By Paul Trimakas
How to Reach Distressed-Property Owners
Once you find potential clients, ensure you have the skills to aid them
with morE commErcial propErtiEs
facing default nationwide, many owners are looking for an exit strategy but
don’t know where to turn. Mortgage
brokers are in a prime position to help
distressed-property owners. You can
use your lending and negotiating skills
to help clients seek loan workouts or
The documentation necessary for the
initial due diligence for a loan workout is
similar to underwriting a full-doc loan at
origination. Additionally, there are many
opportunity funds available on the sidelines, and you can guide property-owners to them. From real estate investment
trusts’ discounted-note offerings to annuities and pension funds allocated for
real estate gentrification, you can become a conduit between investor pools
and distressed-property owners.
Commercial loan workouts can
be complicated. But if you build a
strong team of legal, underwriting
and marketing advisers, you can help
distressed-property owners improve their
situations. The key is to know where,
when and how to market for viable com-
mercial loan-workout candidates. Here
are some tips for finding them.
Start with the Internet. Search-engine
marketing is a great way to reach people who are specifically looking for help
with their commercial properties.
There are many options for marketing
commercial workouts on the Internet,
including search-engine optimization
(SEO), pay-per-click advertising and
SEO and pay-per-click ads also are
called pull advertising, which means
they draw visitors to your Web site
when they are actively seeking a loan-
workout service. For example, with pay-
per-click advertising, a click to your site
can range from 5 cents to $15 per click.
A word of caution: You can lose money
quickly if you do not know what you
are doing. There is a learning curve. It’s
beneficial to partner with an Internet
company that has already investigated
and used these advertising tools.
Also, join your local chamber of commerce, become a member of a commercial mortgage brokers’ association and
contact your city’s economic-develop-ment department, to which business-owners often turn when they need
Successful marketing relationships for
commercial loan workouts require planning and continual contact with related
professionals such as commercial lenders, title-company commercial divisions,
contractors, engineers and developers.
The broader your network, the easier it
is to facilitate a successful transaction.
We are your floating rate bridge loan experts with extensive entrepreneurial financing experience. Hall Structured Finance offers flexible terms and pricing for floating rate bridge loans on income-producing properties. And, with ready capital, we can close transactions quickly. If you need a motivated, creative lender, give us a call today. We can help you make ends meet.
Tap your network
Commercial property-owners typically
are preoccupied with the many facets
of their business operations. An effective way to reach them is to tap the referral network you have established as
a mortgage broker. Your previous clients
can be an excellent source of investor relationships, or they may have colleagues
who own a distressed office building.
Property-management and leasing companies can be other prospect
sources. They may work with property-owners whose blood pressures are rising because of vacating tenants. Your
approach should include presenting
a financial resolution to the property
manager who may be experiencing reduced revenue and to the landlord who
may be about to lose a property.
Develop professional alliances, as well.
Certified public accountants and attorneys typically are trusted professionals
who have developed fiduciary relationships with their commercial clients. In
this declining market, legal representation and accounting practices focus more
on restructuring debt, salvaging income
and finding sources for rescuing their clients’ commercial properties.
Approach accountants and real estate attorneys with long-term reciprocity in mind. This means you should
offer twice as much as you expect to
get back in the short term for your workout services. Professional relationships
take more time to foster, but they can
reap huge rewards in the long run.
Commercial real estate firms are another hub of potential loan-workout
clients. They may have many commercial property listings because of their
clients’ lost operating income. Many
commercial listing agents are having
difficulty selling their inventory. You
can become an advocate for these
agents by finding private investors,
joint-venture capital and fund pools for
Teach yourself and others
Read everything you can find related to
the loan-modification industry.
Create your own support group of
commercial loan executives, attorneys and bankers. These professionals may become your mentors and may
even help you find further business
You also can use your knowledge to
educate other mortgage professionals on how to determine values, cap
rates and debt-service-coverage ratios
for distressed commercial properties.
Doing so, you may end up with new
associates and mutually beneficial relationships. Be willing to give back to
your business community, and you will
receive much more in return.
When you are ready to approach distressed-property owners to help them
with loan workouts, start meeting them
in person. Show sincere interest in their
business operations. This will help
open your dialogue and develop a common ground of mutual respect.
Remember, business-owners want
to prosper. Approach them with the
expectation to learn about their business and to help them rectify their
upside-down debt-service dilemma.
Your genuine desire to solve business-owners’ cash-flow issues will speak
volumes to your prospects. The more
you understand their business and relate to their needs, the more successful
you will become in helping them with
loan workouts. •
◗ Entrepreneurial, direct lender
◗ Ready capital
◗ Complex debt-structuring expertise
◗ Rapid response
◗ 40 years real estate and finance experience
◗ First mortgages, mezzanine, preferred equity
For more information, contact:
Mike Jaynes, email@example.com
972.377.1100 | www.hallstructuredfinance.com
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Paul Trimakas, program director for C WBlue
print.com, has two decades of commercial
banking and marketing experience. C WBlue-print is an educational, Web-based program
geared to mentoring and assisting mortgage
professionals who are interested in becoming successful commercial loan-modification
affiliates. Trimakas has a master’s degree in
mass communication and lectured at California State University, Northridge. Reach him
at info@C WBlueprint.com.