At the end of this article, I am going to make you the most favorable offer of your life. It's like Jennifer Anniston asking you if it would okay if she kissed you. Is this a trick question?
Placing a commercial loan is like finding a wife for your best friend. You can introduce your buddy to a lovely lady, who is a solid 8 to your buddy's 6. She's one year younger, two inches shorter, slender, and the same religion as your buddy. They go out on a date, she digs him, and ... he's just not feeling it. Go figure.
Placing a commercial loan can be very similar. You take a small commercial loan to a small commercial bank, located just two miles from the subject property. Your borrower has excellent credit and a net worth 1.35 times the size of the commercial loan amount. (The Net-Worth-to-Loan-Size Ratio says the borrower's net worth must be at least as large as the loan amount.) But the bank's just not feeling it.
The solution? Don't be dependent on just five or six banks. If you want to close more commercial loans, develop a large databank of banks. Then, when you are trying to place a commercial loan, you can quickly offer it to two-dozen different banks at the same time. The first bank to step up wins the commercial loan.
I own Blackburne & Sons (est. 1980), a hard money commercial mortgage company. We don't try to keep track of which of our 1,200 private mortgage investors has money to invest today. We don't try to remember which of our investors would invest in a mobile home park in Fresno, California. Instead, we blast out the Investment Bulletin to all 1,200 of our investors. The first 15 investors to step up and commit to participate get the commercial loan.
Banks can find all kinds of reasons not to approve a commercial loan. They could be fully-invested. They could be over-concentrated in mobile home parks, even though they love them. The commercial bank could have just taken a loss on a mobile home park commercial loan, and now the bank is especially leery about lending on mobile home parks. Your loan officer at this particular bank could be a complete wimp in front of Loan Committee. "God has never stopped inventing new and unique ways to kill commercial loans." -- George Blackburne III (1982)
Do you know why I get to play golf four times per week, when its not snowing in frigid Indiana? I never rely on a handful of commercial lenders or private investors to fund my commercial loans. I always put my commercial loans out for sale to a huge list of commercial lenders and/or private investors. "I'm sorry, Mr. First-Time-Investor, but that deal is already sold out. I'll be happy to put you down as a backup, but the truth is that you're the 7th backup. You probably won't get into this particular commercial loan." Talk about the opposite of high-pressure sales tactics ...
Okay, let's talk about your needs. You need to have a huge databank of commercial lenders to whom to offer your commercial loans.
I'll trade you just one commercial banker making commercial loans for a list of 2,000 commercial lenders. In 17 more seconds, Jennfier Anniston is walking away and kissing the next guy she sees. (She is trying to make her boyfriend jealous, and if she accidentally meets a good kisser in the process ... after all she's not married.)
I'm not asking you to introduce me to your best banker. Your 5th best banker will work just fine. Sixteen - 15 - 14.
"But George, if I tell you about a banker, every broker on the internet will be able to find him."
Of course C-Loans, Inc. will solict this banker to join the C-Loans System as a lender, but did you know that only one out of every twenty bankers that we solict ever joins C-Loans? And the process usually takes at least two years. The chances that you are ever going to lose a commercial loan because you introduced us to your fifth best banker is something like one in several million.
Here's the real reason why we are willing to trade 2,000 commercial lenders for your one lousy little banker (your fifth best banker), who is only making commercial loans in the three counties surrounding the eighth largest city in Oklahoma: We solicit these bankers for their turndowns. "I'm sorry, Mr. Jones, but your commercial loan is too large - too small - too far away for us. Have you tried entering your commercial loan into C-Loans.com?"
Jennifer Anniston is getting ready to walk away. 5-4-3 ...