Took a brutal critique from a lender in Ohio that flipped my underwriting process

Last month I was pitching a small strip center deal in Dayton and this 20-year lender tore my NOI assumptions apart. He said I was using market average rent growth without factoring in the local job loss trend, which completely overstated the cash flow. I went back, adjusted the growth rate to 1.5% instead of 3%, and added a vacancy buffer of 10% based on his suggestion. The revised DSCR came in way tighter, but the deal still works and now I feel way more confident presenting it. Has anyone else had a lender give them a hard number adjustment that actually improved their deal analysis?

3 comments

3 Comments

rivera.holly7d ago

Tough love from lenders hurts but builds character.

johnb957d ago

My credit union actually does 0% fee first late payment and it works way better. People pay up faster when they don't immediately get kicked in the teeth. This whole "tough love" thing feels like an excuse for companies to be lazy about actually helping people fix their problems.

mark6117d ago

Last time I got "tough love" from a lender it came with a 23% APR and a late fee that was more than my car payment. Real character building stuff right there, paying double for a mistake I made five years ago. I guess I should thank them for teaching me a lesson about reading the fine print. But honestly, I'd rather just have a lender who doesn't treat every late payment like a personal crime against their family. Does that make me weak or just practical?