First and foremost we consider our service to our clients to be free. We get our revenue from the banks, life companies, conduits and other commercial lenders who have joined our illustrious list of lenders. Now onto 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 for your client or yourself 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 that 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 non-prime 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 being negotiate this incredible maze?
Peach capital 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 Peach Capital (me – a real estate professional for 13 years and the owner of a commercial mortgage company) spent years and closed over hundreds of serious transactions to finally find the secret sauce.
About Mr. Marcus Bienvenu Mavakala
Marcus Mavakala is CEO of Los Angeles-based Peach Capital,Inc a division Of Bizbanq Capital. Peach Capital focuses primarily on the U.S. Small Business Administration’s 504 and 7 (a) Loans, but the company also offers all other commercial loan products. Reach Mr. Mavakala at (877) 679-4455 or marcus@PeachCapital.co
