How do you typically go about negotiating terms with lenders (IR, loan term/amount, fees, prepayment penalties, etc.)?
What are things you almost always negotiate?
Very broad but any insight would be appreciated.
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Depends on what you're looking for and your strength as a sponsor.
Example, are you looking for just some short term financing for a value-add deal you want to exit in 2-3 years? If so, then negotiate a limited to zero prepayment penalty.
Are you planning to hold for a very long time? If so, then focus on the interest rate.
It depends on what your strategy is that will determine what you prefer.
More importantly, your ability to even negotiate is going to come down to your strength as a borrower and the strength of the deal.
A couple items I would always negotiate is actually the guaranty if you can. I'd rather pay a bit more on fees but get a good night's sleep knowing I can avoid personal liability. Again that's my preference.
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