From the Editor
By Neil Pierson
Keep your clients happy
with the right marketing tactics
It’s easy to feel overwhelmed in the information age as news sources, advertisers and social media channels bombard us on a daily basis. There is evidence to show that people are increasingly distracted. A study from Microsoft,
for example, found that attention spans are getting shorter, dropping from an average of 12 seconds in 2000 to
eight seconds in 2015.
Commercial mortgage professionals may be able to relate to this trend as they compete with
others for business. Prospective borrowers have more choices than ever when it comes to
selecting a lender or mortgage broker, but the nearly endless supply of information about
the products and services offered by these companies can bewilder potential clients.
Our September magazine, which focuses on marketing, aims to help readers cut through
the noise and become increasingly productive with their customer-recruitment efforts.
New author Erica LaCentra of RCN Capital gets things started on Page 30. In “Elevate and
Adapt,” LaCentra argues that commercial mortgage brokers can keep it simple to attract
more business. Rather than scrapping your existing marketing plan or purchasing complex
technology, look to leverage current relationships, create new ones, and improve your
website and social media presence, she writes.
On Page 46, Tyler Stone of Capstone Financial helps to define the various types of marketing
plans that mortgage professionals may incorporate into their business models. Any promo-
tional efforts, Stone says, should answer a common client question: “What’s in it for me?”
You can successfully employ every marketing strategy in the book, but your business may
suffer if you don’t protect your own interests. On Page 54, Rob Diodato of York Commercial Finance writes about
the issue of “broker protection,” advising readers to secure their hard-earned fees through clear and extensive
documentation with both their lenders and clients.
The subject of rising interest rates and the effects of higher costs on the commercial real estate industry is
addressed by two authors in the current magazine. On Page 79, new author Miles Farquhar discusses the use of
a second mortgage as a less expensive means for unlocking a borrower’s equity. Private lenders can be good
sources for these types of loans as they may be more willing to take a second-lien position, Farquhar says.
On Page 86, Sanford Herrick of Case Real Estate Capital LLC also talks about rising interest rates and the pressure
that creates for commercial-property valuations. In some major markets where undeveloped land is in short
supply, for example, new construction opportunities are being limited by higher costs combined with high
demand — pushing mortgage brokers and their clients to consider alternate investment strategies.
Jonathan Daniel of Knighthead Funding continues the conversation about construction financing — and loans
for vacant properties that aren’t yet producing income. On Page 96, Daniel offers insight into how lenders
underwrite these types of deals — which is often through a conservative analysis of comparable market rents
and requirements for additional borrower-contributed equity.
Susan Graham of Financial Industry Computer Systems Inc. — a frequent contributor to Scotsman Guide Residential
Edition — authors her first commercial-edition piece this month. On Page 57, Graham offers a big-picture overview
of reform proposals for the government-sponsored enterprises Fannie Mae and Freddie Mac. Assuming the GSEs
are restructured, Graham writes, mortgage brokers in the multifamily space may not miss a beat if they use the right
commercial-loan software to keep pace with regulatory changes.
As the calendar pages flip to the autumn months, we hope your business thrives in the face of an evolving and
information-laden lending environment.
Neil Pierson is editor of Scotsman Guide Commercial Edition.
Reach him at (800) 297-6061 or firstname.lastname@example.org.