stop Waiting for Interest Rates to Fall
10:15 How to Survive Real Estate Cycles
10:55 Using Debt to Make Good Deals Stronger
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