Why “Cash Flowing” Deals Still Get Denied

[Seph Hancock]

One of the biggest misconceptions I see is: “If the property cash flows, the loan should get approved.” Unfortunately, that’s not always how lenders look at it. A deal can make sense from an investor’s perspective and still not fit a lender’s risk model. That’s why I always encourage investors to look beyond the monthly cash flow number and understand how lenders evaluate the entire picture before making offers.