Beyond Rate: What Do You Value Most in Financing?

Question

Speed, flexibility, certainty, and structure often matter as much as rate.

What factors weigh most heavily for you when choosing financing for a deal?

Trevor Higgins · Answer

Having worked in lending, specifically with investors for over a decade. I can say one of the most important things is experience. There is no one size fits all lending solution, even with DSCR there are differences between products and investors.The experience also allows for the best suggestions and consultation on strategy for scaling, underwriting deals, and the lessons learned myself and my clients.

Amber Stout · Answer

Hi Kelly, love this question. From the lending perspective, I find investors value the certainty and structure. They are often times underwriting the deal and looking for a specific return which has them valuing certainty. If you have a lender that understands the underwriting and investor's ROI, they can structure it a specific way (ie.  seller paid rate buy down) that allows the investor to hit their ROI and requirements for the deal. I find being able to structure with the best outcome for the investor is when there's a realtor who can also negotiate and sell the structure we want. What have you seen with your investors as to what they value most?

Doug Smith · Answer

Close-ability. Football Coach Bill Parcells once said "The best ability is "availability"" when he was talking about football players. Who cares how fast the player ran the 40-yard dash at the NFL combine if they are always hurt and can't play. Similarly, when you're working with a lender, take a moment to look them up on Linked In. How much confidence do you have in that pro to know that you're going to close and that you're working with a pro that will give you the very best advice. Were they working at a coffee shop last month and passed the NMLS exam and somehow that makes them an expert? Just like in your field, @Kelly Schroeder, does the agent/broker have a great deal of experience and many transactions under their belts or did they pass the real estate test a month ago? Sure, rate, fees, structure, and overall costs are very important, but who cares if it doesn't close because the pro you are working with doesn't understand the programs and process. Do they treat it like a physician would on your first visit? Do they do the "blood work and gather family history"...meaning do they take the time to really dig into your entire financial picture to identify the best course of action, or are the quoting programs and rates without even understanding you or your transaction? Closability means what is the likelihood of the transaction closing without a hitch. Getting to the close, in my humble opinion, is the most important factor in financing. Great question.

Kelly Schroeder · Answer

Amber, I really appreciate that perspective. Especially the point about certainty and underwriting alignment.

We’ve seen something similar. Most experienced investors are underwriting for outcome, not just rate. If the structure supports their projected ROI and keeps execution predictable, they’re far more comfortable moving forward. Even if it’s not the absolute lowest-cost option on paper.

Certainty of closing and timeline clarity tend to rank very high. Many investors would rather know exactly how the deal will perform and close smoothly than chase marginal savings with unknowns attached.

I also agree that when lenders and agents are aligned on structure, negotiations become much more strategic. It shifts the conversation from “price only” to overall deal performance.

Beyond Rate: What Do You Value Most in Financing?

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