In today’s market, it’s common for real estate investors to shop around for the lowest possible interest rate. And on the surface, that makes sense—nobody wants to pay more than they have to. But when it comes to short-term lending, like bridge loans or fix-and-flip financing, focusing solely on the rate can cost you more than you save.
Here’s why the lowest rate doesn’t always equal the best deal.
1. Speed Matters More Than Ever
Real estate moves fast. Whether you’re competing on a hot property or trying to hit a tight closing deadline, you need a lender who can move quickly and confidently. A lender offering a super-low rate but taking three weeks to underwrite and close won’t help you win deals—or avoid penalties.
Look for lenders with a proven track record of fast, efficient closings. In many cases, shaving a few days off the process is worth more than shaving a few basis points off your rate.
2. Certainty Is Priceless
Have you ever had a lender back out days before closing? It happens more than you’d think—especially with lenders who use teaser rates to get you in the door but don’t have the funding or flexibility to follow through.
In a time-sensitive transaction, certainty of close is everything. Choose a lending partner who is upfront, transparent, and actually delivers on their commitments.
3. Flexibility Beats Rigidity
Every deal is different. The best lenders know how to look beyond the numbers and understand the full story of a property, borrower, or timeline. A lender who’s willing to structure terms to fit your deal—even if the rate is a touch higher—can save you money in ways that don’t show up on a term sheet.
4. Real Partnerships Go Beyond Pricing
Private lending is more than a transaction—it’s a relationship. You want a partner who’s experienced in real estate investing, can help you troubleshoot potential issues, and even alert you to risks you may not see.
That kind of value doesn’t come from the cheapest quote.
Bottom Line: The Best Loan Is the One That Gets You to the Finish Line
Yes, rate matters—but in short-term real estate investing, speed, certainty, and support matter more.
At Low Tide Private Lending, we focus on helping our borrowers close on time, stay on track, and grow their investment portfolios. If you’re currently comparing lenders, we’d love to help you see the full picture—not just the rate.
📩 Let’s talk. We’re here to help you succeed, one deal at a time.