Sourcing a loan and finding which institution is best for the individual situation is challenging.  In other words, one size does not fit all.  Each financial institution has strengths where they might be the optimal resource for a particular loan scenario.  But like all of our clients, what do you do when your contact does not offer the optimal solution?

That is part of why I exist.  I have (through the years) determined who to work with for most scenarios.  In addition, I know how to complete a deal when there is hair on it or when specific credit issues are apparent.

Not Analyzing the proper loan solution is the number one mistake that I see.  And, I believe the most common misconception when working with business partners and clients is the belief that a lending solution is simple.  Typically, whether it is a commercial deal or a private money deal, the first question is how much are the points and fees.  Now that is a good question if we know the solution.  It is a terrible question if the proper analysis indicates that much more efficient solutions exist that match the client’s financial objectives.

This makes me think of the health industry.  We get some sort of injury or illness; and we head over to the surgeon right away.  The surgeon reviews it and knows that they can fix it with surgery.  That is their focus; and it is a natural conclusion.  However, what if there was an alternative to that very surgery that was a better approach?  Would you want that?  And what if there are viable financing solutions other than what seems obvious?  Wouldn’t you want that too? Whether it is in medicine or lending, one of the very frustrations is finding that professional that can take the holistic view, be our advocate, and help guide us to the solution that best fits our needs.

Taking this back to commercial and private money lending, I believe our clients are best served when there is an advocate that can analyze the potential solutions for the benefit of the client.  As a Strategic Commercial Mortgage Broker, that is exactly what I do.  This allows me to recommend solutions that are often overlooked.  It allows me to match the solution to the needs of the client.  And sometimes that means doing no loan at all.

Through the years I have commented on how all of us are vulnerable to a web/cloud/internet competitor unless we offer true value-added solutions to clients.  It is why I want to know my client’s objectives along with their financial situation, their assets, holdings, etc. This allows me to seek solutions based on their unique scenario.  If I don’t take this approach, then I am rushing to judgment much like the surgeon ready to cut who does not look at the alternatives.

If you want or demand that your Strategic Commercial Broker analyzes the client’s situation before providing a recommended solution, then we should be finding ways to work together intelligently.

My apologies for the length of today’s commentary.  It is just that I feel passionately about how we all should be helping each other and our clients. I welcome you to look around the site; and then feel free to call me with comments, and your questions or concerns.  All of this is intended to strengthen the solutions that you are offering your clients.

That is it for this week.  As always, please feel free to call me with any of your strategic financing needs.