100% Medical Program Helped Snag a Deal! tagged:

100% Medical Program Helped Snag a Deal!

Posted by in Brian's Blog, Commercial Real Estate, New Programs!, Tip Of The Week

It is not the norm for me to come up against competition on commercial scenarios right now, most people that I close start with me because their local bank that they do all their banking with turns them down and they don’t know where to turn, and they get referred to me. These are not bad borrowers, their bank is just not lending however they have been turned down, so they are nervous. My confidence and focus on the fact that I CAN close them gets them in the door-it is not about rate usually.

Every once in a while though, you get a deal where a local bank or lender is involved, usually, their rate is no better and I can still win the day. But I just won a deal where the borrower was being quoted a smoking rate. In fact, I have not seen an SBA quote so competitive this year. It was a dentist buying another dentist’s practice-business only transaction. Strong deal, both businesses were profitable, strong scores, etc. His bank was giving him prime plus 1% on an SBA 7A deal with only 15% down, quarterly adjustable, 10 year amortization. Now that is typical 7A terms except for the rate-just smoking rate at 1% over prime. Knowing I could not beat the rate, I focused on terms. I got him 100% financing on a 10 year fixed rate! Granted, the fixed rate was in the 8’s, but the no money down feature and the fixed feature sold him. They went with me, and we should close that loan out the first half of next month.

Over and over I tell my guys, rate does not matter. This is just another example of this. Talk to your client, ask him the key questions, find out what he really wants. When talking to him, he said the biggest thing he wanted was the least amount of money down. He was hoping I could get him 90%, (which is doable on an SBA deal with Real estate but not business only), hard to get less than zero % down! Focus on the client’s needs and you will win the day and the deals!