home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Commercial Mortgage News | CRE Lender Directory | CRE Statistics
Stories about commercial lending on multifamily, office, retail and industrial properties.

It's The Relationship, Stupid

Sales calls to lenders can enhance long-term results

December 31, 2001


If you want to close more commercial mortgage deals, you need to develop a warm and friendly relationship with your lender. It's critical. Why? Because every commercial mortgage deal has a flaw!

Your building is a little old. One lease expires in just two years. Your tenants aren't strong enough. Some rating agency just downgraded the debt of your anchor tenant. Retail is overbuilt in your town. There is always something to nit-pick.

In fact, commercial mortgage finance is maddening for home loan brokers. Residential mortgage bankers are used to cut and dried debt ratios and loan-to-value ratios. The decision rules are bright line tests.

Nothing could be further from the truth when it comes to commercial mortgage underwriting. Credit decisions are made seemingly on a whim. And if the lender is not your friend, the answer will be "No!".

Therefore, if you really want to close more commercial mortgage loans, you need to become buddies with your lender. So how do you do it?

Fifteen years ago I had a buddy who made $400,000 in one year brokering commercial loans to one savings and loan. Back then, $400,0000 was a lot of money. His lender used to really look forward to my buddy's visits - he would bring cocaine and several prostitutes! You won't be surprised to learn that this S&L eventually ended up in bankruptcy and my buddy is a now a drugged out street person - but for a while there he was on top of the world.

Now I am not suggesting that you bring drugs and wild ladies whenever you hand deliver a commercial loan package to a lender, but I do want you to appreciate the importance of your relationship with your lender.

If there is one cardinal rule of success, always hand carry your package to the lender. Even if the lender turns this particular deal down, you will have started to develop a relationship.

In fact, many of the cheapest and most arrogant lenders will turn down your first five loans as a matter of course. My solution was to bring them a package on five separate occasions over a short period of time. I knew this new lender wasn't going to approve any of them yet. I just considered the packages to be sacrificial maidens that had to be slaughtered on his alter. Then, after I had chatted the lender up and developed a relationship, the lender would start approving deals for me.

Man, you should have seen the doggy loans that would get approved just because they were the sixth loan and my lender was feeling guilty for turning down my previous five cherry deals!!! Woof-woof. Grrrrrr. Real dogs.

You can also take your lender out to lunch or out to play golf. Chat him up. Invite him to company parties. Take a genuine interest in his life. I consider my personal banker to be a dear friend and advisor. I consult him often.

So remember, every commercial loan has flaws. The lender has to be willing to ignore these flaws, and he will only do so if he is your buddy. It's the relationship, stupid.

George Blackburne, III is an attorney, lecturer, and owner of the popular commercial mortgage portal, C-Loans.com. He also is the principal of Blackburne & Brown, a $50 million nationwide hard money commercial lender based in Sacramento, California.
hosted by USANow.net

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders