Commercial lenders greatly prefer to make their commercial real estate loans in their own backyard. They know the neighborhoods – which ones are safe, which ones are affluent, and which ones are dangerous.
Another advantage to making commercial real estate loans close to your office is that the lender knows his local markets – which sub-markets are overbuilt and which sub-markets are starving for commercial space. For example, maybe a large state university keeps the nearby commercial vacancy rate below 3%.
In the event of a foreclosure, it is also much easier for a commercial lender to handle the renovation, the leasing, and the property management if the commercial property is located close to the commercial lender’s office.
It is MUCH easier to sell a commercial lender on a funding a commercial loan if the property is located close to his office.
But how do you find commercial lenders located close to the commercial property that you are trying to finance? It’s easy if you use Yahoo Maps.
- Go to http://www.maps.yahoo.com
- Type in the address of the commercial property that you are trying to finance. This will bring up a map of the area immediately surrounding your property.
- In the “Find a Business” field, type in the word, “bank”.
- Little orange icons, representing the location of nearby banks, will appear on your map. If you hover your cursor over one of the icons, the address and phone number of the bank will appear.
- Simply call the bank, ask for a commercial real estate loan officer, and then run the deal by him.
- If none of the nearby banks wants to finance the deal, simply expand your map outwards to see even more banks located slightly further away, until you finally find a home for your deal.