The Greatest Opportunity-Will You Seize It?

Posted by in Commercial Real Estate

Imagine a market where the number of clients dwarfs the number of providers.  Think back to 2003 in the mortgage business when there were so many people wanting to refinance we could not even keep up.  Well, it is like that right now in commercial.  Not because demand is so high, although demand is growing (especially among people buying franchises and going into their own business-more on that next week), but because the banks are still sidelined.  This leaves probably the single biggest opportunity to gain market share that we have seen.

You see, when the residential business was going crazy in 2003 you were not gaining market share, you were just riding the wave.  Right now in commercial-even the big banks you know about are pretty much not lending.  Wells Fargo/Wachovia, Bank of America, I mean, you name the bank, they are quoting still but closing very little.  50% of the loans I close locally in GA were loans that Wachovia took in and after 1-3 months, found some reason to deny the deal.  In fact, I am closing a $1.6 million daycare purchase this week and that loan sat at Wachovia for 4 months before the frustrated Realtors found me.  I have 4 day cares in my pipeline now and the loan that started it all is just closing this week!  The referral leverage in commercial lending is ridiculous!  And the government’s own statistics bear this out as lending amongst the big banks to small businesses has contracted mightily over the last year.  Realtors know this, and referrals are exploding.  It is a small world in commercial and the “players” in the marketplace desperately need proven funding sources.  Let them know you can fund, and the best Realtors in the area start referring you on the spot.  It is HUGE.

And that business is market share, the more you get right now, the bigger your pipeline will become as the market loosens up.  There is no telling how high is high.  So don’t be afraid to get out there and let them know you can close those commercial loans….