Modern Lending Landscape: Insights for Tampa Bay Investors
In the world of real estate investing, your lender is more than just a source of capital—they are a critical partner in your success. In a recent episode of the Tampa Bay Veteran Investor Podcast, host Jeremy Kloter sat down with Jared Prevost of Rain City Capital to peel back the curtain on the current state of real estate lending.
Whether you are looking into your first fix-and-flip or managing a growing portfolio of rentals, understanding the nuances of the “new” lending environment is essential. Here are the key takeaways from their deep-dive conversation.
Direct Lenders vs. Brokers: Which is Right for You?
One of the first decisions an investor must make is whether to work with a direct lender or a mortgage broker. Jared explains that while both have their place, the experience can differ wildly.
The Direct Lender Advantage
- Predictability: They set the guidelines. If a loan officer says “yes,” there is a high degree of confidence the deal will fund.
- Direct Access: You can speak directly to the underwriters to solve problems.
- Better Pricing: With one less “mouth to feed” in the transaction, you often get more competitive rates.
When to Use a Broker
Brokers act as matchmakers between you and multiple lenders. They are ideal for unique scenarios: If you have a “weird” deal—rural properties, recent bankruptcies, or complex seller-post-occupancy agreements—a broker can find the specific “box” that fits your situation.
The 5 Questions to Determine If You Qualify for Hard Money
Investors often bring a “conventional loan” mindset to the hard money space. Jared emphasizes that hard money is significantly easier to obtain because it is asset-based, but there are still five deal-breakers you need to know:
- Permanent Residency: Do you have a green card or permanent residency? This is a major factor for risk assessment.
- Narrative of Repayment: It’s about the history. Do you have a track record of paying lenders back on time?
- Financial Integrity: Background checks matter. Felonies related to financial matters are often non-starters for the secondary note market.
- Liquidity: Do you have the cash to close and several months of interest reserves?
- Non-Owner Occupied: You cannot live in the property. These loans are strictly for investment purposes.
The “Poke Test”: Your Lender as a Partner
“If a lender won’t put their money in the deal, you probably shouldn’t put yours in either.”
A common mistake made by investors is viewing a lender as a “walking term sheet.” Jared argues that a good lender provides a secondary layer of due diligence. They see thousands of transactions and can spot red flags like permit delays, softening rents, or unrealistic “pro-forma” expectations.
Understanding DSCR Loans in 2026
For long-term holds, the Debt Service Coverage Ratio (DSCR) loan remains king. The basic formula is used by lenders to ensure the property can pay for itself:
DSCR =
Debt Service (Principal, Interest, Taxes, Insurance)
In today’s market, Jared notes a few shifts:
- The 1.2x Sweet Spot: While some allow 1.0x, you see better pricing at 1.2x or higher.
- The Insurance Hurdle: In Florida, rising premiums are eating into cash flow. Always get a concrete quote before finishing your underwriting.
The “Entrepreneur” vs. the “Self-Employed”
Jeremy and Jared concluded with a powerful reminder. Real estate investing is a game of coordination. Your job is to recognize the opportunity, optimize the capital, and assemble the team. If the deal doesn’t have enough margin to pay experts to do their jobs, it isn’t a deal—it’s a job.
