Can you make a deal work with sub-optimal financing?

[Roy Gottesdiener]

I'm not a US citizen, and so the best rates I can get for refinances are 6.5%-8% for 30 year loans. I tried running some numbers and it looks like with these rates cash flow is almost non existent.

Is there a way to make deals work with such high interests?

[Bill F.]

@Roy Gottesdiener

We'd need more details to see if the deals cold really work (asset type, location, tenant class ect). Also, how many deals have you looked at? If it is less than 200, you haven't underwritten enough to say that cash flow is non existent. It is non-existent in the deals you've seen. Kind like seeing a million white swans doesn't prove black swans don't exist. 

I'm going to say something that not a lot of people will agree with: 6-8% loans aren't that high, in a historical sense. Thus you should be able to make a few deals work. You need to keep analyzing deals. 

Best of luck.