We’ve all heard the propaganda – the economy. What ever went wrong this year everyone blamed the economy including myself and my friends. But does that explain why so many approved deals went sour. I just don’t know. I thought this was a problem that only we were having, but as I talked to more and more people in our industry the same story kept on repeating itself. From Real Estate Brokers to Business Brokers to Lenders and to our competition the Financial/Mortgage broker.
We lost in prospective approved deals more than we made for the entire year, and I know that we were not alone in this phenomenon. But WHY?
I blame not the economy but the talking “heads” – pundits about the economy. They have provided many people a false sense of security that we are over this economic wave, and that only better times (which translate to better deals) are ahead. Nothing in my mind can be further than the truth. We are still in this economic sea of turmoil. Lenders are not opening up the spicket so to say and lending everyone who needs capital money yet. There is a false sense of security as to the lending community, so please if you have an approved loan – TAKE IT, as there may not be a loan waiting for you in the months to come with better terms. Lenders are still being very restrictive on their lending criteria.
So if you are not the cream of the crop, and you are fortunate to get a real Letter of Commitment – then pull the trigger and go for it. I believe in the long run you will be very pleased that you did, as long as you made a smart buying opinion.