Overview – Borrowers
This Page Actually Has Some Important Meat To It
Before we go any further, please be assured that C-Loans is totally free for borrowers. Your use doesn’t cost you a penny. We get our revenue from the banks, life companies, conduits and other commercial lenders who participate on C-Loans. Now on to the meat of our message:
Commercial real estate lenders are extremely fickle and unpredictable. One day a certain bank will love making loans on self storage facilities. The next day, usually after suffering a loss, that same bank wouldn't touch a self storage facility with a ten-foot pole. Commercial real estate lending is also very subjective. A bank might turn you down because the Wall Street Journal just ran a negative article that week about one of your three retail tenants. Commercial lenders - especially banks - can also be very moody. When they are in a stingy mood, everything looks like a black hair. No commercial loan is good enough. But when a bank is flush with cash, and the Senior Vice President of Loans is under pressure to close some commercial loans, the bank may overlook a lot of flaws. Last year we had a hungry bank shrug off our borrower’s fairly recent bankruptcy.
Therefore the key to success in finding a good commercial real estate loan is to find the one or two banks out of twenty who are actually in the mood today (it changes every day) to make commercial loans. It’s also true 20% of all bank commercial real estate loan officers close 80% of the deals. Therefore another key to success is to identify which commercial real estate loan officers are hot. It’s not just about choosing the right lender. It’s also about choosing the right loan officer at the right lender.
Finally, there are thousands and thousands of different commercial real estate lenders in the market - including 8,799 banks, 35 major conduits, 75 life companies, 300 commercial private money lenders, a dozen Wall Street nonprime lenders, four commercial mortgage REITS, and 7,165 credit unions. Most of these commercial lenders have their own limited lending area, a minimum loan size, a maximum loan size, a strong preference for only certain commercial property types (multifamily, office, etc.), and a limited number of loan types that they will make (permanent loans, construction loans, SBA loans, bridge loans, etc.). How can any mortal negotiate this incredible maze?
C-Loans was specifically designed with moody and unpredictable commercial lenders in mind. We asked ourselves, “How can we make the hit-and-miss process of getting a commercial real estate loan more efficient?” The owner of C-Loans (me - an attorney and the owner of a commercial hard money mortgage company) spent 16 years and over $1.5 million in programming costs to finally find the secret sauce. The borrower enters his commercial loan into a one-page mini-app. It takes him just four minutes. Then he asks for lenders. The C-Loans System sorts through about 15 filters, screens out the unsuitable lenders, and leaves him with a Suggested Lender List of 20 to 30 suitable lenders. The borrower puts a check mark next to six lenders and then presses submit. Within minutes lenders will be calling him and emailing him with offers. If any of the first six lenders turns him down, he can simply come back to C-Loans and select six more lenders. He keeps this process up until he gets an acceptable offer.
When you use C-Loans, be sure to pay special attention to the Lender Score listed next to each loan officer’s name. This score indicates how diligently that loan officer works his loan app’s and how many deals he has closed for us. The loan officers with the higher Lender Scores appear at the top of the Suggested Lender List.
So does C-Loans work? C-Loans has closed more than 1,000 commercial loans totaling over $1 billion. Bottom line: C-Loans is free, it takes just four minutes to enter your commercial loan, and over 1,000 borrowers just like you have successfully closed commercial real estate loans using our commercial mortgage portal. I strongly urge you to invest a lousy four minutes and get your deal submitted.
George Blackburne III, Esq.