What's one tactic you used to capture lower rates in a 2026 refinancing—such as negotiating SOFR floor resets or unwinding a swap—that tangibly cut your interest expense? How did you structure covenants and call protections to preserve headroom without overpaying on fees?

Swap unwinds really help when rates drop, especially for borrowers stuck with those high fixed rates from a few years back. We just helped a client exit an old swap early - breakage cost was reasonable - then switch to floating with a tighter SOFR floor. Their blended rate dropped for the next cycle. We kept covenants simple, just LTV and NOI, giving them breathing room and cutting fees. Minimal call protection after year one too.

I remember refinancing some flips back in 2026. After getting burned by the SOFR floor on previous deals, I negotiated it way down. That move alone saved a ton of money over the life of the loan. I also made sure the covenants were flexible so I could buy more properties. Seriously, just ask for what you need. Lenders expect it.

After a few refinancings, here's what I learned: get rid of rate floors. On one deal, we got a lender to drop a SOFR floor, so when the base rate fell, our payments actually went down. Without that, we would've been stuck paying more. For covenants, I just keep it to the basics, DSCR and LTV, no weird triggers. Prepay penalties should be flexible too. And always make them show you their model and break down every fee. It saves a ton of headaches.