When selecting lending partners, what specific features do you prioritize?

Question

Are you looking for:

• Speed of approval and funding?
• Flexibility in loan terms and conditions?
• Competitive interest rates and fees?
• Experience and expertise in your specific type of project (e.g., fix-and-flip, rental properties, commercial real estate)?
• The ability to work with unique or complex property situations?

Feel free to share what’s most important to you and any other factors that influence your decision-making process.

AJ Exner · Answer

Hey Jeff,

I think fundamentally it is finding a group that says 'yes'. Finding an established group that finds a way to get deals done tends to be as helpful as anything as many of us have had experiences of weird and seemingly unnecessary denials.

I do like to make sure that its a region they lend to and the type of project that they do. Unfortunately, a lot of lenders tend to operate better with certain types of projects, which is also true in the inverse, that lenders that operate better with F&F or DSCR tend to struggle on the underwriting with other types.

Speed and flexibility tend to go with the ability to do deals well, but I think making sure that they are a lender comfortable and efficient doing the basics of the deal will help. Many of the other things (competitive rates and speed) tend to be more ancillary and preferential as long as the deal can get done without too many headaches.

Every deal is a bit of an adventure, but building a rapport with a group can really go a long ways to help get unique/quirky things done in the future.

Hope that helps!

Jeff Chisum · Answer

Outside of appraisal and title they keep control of the entire process; processing,underwriting, closing and funding