Real Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
4mo
All three are happening right now, but in my experience the order of frequency is: financing mismatches first, execution second, timeline third — and they're often connected.
The financing mismatch issue is more subtle than it sounds. It's not just "the loan fell through." It's deals that were underwritten at rate assumptions that no longer work, or investors who got pre-approved by a lender who later adds overlays the borrower didn't anticipate. I've also seen a lot of deals die because the buyer committed before they truly understood their DSCR coverage at current rates — the numbers looked fine on paper at 6.5% and then the actual rate came in at 7.5% and the deal no longer cash flows to the lender's threshold.