The LSCRE Podcast
The LSCRE Podcast interviews institutional investors to learn more about their strategies, sponsor and investment criteria, due diligence process, and asset management practices.
New episodes every Monday at 9am EST.
The LSCRE Podcast
How Conservative Leverage Creates Better Cash Flow for Investors
Higher leverage makes deals look better on paper, but often weakens cash flow and increases risk.
In this episode of the LSCRE Podcast, Craig McGrouther and I break down why we structure deals with lower leverage for better cash flow and risk management.
We discuss targeting lower loan-to-value, using full-term interest-only debt, and maintaining strong coverage from day one.
We explain why LTV alone doesn’t tell the full story, how amortization can compress cash flow, and why flexibility matters more than headline IRRs.
This episode is about structuring deals that can perform today and survive tomorrow.
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