Commercial Loans and Fun Blog

Advertising to the Public for Commercial Loans Doesn't Work

Posted by George Blackburne on Wed, Sep 28, 2011

Over the past 31 years I have invested at least $250,000 in advertising directly to the public for the commercial real estate loans. I have tried postcards, newspaper commercial loans signdisplay ads, classified ads, magazine ads, bulk mail, and individually word-processed letters.

Every such marketing campaign directed at the public for commercial loans was a complete and utter failure.

There are two reasons why.

  1. There are home loan lenders who will refinance your home with no points and no closing costs.  In stark contrast, commercial mortgages commonly require $3,000 to $4,000 appraisals and $2,000 to $3,000 toxic reports, in addition to points, closing costs, and legal fees.  The transaction costs are therefore very high.  As a result, few commercial real estate investors refinance their properties more often than once every five to ten years.  If you try to advertise directly to the public for commercial real estate loans, the chances that your mailer or advertisement will reach a commercial property owner at the exact moment he is in the mood to borrow, in real life, is very slim. 

  2. Commercial property owners almost always call their own bank first before looking elsewhere for a commercial real estate loan.  Rather than respond to your ad in some magazine or newspaper, they will call their buddy at the bank first.

It really doesn't matter why advertising directly to the public for commercial real estate loans doesn't work, as long as you don't waste your precious marketing dollars trying.  Been there.  Done that.  My T-shirt says, "Wasted a Quarter Million Dollars."

So what does work?  Order our 90-minute video training course, "How to Market for Commercial Real Estate Loans."

Did you get some value out of this blog article?  Why not make the Commercial Real Estate Loan Tips blog one of your home pages?  I try to post a new training article every other day.

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Topics: advertising for commercial loans