{"id":608,"date":"2022-03-15T16:37:19","date_gmt":"2022-03-15T21:37:19","guid":{"rendered":"http:\/\/agcus.net\/?p=608"},"modified":"2026-02-04T19:13:27","modified_gmt":"2026-02-05T01:13:27","slug":"now-is-the-time-to-contact-banks-for-their-commercial-loan-turndowns","status":"publish","type":"post","link":"http:\/\/streamapse.com\/TAR\/?p=608","title":{"rendered":"Now Is The Time To Contact Banks For Their Commercial Loan Turndowns"},"content":{"rendered":"

Quick funny:\u00a0 Tomorrow is the National Home-School Tornado Drill. \u00a0Lock your kids in the basement until you give the all clear. \u00a0You’re welcome. \u00a0Haha!<\/em><\/p>\n

For the past two weeks, we have been discussing the fact that just about every commercial bank in the country is out of the commercial mortgage market<\/a>.<\/p>\n

The CMBS market remains broken for now too, although the Fed’s recent purchase of billions of dollars worth of commercial mortgage-backed securities has helped to prevent a complete collapse of the CMBS market. \u00a0CMBS lenders will likely survive to lend again in a year or so.<\/p>\n

ABS lenders are also out of the market<\/a>. \u00a0You will recall that ABS<\/strong><\/em> stands for asset-backed securities, which are smaller securitizations of an eclectic collection of debt obligations. \u00a0An ABS pool might contain subprime auto loans, scratch-and-dent residential loans<\/strong><\/em> that have been kicked out of some regular securitization pools, aircraft loans and leases, equipment loans and leases, credit card loans, movie residuals, and non-prime commercial loans.<\/p>\n

As a result of recent huge declines in the value of asset-backed securities, ABS commercial real estate lenders; like Silverhill, Velocity, and Cherrywood; are now out of the market right now.<\/p>\n

We also discussed how several hundred commercial hard money lenders nationwide are either out of the commercial loan market or have completely closed their doors. \u00a0The slaughter has been particularly bloody among those hard money shops that use a mortgage pool to fund their loans.<\/p>\n

As soon as the coronavirus crash started, most of their private investors lined up to withdraw their money from these hard money mortgage funds. \u00a0This left these hard money shops with no new money with which to lend. \u00a0Suddenly they had zero loan fee income coming in, so they didn’t have enough money to make payroll and to keep their doors open.<\/p>\n

Bottom line: \u00a0When a borrower goes out searching for a commercial loan today, he is going to get turned away by just about every lender. \u00a0<\/strong><\/p>\n

Isn’t this wonderful?! \u00a0As a commercial loan broker, you make your dough helping borrowers find commercial lenders. \u00a0When every bank in the country was making commercial loans, most borrowers didn’t need you. \u00a0Now they do.<\/p>\n

Commercial real loan officers, working for banks, are telling their prospective borrowers, “I’m sorry, but our bank is not making any new commercial real estate loans right now.” \u00a0In other words, the bank is out of the market.<\/p>\n

I can also tell you that, after having survived the S&L Crisis, the Dot-Com Meltdown, and the Great Recession, most commercial banks are going to remain out of the market for several years. \u00a0Whenever banks bolt to their hidey-holes, they come out very, very timidly.<\/p>\n

Those of you who have read and understood my articles about how the Multiplier Effect can sometimes work in reverse should be able to understand the huge deflationary pressures building in the U.S., as well as China. \u00a0You may not want to go “all-in” on the stock market, even though Gilead Sciences announced last night that their new therapeutic drug for the coronavirus is doing very well in a large trial. \u00a0That huge deflationary tidal wave from China is still coming<\/a>. \u00a0Chinese small business owners have been traumatized, and a new drug does little to immediately restore their savings accounts.<\/p>\n

You think it’s bad now? \u00a0In 20 years, our country will be run by people home-schooled by day drinkers…<\/p>\n

Since banks are turning down every new commercial borrower, it is therefore an incredible time to call bankers for their commercial mortgage turndowns.<\/strong> \u00a0The bankers will be grateful to have someone – anyone<\/em> – to service their frustrated clients.<\/p>\n

It also makes good sense to also tell these bankers that you will not<\/strong><\/em> be taking their good customers to some competing bank. \u00a0“All of your bank competitors are out of the market too.” \u00a0Tell them that you have some reasonably priced private money with no prepayment penalty<\/a>.<\/p>\n

Make sure you gather the contact information on every commercial real estate loan officer working for a bank that you meet. \u00a0 You can trade each bank commercial loan officer for either a free commercial mortgage underwriting manual<\/a>, a free loan broker fee agreement<\/a>, a free commercial mortgage marketing course<\/a>, or a free regional copy of The Blackburne List<\/a> containing 750 commercial lenders.<\/p>\n

These trades are made under the Honor System. \u00a0Please don’t cheat. \u00a0You can trade trade a banker for ONE of the above four goodies. \u00a0If you want all four goodies, please find me four bankers.<\/p>\n

And this guy must work for a bank or credit union. \u00a0ABC Bank<\/strong><\/em>. \u00a0First National Bank<\/strong><\/em>. \u00a0Helloooo? \u00a0Banks have huge metal vaults with tens of thousands of dollars in cash on hand, right? \u00a0Mortgage companies are NOT banks. \u00a0You<\/em><\/strong> are not a commercial loan officer working for a bank. \u00a0You can’t fill in your own name. \u00a0Nice try. \u00a0Sorry.<\/p>\n

When this is over, what meeting do I attend first… Weight Watchers or AA?<\/p>\n

Have you ever coveted my famous, nine-hour course, How to Broker Commercial Loans<\/a>? \u00a0I will give you this course for free if you gather up twenty commercial real estate loan officers working for banks<\/a> for me.<\/p>\n

But where do you go to find these bankers to call? \u00a0Simple go to Google Maps and type in your office address. \u00a0In the Nearby field, type in “Banks”. \u00a0Voila!<\/p>\n

\"Screen<\/p>\n

Since we can’t eat out, now’s the perfect time to eat better, get fit, and stay healthy. \u00a0Hellooo? \u00a0We’re quarantined! \u00a0Who are we trying to impress? \u00a0We have snacks, and we have sweatpants. \u00a0I say we use them! \u00a0\ud83d\ude42<\/p>\n

Commercial Mortgage Rates Today:<\/strong><\/p>\n

Here are today’s commercial mortgage interest rates<\/a> for permanent loans from banks, SBA 7a loans, CMBS permanent loans from conduits, and commercial construction loans.<\/p>\n

Be sure to bookmark our new\u00a0Commercial Loan Resource Center<\/a>, where you will always find the latest interest rates on commercial loans; a portal where you can apply to 750 different commercial lenders in just four minutes; four huge databanks of commercial real estate lenders; a Glossary of Commercial Loan Terms, including such advanced terms as defeasance, CTL Financing, this strange new Debt Yield Ratio (which is different from the Debt Service Coverage Ratio), mezzanine loans, preferred equity, and hundreds of other advanced terms; and a wonderful Frequently Asked Questions section, which is designed to train real estate investors and professionals in the advanced subject areas of commercial real estate finance (“CREF”).<\/p>\n

By George Blackburne<\/p>\n","protected":false},"excerpt":{"rendered":"

Quick funny:\u00a0 Tomorrow is the National Home-School Tornado Drill. \u00a0Lock your kids in the basement until you give the all…<\/p>\n","protected":false},"author":1,"featured_media":609,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,1],"tags":[102,5,223,65,224],"class_list":["post-608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-insights","category-latest-news","tag-banks","tag-commercial","tag-contact","tag-their","tag-turndowns","entry","double"],"_links":{"self":[{"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/posts\/608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=608"}],"version-history":[{"count":1,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/posts\/608\/revisions"}],"predecessor-version":[{"id":17640,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/posts\/608\/revisions\/17640"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=\/wp\/v2\/media\/609"}],"wp:attachment":[{"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=608"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/streamapse.com\/TAR\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}