Took me 3 bridge deals to finally trust the 1.25x DSC floor

I used to push every loan request through underwriting hoping the lender would bend the rules, but after getting burned by a $400k payment default in Tampa last June, now I check the debt service coverage myself before I even call the broker, and I'm wondering how many of you actually run those numbers on the back of a napkin before you submit?

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cole_walker262mo ago

I read a piece in The Mortgage Banker last month that said most defaults happen within the first 18 months of the loan, and that's about the time people's true cash flow shows up. Your Tampa deal sounds like it hit right in that window, after the honeymoon phase ended. I do the same thing now, quick math on a scratch sheet before I even pick up the phone, and it's saved me from two bad ones so far.

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