09/24/2026
The Lending Roller Coaster
I talk to a lot of investors...
The amount of capital that is available and actively looking for the right deals is ASTOUNDING, but it takes a superbly connected investor OR a well connected broker to put investors in front of the right capital sources for their specific asset type. Most investors do not realize that there is a financial product for almost every type of investment. Additionally there are different lenders for each type of investment.
BUT WAIT... THERE's MORE...
Getting in front of the right source of capital is NOT the beginning of the end... it is the end of the beginning. Each lender is going to underwrite the deal to ensure it makes sense and works inside the window of their lending guidelines, which can vary from lender to lender. This is where the real rollercoaster experience can begin... and this is where sponsors can feel they are being taken for a ride.
Having been on the sponsor side of deals and on the lending side of deals, I have a bit of a unique perspective regarding lending guideline. The guidelines are the result of having executed thousands of deals for a given asset. Over many deals, the law of large numbers begins to illuminate where deals can go bad and smart lenders adopt guidelines to improve the odds that a deal will actually live up to its thesis to ensure the borrower will actually be able to pay the loan back.
If you feel like you are being taken for a ride during underwriting, hang in there. The lender is working diligently to work through your deal in such a way as to take great care of the borrower while ensuring they do not violate their own guidelines. This is frequently a tough balance that requires some tact for the lender.
