Bank Loan Quotes: Closing the Deal Challenges

[Gerardo Waisbaum]

Hi fellow investors,

I recently listened to a thought-provoking On The Market podcast episode featuring Ben Miller from Fundrise, who raised an interesting concern. He mentioned that while many banks provide loan quotes, they often fail to follow through and close the deal. Has anyone else experienced this issue lately?

Ben's observations suggest a potential trend where banks are becoming more cautious and selective in approving loans, potentially due to market uncertainty and the looming possibility of a liquidity crisis. 

Have you encountered similar situations where you received loan quotes but faced difficulties finalizing the loan and securing financing for your real estate investments? If so, how did you navigate these challenges? What strategies did you employ to overcome them?

How do you move forward and submit offers in such an environment when your reputation is on the line? Are you including a financing contingency clause in your LOI's?

Looking forward to your valuable input!

[Alex Deacon]

@Gerardo Waisbaum I do a lot of business here in the Pittsburgh market. I find its best to have relationships with local lenders. Build relationships with them and talk to other investors and get recommendations from them for investor friendly lenders. It is a challenge and I do see it getting worse.