Commercial Loans and Fun Blog

Today you are going to learn a ton about the securitization of commercial mortgages.  Then I will explain this huge new development in the CMBS industry.  CMBS stands for commercial mortgage-backed securities.

A mortgage-backed security is a bond secured by a portfolio of mortgages.  These could be residential mortgages or commercial mortgages, but usually not both.  Back in the crazy days leading up to the 2008 crash, there were some asset-backed securities that were backed by a mixed collection of car loans, credit card paper, aircraft loans, scratch-and-dent residential loans, and subprime commercial loans.

A scratch-and-dent loan is one that is flawed and has been kicked out of the pool of loans that some sponsor has assembled.  Perhaps the debt ratio was too high.  Perhaps the home lacked a proper foundation.  Back in the day, Bayview Financial used to place some of its subprime commercial loans into such mixed collateral portfolios to raise the average yield and to lower the average loan-to-value ratio.  I once blogged that I thought Bayview's old commercial loans were actually quite good loans.

A bond is just a garden variety promissory note whereby some borrower promises to pay back some money to some investor.  "I, Wells Fargo Bank Commercial Trust #2015-3, promise to pay the little old widow, Francine Investor, the sum of $5 million at 4.25% interest and with monthly payments of $27,086 per month..."  Bonds are typically issued by companies or trusts, as opposed to by individuals.  In this example, the bond was issued by a trust managed by Wells Fargo Bank.

Now in this example, Francine Investor's bond is backed by a portfolio of commercial mortgages.  The typical CMBS portfolio contains $1 billion to $2 billion in commercial first mortgages.  Francine might have invested $100,000 - along with a ton of other investors - into this $2 billion bond.  The trustee of the trust - in this case Wells Fargo Bank - services the 200 or so commercial mortgages in the trust.  If any of the borrowers default, the bank has strict instructions to foreclose on behalf of Francine and the other investors.

But not all investors are created equal.  Some might be little old ladies with almost no tolerance of risk.  Others might be well heeled college endowments, who can afford to take some risk.  Yale University's endowment fund is said to be as rich as Croesus.  Others investors might be go-go investors, like the filthy rich owner of a life insurance company who we will call Billy Life, who love to take big risks for the chance of earning 20%.

Now the big bank or the big mortgage company bringing the offering to the market (peddling the mortgage-backed bonds) is known as the sponsor.  Sponsors securitize these commercial mortgages for a reason; i.e., to make a profit.  The sponsors have learned that they can take a 4.25% average portfolio yield and sell slices of the yield off to different groups of risk-takers and still have a big chunk of the yield still left over for themselves.  These various slices of the yield are called tranches.  

Let's continue with our example to make this tranche concept more clear.  Now Francine Investor, the widow, depends on her bond payment to buy groceries, so she cannot afford any risk.  Therefore Francine, along with other widows like her, cuts a deal with the Sponsor that goes like this:  "Even though the average yield on this CMBS portfolio is 4.25%, I'll accept just 2.75%; but in return for this lower yield, I want to be the first investor paid.  In other words, I get my full 2.75% yield before any riskier investors get a dime."  Francine is the buyer of the AAA-rated tranche.

Now Yale University's endowment fund can afford to take a little bit of risk.  Yale cuts a deal with the sponsor that might go like this, "I will accept just 3.40%, and I agree to the second tranche to be paid.  In other words, Francine and her fellow widows get paid first.  Only if there is interest income left over does Yale get a penny."  We'll call this the BBB-rated tranche, which is still considered investment grade.

Billy Life, the life company owner and gambler, might cut a deal with the sponsor as follows:  "I want a 20% yield, and I'll agree to be the last one paid."  We'll call Billy Life the B-piece buyer.  Securities rated lower than BBB are not considered to be investment grade.  They are very risky.   How can the sponsor afford to pay Billy 20% when its only earning 4.25%?  Answer:  Billy's piece might only be $300 million on a $2 billion offering, and don't forget that the Sponsor is earning an interest rate spread on everyone else's investment.  The sponsor is picking up the difference between 4.25% and 2.75% on Francine's tranche, and it is picking up the difference between 4.25% and 3.40% on Yale's investment. A 1.5% spread on $1.2 billion (the AAA-rated tranche) is a lot of money.

In real life, there may be a dozen different tranches on a $2 billion CMBS offering.  We are finally done with my explanation of the securitization process.

Now let me describe what happened during the Great Recession.  Francine emerged as a genius.  Despite commercial real estate plunging 45%, the holders of Francine's tranche got paid in full - 100% of principal and interest.  Yale lost all of its interest income and took a 20% haircut off of its principal.  And Billy Life?  He got nada.

Lots and lots of elderly investors and pension plans took huge losses.  One of the many reasons was because the originators of commercial mortgages were sticking deals of 80% to 82% loan-to-value into the securitization trust!  Some of these loans were interest-only for the first three years, and others depended on projected rent increases in order to service the loan.  These loans were absurdly risky.

Congress therefore, in the Dodd-Frank Act, changed the rules.  No longer could originators throw risky loans into these pools and then walk away, risk-free and counting their dough.  Beginning in late-2016, CMBS sponsors now have to retain 5% of the mortgage portfolios.  This cast a scary cloud over the CMBS industry, and originations plummeted.  I was therefore thrilled to see the following announcement from Wells Fargo Bank.

"Wells Fargo teamed up with Bank of America and Morgan Stanley to lead the first US Risk Retention compliant conduit transaction (WFCM 2016-BNK1). The new regulations, which do not formally go into effect until December 24, 2016, will require issuers to retain a 5% economic interest in new CMBS transactions."

The good news?  With Wells Fargo Bank, Bank of America, and Morgan Stanley keeping some serious skin the game, this new CMBS offering sold like hotcakes this month and at lower than expected yields.

Have you checked out the brand new CommercialMortgage.com yet?  Here's the best way to understand this competing portal to C-Loans.com.  We have a guy who calls banks every day and invites them to join C-Loans.com.  Those that say no, we add to CommercialMortgage.com.  Because most  bankers are old fuddy-duddies, many more banks say no than yes.  CommercialMortgage.com is therefore packed with four times more lenders than C-Loans.com.

Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off?

Got a squeeky-clean commercial loan request that deserves to be funded by a life company, conduit, or bank?

Just doing some general research on commercial loans?

Want to receive free training in commercial real estate finance?

Got a buddy or a co-worker who would benefit from learning commercial real estate finance?

Today we are going to talk about peer-to-peer lending, crowd-funding, FinTech, and shadow banking. Then I will explain why you should care.

Peer-to-peer lending is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers. It is sometimes abbreviated P2P lending. The important thing to understand about peer-to-peer lending is that there is no bank involved. A single private investor is lending money directly to a private borrower.

Crowd-funding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

The difference between peer-to-peer lending and crowd-funding is that P2P lending typically involves small loan amounts ($5,000 to $50,000), and just one investor lends the entire loan amount. Crowd-funding can sometimes involve much larger amounts, where lots of different investors chip in a little bit to make the loan or the equity investment.

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In the doctor’s office, two patients are talking. "You know, I had an appendectomy last month, and the doctor left a sponge in me by mistake." "A sponge!" exclaims the other. "Does it hurt much?" "No, there’s no pain at all," says the first, "but boy, do I ever get thirsty!"

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FinTech is short for financial technology. FinTech is a line of business based on using software to provide financial services. Financial technology companies are generally startups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software. Peer-to-peer lenders and crowd-funding companies are all examples of FinTech companies.

My own commercial mortgage portal, C-Loans.com, is an example of a FinTech company. This week I launched a new commercial mortgage portal, different from C-Loans.com,  called CommercialMortgage.com. It’s a handsome site and very easy to use.  You should check it out.

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It’s almost football season. Here are some famous and funny quotes:

"Gentlemen, it is better to have died a small boy than to fumble the football." -- John Heisman

"A school without football is in danger of deteriorating into a medieval study hall." -- Frank Leahy / Notre Dame

"I don't expect to win enough games to be put on NCAA probation. I just want to win enough to warrant an investigation." -- Bob Devaney / Nebraska

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Google defines shadow banking as follows: A shadow banking system refers to the financial intermediaries involved in facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight.

When Blackburne & Sons arranges a hard money loan, we are creating credit without banking oversight. (There is plenty of state oversight. Geesch.) When LendingClub.com arranges a $25,000 start-up loan to a recent immigrant wishing to buy and equip a truck to serve lumpia and other fast food at a worksite, this is another example of shadow banking. In a moment I will explain why you should care about peer-to-peer lending, crowd-funding, FinTech, and the shadow banking system.

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"Football is not a contact sport, it is a collision sport. Dancing is a contact sport." -- Duffy Daugherty / Michigan State

After USC lost 51-0 to Notre Dame, his post-game message to his team was, "All those who need showers, take them." -- John McKay / USC

Ohio State's Urban Meyer on one of his players: "He doesn't know the meaning of the word fear. In fact, I just saw his grades, and he doesn't know the meaning of a lot of words.”

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Here’s why you should care about the explosive growth of the shadow banking system: When an economy overheats and inflation begins to soar out of control, the Fed has a number of tools to cool down the banking system. It can raise the reserve requirement. “Hey, you bankers out there, we’re worried about too much credit being created. As of right now, you all have to increase your reserve account at the Fed. This means you will have less dough to lend.”

The Fed can also engage in open market operations, selling off some its enormous hoard ($4.5 trillion?) of government bonds, corporate bonds, and mortgage-backed securities. Investors have to take money out their banks to buy these securities, thereby reducing the liquidity in the system and cooling off the creation of new bank loans. Lastly, the Fed can raise interest rates, thereby making loans less attractive to borrowers.

“Okay, so our fire truck is all set to douse any hyper-inflationary fire, right?” Uh, what about the shadow banking system – those P2P lenders, crowd-funders, and hard money lenders? In 2012, Chinese monetary authorities tried to cool down their economy by raising the reserve requirement and interest rates. The move didn’t work so well. Chinese property speculators just went around the banks and took out private loans to buy their tower apartment units.

My point is this: If inflation were to ever take off again, which is far-far from certain to happen in our lifetimes, inflation could quickly get away from the Fed. Speculators could simply go around the banks using FinTech and keep borrowing. For example, as the owner of Blackburne & Sons, I don’t give a hoot if the Fed raises the reserve requirement for banks. It just means more sweet loans for Blackburne & Sons to make. I have no idea what the exact number is, and I am just pulling a number out of my tush, but I wouldn’t fall off my chair in surprise if global investors didn’t have as much as $75 trillion dollars sitting around under-invested.

The reason I wrote about this subject today is because my instincts are screaming at me to syndicate the purchase of more prime, multi-tenant industrial buildings in California gateway cities – and to buy that property with all cash. No debt. Zip-zilch-zero. Nada.

(I originally wrote this piece as my monthly Investor Letter.)  With zero debt, we are protected either way. If deflation rules the roost, and we only earn 4.5% to 5.0% after operating and organizational expenses (the most likely scenario), we are still earning far more than what CD are yielding. On the other hand, if inflation takes off and/or industrial rents sky rocket, we would be sitting in clover.

It will be interesting to see how the markets react when the Fed finally raises interest rates. The investment world could easily interpret such an action as a sign that the U.S. economy is now completely healed. They could go rushing to buy commercial-investment real estate using today’s low mortgage rates. I’m just sayin’.

This training article actually matters to a great many of you, whether you are arranging commercial loans or selling income property across state lines.

Now as you probably know, I am an attorney, licensed in California and Indiana.  Now let's suppose that I had a long-time Indiana law client who had a contract dispute with an Illinois company, and my client wanted me to represent him in Illinois in a suit against this Illinois company.  There is a legal procedure for me to do this called "appearing pro hoc vice."

Pro hoc vice (pronounced pro-hock-veechey) is a Latin term that means "for this occasion" or "for this event."  It is a legal term usually referring to a practice in common law jurisdictions, whereby a lawyer who has not been admitted to practice in a certain state is allowed to participate in a particular case in that state.  Now I would be required to "associate in" an Illinois attorney to supervise me and to make sure that I complied with Illinois state law and the local rules.

I promise that the relevance of this article to you will be made clear in the next paragraph. The relevance to commercial real estate brokers selling commercial-investment property will be made clear in the paragraph after that.

Okay, now let's suppose that you have a long-time Utah loan client who wants you to arrange a commercial loan for him on a property in Arizona - a state where a commercial loan broker needs an Arizona mortgage broker's license.  Can you legally arrange this loan?  Answer:  Only if you associate in an Arizona mortgage broker (and pay him $500 or so).

Now if you are a commercial real estate broker, legally licensed in Utah, and you have a long-time Utah investor client wishing to buy a commercial-investment property in Arizona, you will need to associate in a legally licensed Arizona real estate broker.  In the parlance of commercial brokerage, you will need to have him serve as your broker of record.  But, if you do it right, I am pretty sure that you may legally help your long-time Utah client buy a commercial-investment property in Arizona.

The reason this subject came to mind today is because I received this week an interesting email from a company advertising to commercial brokers, offering to serve as their broker of record.  Now I had never heard of a broker of record service before, but when I googled, "broker of record services", I found quite a few companies offering this service.

Now this one company charged the higher of $1,500 or 3% of the total commission; e.g., 3% of 6%.  It sounded like a reasonable price to me to pay to keep your tush out of jail.

Keep looking for the contact information (the contents of a business card) of any banker making commercial real estate loans.  We'll trade you that information for a free directory of 2,000 commercial real estate lenders.

Have you created a link to C-Loans.com on your real estate web site yet?  The links should say "Commercial Loans" or "Commercial Mortgages" or "Commercial Real Estate Loans" or "Need a Commercial Mortgage?"

Remember, the home page of C-Loans.com is programmed to automatically capture the referring URL (the address of your web site) and to print it at the bottom of the corresponding C-Loans application.  When the deal closes, we look up the lucky guy who put the link to C-Loans.com on his website and notify him of the big referral fee check waiting for him.  We once paid Alan Dunn of Spydercube.com a $21,250 referral fee on a $17 million land loan application that came from his site.

Do you need a lender who will allow a negative cash flow?  Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.?  Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant?

Do you have a squeeky clean commercial mortgage loan that deserves to be financed by a life company, conduit, or a commercial bank?

I keep telling you commercial brokers that there is no easier way to meet high-net-worth investors than to open up a little commercial mortgage brokerage operation (a desk and a phone) in your real estate office.

Want to receive free training in commercial real estate finance?

Got a buddy or a co-worker who would benefit from learning commercial real estate finance?

In addition to owning C-Loans.com, I also own Blackburne & Sons, a $50 million private money commercial mortgage company that makes hard money permanent loans, as well as just bridge loans.  This reduces the APR to your borrowers considerably.

Our best loan officer is Alicia Gandy, a lovely lady who has been with us now for 17 wonderful years.  Alicia is such a big producer and such a diligent go-getter that we call her the Loan Goddess.  Alicia taught me a clever marketing technique this week, a virtually cost-free technique that could be used by a commercial real estate salesman, a leasing agent, a property manager, as well as any commercial mortgage broker.

It's summer time.  Many people are out hiking, biking, boating, or doing some other fun outdoor activity.  The last thing most of us want to do is to work really hard during the final few weeks of the summer.   Therefore business here at Blackburne & Sons is pretty slow.

Instead of goofing off, however, Alicia went out and killed something this week.  Alicia called her twelve best brokers and complained, "Hey, I'm dying here!  I have no business.  If you bring me a commercial loan right now, your deal will be at the top of my stack, and I'll work my tail off on it."  Each of her best brokers complained that they didn't have anything for her... and yet within 24 hours, Alicia had three new deals in the door!

"Gee, George, this is so obvious that its like the moron with the headphones repeating, "Breath in, breath out."  Yeah, yeah... but when was the last time that you made twelve outgoing calls to your best brokers?  That's what I thought.

Here's an idea:  (1) Pull out a file folder right now and label it, "Best Brokers."  (2)  Take out a yellow legal pad and write down the names and phone numbers of your twelve best repeat customers.  (3)  Then, whenever you are slow, maybe you call these twelve special customers and petition for deals.

I have been using the term, "best brokers".  As a lender, commercial loan brokers are one of the best repeat sources for commercial real estate loans.  But if you are a commercial real estate salesman (properly called a commercial broker, even if you are only a salesman and not a broker), your twelve best repeat customers will probably be wealthy commercial real estate investors.  If you are a leasing agent, your best repeat customers may be the owners of rapidly growing companies.  But you get the concept.  All of us have a dozen or so repeat customers who make up a big part of our annual sales, so get off the dime and dial them for dollars.  (How about that for staying consistent with my metaphor - dime and dollar?  Get it?  Ha-ha!)

Have you created a link (or 20 links) to C-Loans.com on your real estate web site yet?  The links should say "Commercial Loans" or "Commercial Mortgages" or "Commercial Real Estate Loans" or "Need a Commercial Mortgage?"

Remember, the home page of C-Loans.com is programmed to automatically capture the referring URL (the address of your web site) and to print it at the bottom of the corresponding C-Loans application.  When the deal closes, we look up the lucky guy who put the link (or - even smarter - 20 links) to C-Loans.com on his website and notify him of the big referral fee check waiting for him.  We once paid Alan Dunn of Spydercube.com a $21,250 referral fee on a $17 million land loan application that came from his site.

Now be sure to note:  You do not need any special partner number.  You do not need to notify us.  You could create this link at 3:00 a.m. tonight, or better yet, create 20 links.  By the way, Alan Dunn was asleep when this $17 million loan application was sent over from his site to C-Loans.com!  "Asleep?  How could you possibly know this, George?"  In truth, I don't; but he certainly could have been asleep, and it makes for a great story.  Ha-ha!  These 20 links work automatically while you're sleeping, playing golf, or cuddled up with your honey.  Notice the subtle upsell to 20 links rather than just one?  Hey Dad, can I have $50?  Twenty dollars???  What do you need $10 for?

Keep looking for the contact information (the contents of a business card) of any banker making commercial real estate loans.  We'll trade you that information for a free directory of 2,000 commercial real estate lenders.

Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow?  Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.?

Do you have a squeeky clean commercial mortgage loan that deserves to be financed by a life company, conduit, or a commercial bank?

If you are a commercial real estate broker (you sell commercial-investment real estate), and your company does not have a small commercial mortgage brokerage operation (desk and phone), you are missing out on a huge opportunity.  There is no easier way to meet high-net-worth investors than to be a commercial mortgage broker.  Just about every borrower responding to your ads will be a high-net-worth commercial real estate investor.

Want to receive free training in commercial real estate finance?

Got a buddy or a co-worker who would benefit from learning commercial real estate finance?  I write this blog to train my two sons, George IV and Tom, in commercial real estate finance.  Long after I have gone to that huge commercial real estate loan closing in the sky, my sons will be able to review my training on any commercial real estate finance (CREF) subject by going to a search engine and typing, "C-Loans mezzanine loans." 

Today I am going to remind you of a marketing principle that is applicable to many fields of business, not just to commercial real estate finance (CREF).  If you are looking for leads, advertise to the guys who are advertising.

In prior training articles about marketing for commercial loans, I have made the following points:

1. Advertising directly to the public for commercial real estate loans does not work.  It's cheap to refinance your home, so many borrowers do it every few years.  In stark contrast, obtaining a new commercial real estate loan is very, very expensive.  There is the cost of the appraisal, the cost of the toxic report, the loan points, and the legal fees.  Commercial real estate investors therefore refinance their buildings as seldom as possible.  The net result is that the chances of your advertising postcard or snail mail newsletter arriving at the exact moment when a commercial mortgage borrower is looking for a new commercial is less than one in a one hundred thousand (1/100,000).  Be smart.  Read this last paragraph again.
   
   

1. The smart commercial loan marketer therefore advertises to those guys and ladies who, because of their job, are in a position to send you referrals of their turndowns.  Examples includes commercial bankers, commercial real estate brokers, property management companies, other commercial real estate lenders like conduits, credit unions, and hard money lenders; attorneys, accountants, estate planners (life insurance salesmen), residential real estate agents, etc.
   
   
2.  But not every referral source is the same.  Some are better than others.  If your advertising costs money (as opposed to email newsletters), focus your advertising dollars on those guys who are seeing a lot of commercial loan requests.  Makes sense, huh?  As a general rule, I would say that (#1) commercial bankers and (#2) other commercial real estate lenders probably see the most commercial loan requests on a weekly basis.

Now we are getting to the point of today's training session.  The more commercial loans that a referral source has crossing his desk, the more turndowns he can refer your way.  At any given moment, who is seeing the most commercial loan requests?  The company with the most commercial loan turndowns to refer you will usually be the company paying the most for commercial loan advertising at the moment.  Therefore if you see a bank or a commercial mortgage company advertising for commercial loans, be sure to contact them and beg them for their turndowns.

In the old days such commercial loan advertising would appear as a display advertisement in the newspaper or in some glossy real estate magazine, like the National Real Estate Investor.  Modernly, you will see the most commercial loan advertising on Google.  If you do a search for "commercial real estate loans" on Google, you will see four Sponsored Ads at the top of the results page, lead off by an ad from LendingTree.  These are the guys you want to chase for their commercial mortgage turndowns.  There are also commercial real estate e-zines.  If you see an advertisement for commercial loans in one of them, be sure to hit them up for their commercial mortgage turndowns.

But how do you do it?  How do you advertise to some strange loan officer at some strange commercial lender?  (1) Call the lender, introduce yourself and your commercial mortgage brokerage company; and (2) Follow up with a snail mail letter, including two business cards, thanking him for his time and asking for his commercial loan turndowns; and (3) Every week send him a funny joke, an entertaining picture or cartoon, an interesting business article, or a cool random story, along with a hand-written note asking for his commercial loan turndowns, as well as three business cards every time.  Don't expect him to keep your business cards around for more than a couple of days.  The hope here is that he will hand your card out to declined commercial loan applicants.

Bottom line:  Advertise to the guys who are advertising.

Qualified commercial mortgage brokers can now buy commercial mortgage leads for just $1 to $9 apiece upfront, plus a 37.5 basis points if the deal closes.

C-Loans, Inc. once paid Alan Dunn a referral fee of $21,250 for a $17 million commercial loan application that came from his site to C-Loans while Alan was asleep!  All he did was create a "Commercial Loans" link and point it to C-Loans.com.  That's it.  There was no fancy computer code to write or special partnership numbers to imbed.  C-Loans.com is programmed to automatically capture the URL of the last site visited by the borrower before coming to C-Loans.  That URL is printed at the bottom of every loan application.  If the deal closes, we look up who owns that referring site and give them the good news.

Keep looking for the contact information of a commercial banker making commercial real estate loans.  You can trade that information for a database of over 2,000 commercial real estate lenders.

For just $549 you can buy our famous 9-hour video course, How to Broker Commercial Loans.  I say "famous" because a sizeable percentage of all practicing commercial mortgage brokers learned the business from this course.  We also now throw in our 5-hour audio course, Intermediate Commercial Mortgage Finance.  Finally you will understand all of the strange terminology and financial ratios.  Your confidence will soar.

Is your client's company losing money?  Does your commercial mortgage borrower have less-than-stellar credit?  Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant? Do all of your commercial leases run out in the next 18 months? Do you need a lender who will allow a negative cash flow? Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.? Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off?

Do you have an excellent commercial loan request that deserves to be financed by a life company, conduit, or commercial bank?

Are you a commercial loan officer for a bank or other commercial lender?  Want custom-fitted commercial loan requests delivered directly to your email box?

Want to receive free training in commercial real estate finance?

Got a buddy or a co-worker who would benefit from learning commercial real estate finance?