Astute senior housing/healthcare borrowers seeking to maximize their funding options may find the best route has them walking a few miles in their lender’s moccasins.
“To get the best results, borrowers should be aware of, and act upon, the things that are important to the individual who is processing their loan. From a business perspective, it makes good sense to do so,” says funding expert Jeffrey A. Davis.
“Within any lending organization, loan officers are motivated to make good loans that will be paid back. But they also want to work with borrowers they can introduce to the boss, and they prize working relationships that have repeat business potential,” he observes.
Davis is Chairman of Chicago‑based Cambridge Realty Capital Companies. Ideally, he says, borrowers have already decided upon the type of loan they want before talking with the lender.
Motivated lenders want to fully understand the borrower’s objectives and what, specifically, the funding is for. This isn’t always apparent.
“Lenders are always hopeful that borrowers will communicate their needs and describe their specific situation in a clear, concise manner using specific examples as appropriate. However, when developing written material, less can sometimes be more,” Davis points out.
The expectation is that borrowers will provide meaningful exhibits, professional photos and readable maps. The numbers presented need to be accurate and are expected to “add up,” he stressed.
Lenders are especially appreciative when borrowers are responsive ‑‑ and decisive. A borrower’s willingness and/or ability to deliver a speedy yes-or-no response when a decision is needed can profoundly impact the way the relationship unfolds.
“While these points may seem fundamental, a surprising number of deals unravel because potential borrowers fail to respect the process and what is required to get a project funded in today’s tight credit markets. It’s important to know precisely where your lender is coming from,” Davis notes.