Commercial loans were soooo easy to find after the Great Recession. It was like shooting ducks in a barrel. Banks had stopped making commercial real estate loans, and many were even offering their existing borrowers a huge discount to pay their commercial loans off early. These were called discounted pay-offs (DPO's), and my private money commercial mortgage company, Blackburne & Sons, must have financed sixty DPO's in the last three years. Man, do I ever miss those days.
But like a forest mending itself after a fire, the commercial mortgage market is returning to health. A-quality commercial mortgage requests are once again getting financed by banks, rather than by private money (hard money) lenders.
Wall Street subprime lenders have even returned to the market. Most have joined C-Loans.com, and you can find them by inputting your commercial loans - not into one of our gray buttons - but rather into the six-part (but still immensely easy) automated and free commercial loan submission system found at the top of our home page.
The return of Wall Street subprime commercial loans - now called nonprime commercial loans - doesn't surprise me. I always thought that the subprime commercial loans made in 2004, 2005, and 2006 were perfectly fine loans. Sure, commercial real estate fell by 45% during the Great Recession, but not because a ton of Wall Street subprime commercial loans defaulted. I don't know the actual numbers, but I would be surprised if more than 15% to 18% of these loans eventually came back in foreclosure.
Commercial real estate fell because commercial property investors were frightened. The economy contracted. GDP fell. There was a genuine panic that a deflationary vortex would start - a cycle where companies started to fail because demand was weak, which would lead to more layoff's, which would lead to even weaker demand, which would cause even more companies to fail, which would leads to even more layoff's...
But commercial real estate did NOT fall 45% because a ton of Wall Street subprime commercial loans went bad. The vast majority of these loans were good loans, loans that Blackburne & Sons would have loved to have in its portfolio.
So Wall Street is now back and poaching in my fishing pond. It's largely the same product - commercial real estate loans that are just barely too flawed for a bank. Only the name has changed. These loans are no longer called subprime commercial loans. They are called nonprime commercial loans.
Just remember: You can find them almost all of these prodigal Wall Street nonprime commercial lenders on C-Loans.com.
Commercial Mortgage Bankers: You should be calling on commercial real estate loan officers at your nearby commercial banks asking for their turndowns. Remember, the typical commercial loan officer turns down seven or eight commercial loan applications for every one that he approves. If you meet a banker who makes commercial loans, be sure to trade the contents of his business card for a free directory of 2,000+ commercial real estate lenders.
Because of all of the ballooning commercial loans, the next three years promises to be the most profitable time in the history of commercial real estate finance. It is a great time to be a commercial mortgage broker. It's time that you actually learned the profession, as opposed to just winging it.
How would you like to get the above $549 video training course for free? Got a banker buddy who makes commercial loans? Just click on the red button below and forward the page to him. If he joins C-Loans, you'll earn a free training course of your choice (you may want to become a hard money lender yourself), plus $250 every time he closes a deal for us.
The wise commercial mortgage banker submits every commercial loan request to Blackburne & Sons, even if he also submits it to a few banks. At no cost, we'll issue a Loan Approval Letter. You can then show that approval to your banker. "You can beat this, right Mr. Banker?" Just like girls are attracted to boys with a pretty girl on their arm, bankers are attracted to commercial loans that other lenders have approved. So give us a chance to issue an approval for your borrower. Then, if your banker suddenly leaves you standing there at the altar looking stupid (that never happens, right), you and your borrower can always fall back on Blackburne & Sons.