Curious what’s working for you when it comes to lenders?

Question

For those of you actively funding flips, rentals, or refis right now—how are you choosing your lenders or brokers?

Is it the rates, the speed, the people, or something else entirely?

I’m especially curious:

• Where are you finding your lenders these days?
• What do you love about the ones you’re working with?
• And honestly… what do you wish was different?
• If you’ve worked with both lenders and brokers, what made you choose one over the other?
• Are fees (points, closing costs, etc.) playing a big role in your decision-making—or is it more about service?

Where are you finding your lenders these days?

What do you love about the ones you’re working with?

And honestly… what do you wish was different?

If you’ve worked with both lenders and brokers, what made you choose one over the other?

Are fees (points, closing costs, etc.) playing a big role in your decision-making—or is it more about service?

Would love to hear what’s working for you and what you’ve learned from trial and error. Your insights might help someone else here avoid a headache—or find their next great lending relationship.

Doug Smith · Answer

I've been winging it for 34 years. Eventually I hope my faking it will mean I eventually make it.

AJ Exner · Answer

Yeah, I'll second the 'close-a-bility' element. There are plenty of things in REI that can make a deal go sideways, so I love working with a program that can sniff out things ahead of time when possible, and work through them as they come up.

As much as anything, familiarity is a big part. Not just trying to fit some lender's buy-box into yours, but finding the right fit for you, whether its location, amount, seasoning, speed, requirements, there are so many little elements that can make things better/worse that having that familiarity can even supersede a slightly better rate or some extra fees.

I had a mentor that used to say "don't step over dollars for dimes" and I think paying a little more in an underwriting fee to get a deal done in a timely manner so that I can move on to the next one is well worth it.

And, of course, sometimes a good broker can help you find the right fit for most of these things!

Hope that helps, good luck in your selection process

Devin Peterson · Answer

It's best to connect with an experience broker who can help you compare loan terms across a wide variety of lenders.

Erik Estrada · Answer

It comes down to who can close..

The rate and terms are important, but people overemphasize this. You would not believe how many borrower's have shopped me, tried to cut my points before closing, all for them to come back to close on the deal.

Being in this industry, 24/7 it teaches you who is all talk and who can actually perform. When someone that has only done 2 flips in their entire career tells me lender B is offering 100% finnacing at 1 point sub 9% rate, I chuckle. They always come back.

Todd Kime · Answer

i do believe it would be best to choose a lender that has also experience in the investing world  as well.  If not they wont be able to relate at all and cant really guide you to the best possible outcome for your needs.  It might be correct that others are offering the DSCR products to help out, however if the Broker or lender don't know how the process works or simply not able to see the end before the beginning you need to move on.  Thanks

Deborah Wodell · Answer

Great questions, Tolise!

For me, a big part of choosing lenders comes down to flexibility and transparency. I work as a broker and investor, so I’ve seen how important it is to have options depending on the deal. Some of my clients prioritize speed, others want the lowest rates, and sometimes it's just about finding someone who actually understands the project.

I work with a solid group of lenders across the country, and I’ve found that the best relationships are the ones where communication is fast and the terms are clearly laid out—no surprises at closing.

As for fees vs service? Service wins every time. A slightly higher fee is worth it if the lender can actually get the deal done smoothly.

Doug Smith · Answer

Just South of you in Tampa here. There's a saying in sports that the best ability is availability. In lending, it's "close-a-bility". Does the lender actually close that type of deal on a regular basis? Does the lender know what they are doing? One of my loan officers that exclusively does residential loans called me today on a DSCR and she was completely lost. Pretty much every mortgage broker is offering investor loans these days, but few really know their poo. I think the best thing for you to do is to really question the lender about their knowledge of that type of lending. Have they done flips or rentals themselves? How long have they done that type of loan? How many have they done? Do they have the answers off the top of their head (I mean the right answers)? It doesn't take long in speaking with a lender to know if they know what they are doing or not.

Curious what’s working for you when it comes to lenders?

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