Anyone who answers this question immediately is not to be trusted:
“Here’s the property address, what rates am I looking at?”
Big accusation, but real.
In my first year brokering, after closing 40+ loans, this question came up so often I wondered if I was bad at my job for *not* answering it on the spot.
Here’s what’s actually happening behind the scenes.
Unless you’re working with a true private money lender, almost every institution has a **range** of rates and terms, not a single magic number.
Roughly:
- Hard money lenders: ~9–12%
- DSCR lenders: ~6–8%
Where you land in that range depends on things like:
- Your credit score
- Purchase price / loan amount
- LTV
- Experience as a borrower
- Property type and condition
- DSCR / rent vs payment
So when a broker gives you a rate quote based only on an address, that’s a red flag. ⛳
They don’t know your credit.
They don’t know your structure.
They haven’t underwritten the deal.
They’re not giving you a quote. They’re dangling a carrot.
If you want to save yourself a lot of headache, try this instead:
Instead of asking,
“Here’s the address, what’s my rate?”
Ask,
“What do you need to know to give me a realistic rate range?”
A good broker will ask questions first:
- Credit band
- Purchase / payoff amount
- Rehab or no rehab
- Rent or projected rent
- Experience
The more real info you give *upfront*, the closer your initial quote will be to what you actually see at the closing table.
Most Popular Reply
interesting write up and perspective, seems the details matter in all facets of rei.
- Michael K Gallagher
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- 614-362-2231