What borrowers want: how to adopt to a new market.

In order to create and maintain a competitive edge, lenders must constantly adapt to the demands of the marketplace. In order to win business, lenders need to be on the pulse of the most creative deals in the industry, ready to bring innovative finance solutions to their own clients when called upon. In the last few months alone, the dynamic field of real estate finance has taken turns and twists that even the best experts couldn't predict. Therefore, it is essential for commercial mortgage firms to offer as many products as possible in order to capitalize and accommodate market demands. Unless lenders continue to provide flexibility, creativity and greater leverage, their success will be limited.

A recent office financing in New Jersey highlights the importance of staying on the cutting edge of the lending industry to best serve client needs. In this recent multi-family property transaction, the borrower was offered interest only products for two-three years on a ten-year fixed rate financing based on a 30-year amortization schedule. Since the first two years are interest only, the borrower will receive a great deal of relief on his cash flow. Six months ago, the same borrower may have been offered a straight ten-year term based on a 30-year amortization schedule.

In today's market, innovative lenders offer a wide range of loan terms. For instance, if a borrower wants to put debt on a property for two years, there are terms ranging from five, seven and ten years on a 25-30 year amortization schedule, with a balloon payment at the end of the period. And there are other lending products such as Fannie Mae and FHA, which allow 25-35 year fully amortized loans. Lending firms can offer and suggest products such as portfolio loans' bridge loans, mezzanine loans, conduit loans and government programs, such as Fannie Mac, Freddie Mac and FHA/HUD loans, that will accommodate the borrower's individual needs and circumstances.

Being an expert in the vast array of product lines allows the lender to provide the best guidance for his clients and, ultimately, the best deal specific to the borrower's needs.

In addition to being flexible, creative and providing greater leverage, there is a final skill that will keep originators on the top of the game. As is evident with the scope of product lines available, originators need to cross-sell products ranging from bridge loans, permanent loans and government products to short-term LIBOR-based loans. This adaptability and expertise will help better serve the dynamic needs of the clientele.

Again, honing cross-selling skills helps maximize client's options, in turn giving the client the right combination of products to satisfy his or her needs:

The bottom line is, the greater the choice of products presented by a lending firm, the more lending opportunities there will be for a company. It is no longer an option, but a competitive necessity for mortgage lenders to provide the ultimate in expertise, product lines and custom-made solutions to grow the business and achieve success.