The 45-unit quote that made me stop guessing at equity stacks

I had a small deal in Richmond that I was trying to line up with a local credit union. My numbers looked fine on paper, but the underwriter kept asking for the same docs over and over. Turns out my exit cap rate was too aggressive and my operating reserve was basically a joke. I spent three days reworking the pro forma, dropped the return assumption by 1.25 points, and added a 6-month interest reserve. The credit union came back with a term sheet 12 days later. It was the first time I really understood how much the lender's risk view shapes the deal, not just my own. Has anyone else had a lender force them to restructure a deal and it ended up being way better for the long term?

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joseph_hunt10d ago

Did they ask you to bump up the reserve or cut the exit cap?