Why the Cheapest Lender Will Cost You the Most
In real estate investing, especially fix & flips, everyone talks about interest rates.
“What's the rate?”
“Can you beat this lender?”
“I’m looking for the lowest interest possible.”
It makes sense, on the surface.
But here’s the truth every experienced investor eventually learns:
Interest rate is NOT what determines whether your flip makes money.
Timeline does.
And the cheapest lender is almost always the slowest.
1. The Rate Obsession Is a Rookie Mindset
New investors compare lenders the same way people shop for a car loan, by the APR.
But flips don’t operate like consumer loans.
On a fix & flip:
Holding costs matter more than interest
Delays cost more than points
Speed determines profit
Certainty beats “cheap” every single time
A lender offering 1–2% less interest can still cost you thousands more if they delay closing by even a few days.
2. A Real Example: The Cost of a 10-Day Delay
Let’s break it down.
Say two lenders offer you:
Lender A: 11% interest, closes in 48 hours
Lender B: 9.5% interest, closes in 12 days
Most rookies choose Lender B because “the rate is cheaper.”
But here’s what they miss:
Daily Holding Costs:
Mortgage + utilities + taxes + insurance + contractor scheduling + staging delays =
$300–$450/day
So a 10–12 day delay costs:
$3,000 – $5,400
before the flip even starts.
That savings of 1.5% interest?
Worth maybe a few hundred bucks.
The delay cost more than the interest ever will.
3. Slow Lenders Don’t Just Cost You Money - They Cost You Deals
This is the part investors feel the hardest:
A slow lender can cause you to lose the deal entirely.
Because while you wait for underwriting:
Sellers accept someone else
Assignments expire
Contractors move on
Your offer loses credibility
Your EMD becomes at risk
Your reputation takes a hit
Experienced investors know:
You don’t need the cheapest lender.
You need the lender who can CLOSE.
4. The Most Expensive Cost Is the Opportunity Cost
Every day you’re stuck waiting on a slow lender is a day you’re NOT:
Getting your crew in
Starting demolition
Getting permits moving
Getting to market faster
Selling before competition hits
Lining up your next deal
If your capital is stuck in a deal that hasn’t closed yet, you’re losing the chance to buy the next flip.
Slow lenders limit your growth.
Fast lenders scale your business.
5. Why Fast Funding Wins in Every Market
Whether the market is hot or cooling, one thing never changes:
Speed = profit
Speed = negotiation power
Speed = better deals
Sellers will take a slightly lower offer if they know you can close fast.
Agents fight for buyers who can perform.
Contractors love investors with reliable funding.
Your entire deal flow becomes smoother.
And that’s exactly where HMMB stands apart.
6. How HMMB Protects Investors From “Cheap Lender” Problems
HMMB doesn’t try to be the cheapest lender in the room.
We try to be the fastest, most reliable, and most investor-focused.
With HMMB you get:
Same-day term sheets
Fast approvals
Simple underwriting
Quick fund disbursement
Draws that keep your project moving
Direct communication with decision-makers
A team that understands flips, timelines, and ARV structure
Because your flip isn’t judged by your rate, it’s judged by your timeline and your execution.
7. Final Word: The Cheapest Lender Is the One Who Closes Fast
If you’ve ever lost money on a flip, you know:
It wasn’t the rate.
It was the delay.
A slow lender can cost you:
Your profit
Your timeline
Your deal
Your next deal
A fast lender protects all of that.
So before you chase the lowest rate again, ask yourself:
“If this lender delays me, how much is that actually going to cost?”
Chances are, far more than the interest ever would.
