This time of year, three of my favorite things come along: the Masters golf tournament; the arrival of Spring; and the Easter holiday. Each of these is wonderful in its own way, and believe it or not, all three teach us something about commercial mortgages.
Spring and Easter are about renewal and about things not quite being what they, at first, appear to be. Just when you think your crapemyrtle tree will never flower again is about the time little pink shoots start to appear. Up North, where I’m originally from, as the last snow melts smidgens of green start to slowly show beneath the last stubborn pieces of ice. This season is about going from seemingly certain death to life again. These occurrences help remind us to throw out those out-dated notions and make room for the new and improved.
The same can be said for the way we finance commercial property for owners of small and mid-sized businesses. Some have the misguided notion that our commercial mortgages are more expensive, higher priced, more complicated, and take longer to close. These are terribly old perceptions, and blatantly false. Nearly every other day, we’re issuing commitment letters while our borrowers’ banks are still mucking around asking menial questions and collecting documents. In fact, we’ve come to joke about our greatest strength being our greatest weakness: we approve deals so fast, numerous unscrupulous borrowers have shopped our approvals only to be matched or barely beaten … completely lost on them was the value our speed and the reduction of borrowing-related anxiety in the first place. That, alone, is reason to work with us, and why we should be charging double for what we do, but I digress …
Plenty of people have told us how their banker said our loans would be so difficult and expensive, only to later switch their deposits to another bank after our closing because they can no longer trust that same banker. Continuing to hold false beliefs about the commercial mortgages we specialize in costs brokers time, prospects, and closings. And, if you’re an owner of a small or mid-sized business or someone who advises them, not working with us costs even more. It’s been said that it’s tough to be a prophet in your own land … this certainly resonates with us as less and less of our loan volume seems to come from Central Florida, which is a shame as we’d like nothing more than to help those in our own community first.
See, more local business owners can afford commercial property when they realize they can still get a great deal, but only put a third to half as much equity in and get longer amortizations with longer fixed terms. Cash is king for business owners, as the adage goes. Many want to own, but they’ve been told by ordinary bankers they’ll have to bring 15% to 30% to the closing and pay for soft and closing costs out of pocket. They’ve also heard that 15 to 20 year amortizations are the norm and that interest rates can only be fixed for 3, 5, 7, or sometimes 10 years, but then their terms will balloon and they’ll have the expense of a future refinance.
Allowing owner-users to take whatever their banker says as Gospel, causes more time to be spent getting properties sold because of a smaller pool of buyers. It also limits the amount of repeat business done as rarely will business owners come back in the future for another deal (like many of ours do) when they just liquidated their savings to accommodate their banker’s desire to reduce HIS risk… while subsequently increasing THEIR risk tying-up valuable capital in their building.
None of this is necessary, and it’s why we call our commercial mortgages “SMARTER FINANCING.” Never before has a nationwide lender led ONLY with the best commercial loan product for business owners EVERY time … it’s so good, we’ve used our loan product ourselves, a fact few bankers could also admit. It’s easy to hold onto dated perceptions, but time marches on and things improve … we’ve literally reengineered our portion of the finance industry with the national awards, clients and referral testimonials to prove it – it’s time more local beliefs about this get renewed.
And what about the Masters? Just what does it have to do with some commercial mortgages? That’s easy. From a distance, both look charming, simple even. But upon closer inspection, those attributes prove deceiving. It’s a much more difficult course than appearances might suggest. Very easy to choose the wrong instrument to accomplish your goals. It also isn’t naturally, quite so green … some “enhancements” make it appear better than it is. And just like with our mortgages, it’s very easy for any banker to claim they can provide the wealth-creation financing that we specialize in, 504 loans, but it isn’t quite that simple. Those with the best overall game win at Augusta and applying the same lesson to commercial mortgages: the Best Overall Value for business owners should win every time and is provided by specialists, right in your backyard.
This Spring, commit to renew your beliefs about the types of commercial mortgages available and give long-held assumptions a test. Things renew for the better every Spring. Email us at firstname.lastname@example.org when we can help you or those you know finance commercial property.
To Our (Yours and Our) Best Year EVER,