Traditional bank lenders are not typically the lowest cost and lowest rate loan sources in the marketplaces. They are typically the only recourse that the general public is aware of. We go direct to the source to find the best loans options and terms available.
In most instances, banks are not the true originators of the commercial real estate loans that they provide. In many instances these loans are packaged together and sold off to larger, institutional investors that loan money in large tranches (typically starting at half a billion dollars). Banks and other traditional lending sources are middle men.
We deal directly with the true source of capital, be it large insurance company, the CMBS (Commercial Mortgage Backed Securities) market, hedge funds, or government agencies (Fannie/Freddie/HUD). These investors provide direct sources of capital without the added costs that banks are required to include.
We do oftentimes work directly with banks, particularly on the smaller transactions (under $3MM) where the direct capital sources do not have the desire to compete. Because of our extensive network within local, regional, and nationwide banking institutions, we provide the best resource for these smaller balance commercial real estate loans. In any market there are as many 100 separate banking institutions, we know which ones are lending money on which asset classes at the most aggressive rates.