Most deals I see today don’t fall apart because they’re “bad deals” they fall apart because they’re structured like it’s still 2021.this year, lenders are looking harder at:
Exit strategy (not just purchase)
Realistic rent numbers
Liquidity after closing
The investors getting consistent approvals are:
Building in margin
Planning for slower exits
Not relying on perfect conditions
The deal has to work today, not just on paper.
Curious have you adjusted your underwriting this year?
Agreed. I’d say one of the biggest adjustments has been underwriting more to resilience and less to upside. We’re looking harder at how much room there is in the deal if rents take longer to hit, capex runs over, or the exit gets pushed. The stronger borrowers I’m seeing are bringing more cash, using more conservative assumptions, and treating refinance or disposition as a bonus rather than the whole plan. That tends to lead to a much cleaner credit story.