Every commercial mortgage broker has dealt with a hard-to-close deal. Whether it’s because the borrower has tough credit, tax issues or simply isn’t as forthcoming about their financial information as you’d hope, there are times when simply giving up seems like the best option. Knowing when to walk away from a small-balance commercial loan is important, but it’s also crucial to know when a tougher deal is worth fighting for. Here’s what you need to do:
Identify the problem(s).
The first thing you need to handle is figuring out exactly what it is that makes this deal difficult. Does your borrower have less-than-stellar credit because of issues during the recession? Is it tough for you to get the documents you need to move the lending process along? Are there title issues? Simply knowing what issues you’re dealing with is a major step forward in helping your borrower to obtain a commercial mortgage.
Identify possible solutions.
The next thing you need to do is work out solutions to your borrower’s problem. If it’s tough to get the documents you need, it might be as easy as having an honest conversation with your borrower about how important these documents are to getting them the financing the need. If it’s a problem with your borrower’s credit or title work, you may need to find a flexible, non-conforming lender.
Choose the right lender.
When you’re working on a difficult commercial mortgage, it’s important to find an experience lender known for creative solutions. Make sure you choose a lender that will listen to your borrower’s story and work with them to find the right financing fix.
Cooperate fully with your lender.
An important factor in closing tough commercial mortgages is working closely with your lender to resolve any issues. Your lender wants this deal to close too, so you need to assist them as much as you can.
In order to close a tough commercial deal, you need to be persistent. If you can identify the issues and work closely with your lender to solve them, then there’s no need to throw in the towel. It might require extra effort, but your perseverance will pay off in the end.