How Are You Financing Deals as Rates Ease but Competition Stays Tight?

[Andy Gonzales]

With interest rates starting to ease a bit this quarter, I've noticed some investors moving back toward traditional financing. But interestingly, a lot of people I talk to are still mixing in creative or alternative options — DSCR loans, private lenders, and joint ventures — to stay competitive in tight markets.

It seems that even with rates improving, speed and flexibility are still huge advantages, especially for flips and mid-size rental projects.

I’m curious — how are you all approaching financing in today’s market?
Are you leaning back into bank loans, or keeping private money and short-term funding in your toolbox?

Looking forward to hearing how others are navigating this shift.

[AJ Exner]

I'm still experiencing a lot of hesitation with traditional banks in my area and, from what I'm seeing, DSCR rates (true DSCR deals) are actually beating the trad groups in a lot of areas.

I am seeing a rise in Cash-out bridge loans with the anticipation of rates dipping a bit more going into the spring, but I saw the same thing in 2023/2024 and I remind people that rates dropping are not always guaranteed and that cash now is almost always better than cash later.