Value of Relationships

Relationships in the commercial lending business have always been important.

Certainly borrowers need relationships with lenders, but I just had an interesting case come to me from some borrowers in England that own multifamily property here in the States for which they're looking for financing (more specifically, bridge financing).

I just don't see the transaction getting funded in this environment, but the thought hit me that the destruction of the U.S. credit markets has included the total elimination of not only institutions that would have typically been interested in transactions, but more importantly, the individuals with whom I’ve had relationships with for many years.

Those relationships are not only the glue that holds transactions together, but also the network that helps move transactions to the best lender or contact or program.

So many former colleagues no longer have a phone to answer since they're employer has gone under, or since they've been layed off that it is a major task to establish new contacts in a very frightened lending environment.

This is further slowing the financing of very good transactions.