Lender · New York, NY · Member since 2026 · 10 posts · 14 votes
I think investors spend way too much time asking:
“Where are interest rates going?”
And not enough time asking:
“Does this deal work at today's rate?”
Obviously, financing costs matter. But I believe waiting for the “perfect” interest rate can sometimes cause investors to miss opportunities. On the other hand, I'm also not a fan of forcing a deal just because you found a property you love. Real estate isn't a dating app. LOL You don't have to swipe right on every property. I'd rather see investors understand:
• Cash flow
• Debt service
• Loan terms
• LTV
• Reserves
• Exit strategy
• Refinance possibilities Then make the decision based on the actual numbers. Rates can change. Your purchase price is your purchase price. I think buying correctly is often more important than trying to perfectly time the market. How are interest rates affecting the deals you're looking at right now?
Hi John, great point. When high interest rates compress pre-tax cash flow, debt service leaves zero room for error. In this rate environment, accelerated depreciation and basis adjustments shift from closing checklists to primary equity buffers. Purchase price anchors the asset, but tax structure determines whether the equity survives the hold.