Same investor. Same credit score. Same down payment. Same business plan.

One deal gets approved with great terms.

The other gets rejected outright.

The difference:

Geography.

The lending landscape has completely flipped in 2025, and most investors are still using the old playbook.

Sun Belt markets that were lender favorites 18 months ago are now getting the tightest scrutiny, highest equity requirements, and most rejections.

Meanwhile, markets that got ignored during the boom years are suddenly getting approvals at 80% LTV with competitive rates.

If you’re chasing deals in the wrong markets, you’re making financing 10x harder than it needs to be.

The Sun Belt Problem

Florida, Arizona, Texas & Atlanta were the darling markets for storage.

Now they’re oversupplied…

And lenders know it.

I’ve watched deals in Tampa require 35% down when comparable properties in Minneapolis are getting approved at 75% LTV.

The numbers tell the story:

New construction has flooded the hot markets, and lenders are pricing in the risk of declining NOI.

When a lender sees a Phoenix deal, they’re thinking: “How many more facilities are coming online in this submarket? What happens to rent rates in 12 months?”

That hesitation costs you capital and rate.

Where Lenders Are Saying YES

Midwest and Northeast markets are showing:

• Rent resilience despite economic headwinds

• Low new construction (undersupply = pricing power)

• Stable fundamentals lenders can underwrite confidently

Chicago, Minneapolis, Detroit, Pittsburgh—these aren’t sexy markets.

But they’re getting better loan terms right now.

One investor just closed a facility outside Detroit:

• 78% LTV

• Rate 0.5% better than comparable Sun Belt deals

• 30-year amortization

• Approved in 18 days

The same guy had a Dallas property rejected by four lenders the month before.

Market selection isn’t just about returns…

It’s about financability.

You can find a “great deal” in an oversupplied market, but if you can’t get favorable financing, your IRR gets crushed by:

• Higher equity requirements

• Elevated interest rates

• Shorter loan terms

• More restrictive covenants

Remember:

A “good” deal with great financing BEATS a “great” deal with terrible financing every time!

If you’re actively looking, ask yourself:

Am I chasing deals where lenders are nervous? (Sun Belt oversupply)

Or targeting markets where capital flows easier? (undersupplied Midwest/Northeast)

The difference isn’t just approval vs. rejection.

It’s $200K less required equity.

0.5% better rate.

Faster closing.

On a $3M deal, that’s massive.

Your Action Plan:

Before you make an offer on your next property:

1. Research new construction pipelines in that submarket

2. Call 2-3 lenders and ask about their appetite for that specific metro

3. Compare their feedback to other markets you’re considering

Their answers will tell you where your capital goes furthest.

Here’s to finding deals that actually close,

Cody

P.S. The investors building the biggest portfolios right now are finding the best financing environments and letting that guide their search. Capital efficiency beats deal hunting every single time.