We had a very hard and complicated deal that was under LOI and in underwriting. We agreed to help on this deal with the business owner having gone through a tough experience with previous potential lenders and was in a tight pickle—maybe against our better judgment. Underwriter comes back with follow up questions and keeps checking in once a week to try to get the answers. Borrower does not respond in over a month. Underwriter puts a deadline for the answers and says if answers are not in by then, the deal will have to be declined due to incomplete submission. The deadline passes and the next day, the borrower sends in the answers. Only so much you can do—business owners have to want to help themselves.
Greg Moore
8mo
Hmm, 1 day doesn't change whether the deal is a good one or not. Not sure I agree with the underwriters decision. Although it is frustrating when borrowers jump up and down and rush only to delay.
Sarab Singh
8mo
Time kills not just bad deals, but good deals as well!
Steven Titcomb
8mo
So true
Josh Kaplan
8mo
We love complicated deals! It’s all about the communication with banker/bank. An open dialogue is key.
Joseph Friedling
8mo
Great post Jeff!
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8moJeff Gerstner when I’ve ever helped “the business owner having gone through a tough experience with previous potential lenders” I’ve always found out that there was a REASON for their tough experience and usually ITs NOT THE OTHER LENDERS! Can we start calling it what it is? Some borrowers and clients are SH*T PEOPLE!! With an unnerving ability to find kind hearted people to take advantage of. I SAID IT!! No matter what good people in business do they will run across some really nasty people.. the answer- See it early and if you can’t… you can FEEL it! Cut them off early and move on to good people that truly need your expertise.