Quote from @Stuart Udis: Real estate investors should not treat loan approval as proof that a deal is profitable.

Dallas Fed analysis says it may not be as bad as the pundits are saying (DCB). - The Atlanta Fed’s GDPNow says the U.S. is growing at +3.8%.

But then there are others… the ones who slow everything down, tack on unexpected application fees or processing costs, or just have terrible communication that leaves you guessing and stressed out.I’m curious  which lenders have you worked with and had a bad encounter?

It can go okay if the deal is smooth, but generally a bad idea with no upside.

I have been having problems getting kicked off the system after writing a response so I just put one sentance up to test it .. still weird but worked.1. back ground check  no one with bad history.2. meet in person 99% of the time3. fly to the market review the projects they have done and are contimplating.4. some skin to start then we do true JV deals IE our money their work.

Coin toss is a bad idea.We have large apartments so have pest control come through weekly to spray various units.  

Bad idea?

A couple of other things I’ve found valuable to look at are:Track record through cycles (how they’ve managed deals in both good and bad markets).Transparency and reporting (how proactive they are with communication, especially when things aren’t going perfectly).Alignment of interests (skin in the game, fee structure, co-investment).In my experience, those have been big predictors of how well a sponsor actually delivers in the long run.

Just make sure the numbers work even if it sits vacant for a bit, and treat it like a business from day one.

I do feel bad for trying to get the existing bottom unit tenant to move upstairs, which will require them to hire a mover since it’s a flight of stairs.