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For instance, some brokers may assume that because the commercial credit market remains tight, double-digit hard-money loans are the only available option for borrowers. Traditionally, hard-money loans have been a last-ditch solution for borrowers who cannot locate funding by any other means. When borrowers can qualify for better rates and terms, it rarely makes sense for a broker to push this solution.
In many cases, however, there are other funding resources, domestically and internationally, that are willing to lend money to deserving property-owners.
To find the best funding for a particular client's needs, brokers must set aside their preconceived notions of the rate and terms for which their client likely will qualify. They must be willing to go the extra mile in locating viable solutions for their clients. Although a high-rate loan package with a short term might be the easiest and fastest solution, brokers who work diligently often can find a more modest interest rate for their borrowers.
The key to succeeding lies in diversifying solutions and avoiding temporary, trendy financial solutions that might not stand the test of time. Conventional lenders are slowly beginning to test the market and are showing signs of extending credit to worthy borrowers and projects. Brokers can locate these lenders through solid research and provide borrowers solutions by building rapport with these lenders.
To find the best, most-equitable solutions to clients' funding problems, seek the best-possible results for these borrowers. Brokers who maintain this commitment to their clients not only will help them achieve their goals but also will establish themselves as vital business partners.
By employing these tactics, you likely can meet your clients' needs and lay the groundwork for years of success. If you conduct yourself properly and meet these needs effectively, then profitable, long-lasting relationships -- and profits -- certainly will follow.
Irving J. Diaz
is the founder and senior managing director of SouthOne Capital, which is headquartered in Miami and has a presence throughout Florida. SouthOne Capital provides a full range of advisory and capital-markets services for commercial real estate assets with funding needs between $5 million and $50 million. Reach Diaz at (888) 800-3126, ext. 417, or firstname.lastname@example.org.
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