August 2, 2010
Long-Term Lending Relationships
When you think of long-term relationships, you think commitment, trust, understanding, HUD LEAN programs…Oh no?
Maybe you should.
A long-term relationship with a lender brings you the same kind of commitment, trust, and understanding that you look for in other relationships, but this time, the rewards are financial.
For example: a solid relationship with a lender can mean you can move ahead on a property acquisition without worrying about where the money is coming from. You’re better positioned to predict your lender’s behavior, and you’ll be able to take ownership of the funding program.
Try thinking of your next loan as a first date. Look for the qualities you’d want in a long-term partner. Does the lender deliver on their promises? Do they inspire confidence? Did they set realistic time frames?
If these questions aren’t answered quickly and satisfactorily, it’s time to start looking for a new potential partner.
In a perfect world, a lender would be able to fund any type of transaction, but in reality, this doesn’t often happen. Put together a list of the types of transactions that you’re likely to consider in the future. Compare possible lender partners to this list. If they can’t measure up to your standards, they aren’t worth your time.
Look for a lender that you can see yourself spending many years with. Financial relationships are the kind that get better with age.
We’re constantly trying to improve our relationships with borrowers, and always looking for new ways to build that trust and understanding. What are you looking for in a long-term lending partner?
