Are Borrowers really lenders agnostic or do they always end up with the same lenders?
Most borrowers would identify themselves as lender agnostics but in reality, when they need financing they end up with the same lenders.
[{"id": "hs9ubzm", "text": "Commercial RE Lending is a lot more relationship driven than Residential Lending is.  As borrowers become more experienced and have bigger portfolios (hence more diversified cashflow streams), they will often seek to maintain multiple sources of financing to ensure funding availability.  But a borrower who shops every deal with every lender in town (I am assuming a big town with multiple lenders) without establishing ongoing banking relationships will eventually wear out their welcome. **IMO**", "replies": [{"id": "hsabonu", "text": "I know a couple big guys who both use 2 banks each to diversify, but they let both of them know they shop the rates to keep them honest. Both of these guys are getting 80 LTV backed with a personal guarantee on pretty much anything. That's where they're relationships come into play.", "replies": [], "depth": 2}, {"id": "hsvlh14", "text": "Yeah it\u2019s easier with established relationships and we usually get better terms too, less recourse, less front end negotiation of the loan docs, etc.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hs9ywbf", "text": "Working in PE don\u2019t really care, will take whoever gives me the best rate and the best structure that matches my business plan, be it bank, debt fund, SASB, whatever. The match to business plan is the most important part; unless you\u2019re borrowing in a small market or for a very specialized product type lender relationships don\u2019t matter at all (well I mean have a good relationship with them but you don\u2019t need to let them win every deal, you still need them to like you if stuff gets weird)", "replies": [], "depth": 1}, {"id": "hsato96", "text": "As a banker with CRE exposure and RRE exposure, commercial is way more reliant on relationships.", "replies": [], "depth": 1}, {"id": "hsb4aq1", "text": "Are lenders really borrower agnostic, or do they always end up with the same borrowers? And why do they complain when they can't find deal flow?\n\nAs a private borrower, I get tired of shopping lenders to just get told \"no\". If I liked getting rejected I'd probably spend more time online dating, not shopping loans.\n\nNow I have a good relationship with a local lender, and guess what? They always say yes. Am I paying 50 bps over market? Probably, yes. Am I paying a broker fee? No.", "replies": [], "depth": 1}]