November 7, 2023 • 18 mins
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Contact us here Anything@FranPro.com if you:
- Want help finding a franchise
- Would like to be featured on our program
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- Are a franchise company and want access to our free ROI Tracker dashboard
In this episode, Lance Hood of FranPro interviews Brian Peart of Commercial Capital Limited. Brian Peart is an incredible resource for any franchise organization. If you would like to work with Brian you can reach him here: https://Franpro.vip/GoCommercialCap
Brian Peart of Commercial Capital Limited is a top performer specializing in startups and difficult loans. He has a high success rate of closing deals that were previously denied elsewhere, and can offer loans up to $5 million with no collateral.
Covered in this call:
- One of the top loan officers in the country
- Specializes in startups and difficult loans
- 80% of closed deals were previously denied elsewhere
- Able to do loans up to $5 million with no collateral
- Loans must be $250K or above
Get ready to demystify the world of commercial loans with our guest, Brian Peart, a seasoned financial expert who has a knack for turning loan rejections into approvals. You'll be intrigued as Brian shares his journey, including his pivotal role in helping the fast-food chain, Firehouse Subs, expand nationally. He also unravels the puzzling fact about banks denying 50% of loan applicants, shedding light on how a lender's portfolio can influence the loan process.
As we move further into the conversation, Brian offers precious nuggets of wisdom on how to streamline the loan approval process. Learn from the common mistakes people make when applying for loans, and understand the importance of getting pre-approved before jumping into the loan application process. Brian also breaks down complex franchise deals and discusses how components like lease negotiations can affect your loan timeline. Tune in and equip yourself with expert advice to leap over financial hurdles and bring your entrepreneurial dreams to life.
Contact us at Anything@FranPro.com if you:
- Want help finding the right franchise for you
- Would like to be featured on our program
- Would like help to produce or want a podcast produced for you
- Are a franchise company and want Free access to our ROI Tracker dashboard
*Some of the companies we interview compensate us a commission if you purchase something.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Lance Hood (FranPro) (00:05):
Hey everybody, welcome to the
Franpro think tank.
Today I have Brian Peart fromCommercial Capital.
Brian, welcome to the call.
Brian Peart (Commercial (00:18):
Thanks .
Lance Hood (FranPro) (00:20):
Well, brian, can you briefly tell us a
little bit about yourself andyour background?
I know that I've worked withyou for a long time and I've
really, really been very happywith the results I've got
working with you, and I justwanted everybody else to have a
chance to meet you.
Brian Peart (Commercial Ca (00:36):
Sure , sure, lance.
Well, I'm Brian Peart.
Commercial Capital and Next isFinancial.
We started I started thecompany back in 1995.
We've been doing.
We started as residential, nowwe're doing commercial.
We launched our commercial inabout 2000 and now that's all we
do.
And we've grown to where Iprobably produce more closings
(00:58):
per month than any single loanofficer in the country.
So we're growing.
Lance Hood (FranPro) (01:05):
So, Brian, what would you say?
Your specialty is because somepeople are like a loan is a loan
.
Brian Peart (Commercial Ca (01:13):
Well , yes, the documents you sign at
the end are a loan.
But whether you get approved ordenied or any of that, that's
all up to who you're choosing.
And the thing with us is mostof the deals we get have already
been denied by a bank, even SBA, and then we take them, get
them approved, because whatpeople don't understand is the
(01:35):
SBA didn't deny the borrowerthat bank did, they just went
with the wrong bank.
We take it and get it done, andusually at the exact same rates
that they were getting from thebank, but we get it to the
closing table.
Lance Hood (FranPro) (01:49):
So I remember one time you told me
that some people get denied andthen they come and work with you
and you actually get the dealdone, and for a lower rate.
Brian Peart (Commercial Ca (01:59):
Yeah , that's happened plenty of
times.
Probably about 80% of thebusiness we closed got denied
somewhere else and then came tous and got closed.
We do a lot of startups, whicha lot of banks don't want to do.
Probably 40% of our business isstartups.
So we're doing a lot of dealsthat I mean they're good deals,
they're good borrowers, theyjust a lot of banks don't like
(02:21):
them because they don't havecollateral or they don't have
this or that, and we just find aspot that works for them.
Lance Hood (FranPro) (02:29):
Well, I remember you even told me about
a few of the bigger brands thatyou helped them get started.
You certainly had a few unitsand you sourced the banks,
because sometimes one bankdoesn't want to take and open up
a whole lot of locations ofsome new brand, so you have to
source it from different banksjust to make it work.
Can you share some of thosestories?
Brian Peart (Commercial Ca (02:49):
Sure .
So you know, I started doingfranchises back in maybe 2011
when Firehouse Subs was tryingto grow across the country.
They were big in the Southeastbut they didn't have any
presence out west and they werehaving trouble getting financing
.
And so, as they continued outwest, I kept finding sources for
them through Colorado intoCalifornia and helped them grow
(03:12):
into a nationwide brand.
We had a lot of success withthat.
It was a lot of fun for manyyears.
Lance Hood (FranPro) (03:20):
And what would you say?
You know for some of thebiggest challenges that people
experience, that you work with.
Brian Peart (Commercial Cap (03:30):
You know, lance, I think the
biggest thing is that you don'tknow what a bank really wants to
do, unless you send loans tothat bank and you see how their
credit committee comes about.
Because the loan officer who'sin the bank branch may not even
know they may only be workingthere a few weeks and not even
really know what that bank isdoing and so because of that you
(03:52):
might be banking at a bank andyou think that bank will
naturally do your loan, but theyactually don't like deals with
no collateral or they don't likedeals with credit scores of 650
and you don't know that.
So what we do is we kind oftake the strengths of the
borrower, their credit, theircash for their collateral, and
match them with the lender thatkeys in on those strengths, so
(04:13):
that they're kind of fitting thesquare peg with the square hole
and it has a lot higher successrate of closing than just going
and applying it.
Whatever bank you think is agood bank just because they've
done good holding your money ina CD, you know.
It's not be very good at SBAloans or any other type of loan.
Lance Hood (FranPro) (04:34):
So yeah, I have found the same thing with
a lot of people.
They feel more.
I think it feels morecomfortable to try to work with
a local bank that they've workedwith for years or done their
checking with and or their homemortgage.
But it doesn't seem to be thatthose banks all say, sure, we
(04:54):
can do it.
But I've seen a drastic amountof them not able to actually
pull it off and have an endstarting out excited and in the
end just kind of saying sorry,and then the person thinks that
they don't qualify for a loan.
But it's just the bank thatthey went with because I think
it's a security issue, it feelsbetter.
Brian Peart (Commercial Ca (05:16):
Yeah , the statistics are pretty
stunning.
Most banks will ultimately deny50% of the applicants that come
their way.
So even if you get a letterfrom the rep a letter of
interest, what it's called itmay get denied in credit
committee, which is when themoney really is put out there
once they give you a commitmentletter.
So really you're at adisadvantage as a client or a
(05:42):
customer because you don'treally know if that bank likes
your type of loan or not.
Just because they like you as aperson and you're good friends
with Mary Lou doesn't mean thatBob on the credit committee is
going to do the loan, no matterhow much they like you.
Lance Hood (FranPro) (05:59):
And I talked with somebody who said
that.
He said that a lot of banksmight even have a portfolio, so
they're trying to build acertain amount of different
kinds of loans and if yours isout of their portfolio, then
they can deny.
You Doesn't mean that you don'tqualify for a loan.
You're not a good candidate fora loan, the business isn't good
for a loan, but they're lookingfor more mortgages, different
(06:23):
types of things.
Brian Peart (Commercial Ca (06:24):
Sure , and they may change their
guidelines if they fill up.
So, like, a bank that didhotels two months ago may be
full on hotels and they won't dohotels anymore, even if the
hotel is really, really strong.
So it just depends on thatbank's portfolio, like you said,
and what they're looking for.
Lance Hood (FranPro) (06:43):
So do you have any other examples of
businesses and you don't have togive names if you don't want to
but that have had franchiseesthat just struggle and then you
were able to take those over?
Because that's one of thereasons I started working with
you, as I had some loans tonightfrom several of the major
franchise lending companies andthey just couldn't get them done
(07:06):
.
And I went to you and I don'tthink you've ever had a deal
that didn't get done, which Idon't think that anybody else
can say that in this industrythey work with a lender who has
never not been able to get adeal done, and I can tell you
that my experience with Brian ishe's never not been able to get
a deal done.
Brian Peart (Commercial Ca (07:24):
Okay , but there are deals that I
would say yeah, for you, youjust a better borrowers, right
so but but yes, I have a veryhigh poll through.
You know I've got lots ofexamples.
You know, just last month Iclosed a loan for a guy who was
starting a restaurant and it wasabout a $2 million deal and he
(07:45):
was with a bank for 11 monthsand Right before the closing
they denied his loan because oneof the One of his co borrowers.
The reason they were doing theloan, apparently, was that co
borrower had a lot of collateral.
Well, his collateral wasBitcoin and it dropped when the
(08:06):
Bitcoin thing right a few monthsago his, his portfolio went
from a million dollars of worthto like 100,000.
And they denied the loan.
So I took the loan, got it done.
I can do loans up to 5 millionwith no collateral so I got it
done.
He closed and he's he's.
It was a good loan.
He had experience.
He already had one restaurantopen but, but he could not, but
(08:30):
he had no collateral and it wasa $2 million loan and most banks
just won't go that high withoutcollateral.
So that was one, you know, I didClosing this week alone.
That's kind of amazing.
It's.
It's a borrower had aninsurance company and he they're
very successful to make goodmoney and they did it by
(08:52):
creating like an algorithm ontheir computer, right but?
But they create an algorithmthat that maximizes the cash
flow of insurance agencies.
They wanted to create anapplication and then sell that
application to other insurancecompanies and they needed about
3 and a half million to getAlmost seed money for that, that
(09:14):
application.
It was almost all workingcapital and and those are
incredibly tough to get done andand actually of the hundreds of
lenders I know there were onlytwo that might have considered
it and we got it.
We got it done, we got itapproved, we're closing it this
week and it's almost all workingcapital for the for the
creation of this app.
(09:36):
The reason it works is thebusiness itself supports the
debt.
So even though it's a newapplication, the business
supports the debt.
I mean almost every loan.
In my pipeline there's anotherone local, local restaurant, you
know just business only Alreadyopen, but the borrower went
with.
None of the local banks wantedto do it because, again, she
(09:57):
didn't have any collateral, itwas just the restaurant Business
being bought, not the realestate.
And you know we got it approved, got it done, and it's actually
a barbecue joint that I go toevery once in a while.
So it's kind of neat to do aloan for a place that you, you
know, you frequent, which Idon't always get to do.
So that was kind of cool.
Lance Hood (FranPro) (10:19):
Right.
Well, if I didn't know you andI was hearing this, I might
think that we're talking about aguy who can get loans done
regardless of the the theability to qualify for a loan of
the borrower.
So we're not looking at takingpeople who shouldn't have a loan
and finding a way to get them aloan.
(10:41):
We're taking people who qualifyfor a loan but they just went
to the wrong bank and we canfind a bank, brian can find a
bank that makes sense and willdo the loan.
And I have again, I'm sure thatthere's people that could not
qualify and you couldn't helpthem, but so far I've brought
(11:01):
people to you and I've never hadsomebody who was turned down,
so it's just been impressed withthat as a rule of thumb, what's
kind of like a range of howlong it might take for someone
to get funded.
Brian Peart (Commercial Capi (11:15):
So we do have our own private
money so we can fund deals withour own money instead of going
some of the channels like SBAand that can close in less than
30 days, but SBA loans aretypically 45 to 60 days and that
really depends on how quicklyyou get your documents in.
That's one of those things youcan do to really help your
process out.
Lance Hood (FranPro) (11:36):
Well, and I know that you also don't do
loans under 250,000, correct,that's correct.
So about 250 to 5 million isthe sweet spot.
Brian Peart (Commercial Cap (11:46):
Yes .
Lance Hood (FranPro) (11:48):
Yeah, and what are some common mistakes
that you see when people aretrying to use services like
yours?
Brian Peart (Commercial Cap (11:56):
You know, I think the biggest thing
that people do is they call melast Again.
They go into these banks orwhatever and they go online and
they try these things andthere's no real regulation in
our industry, unfortunately, soyou don't know what you're
(12:18):
getting.
You know, if you call me first,I'm gonna get on the phone, I'm
gonna talk about your deal, I'mgonna figure out if you can
even qualify, and if you canqualify, then I'll have you a
pre-approval within 24 hours.
So you'll know how much you canget approved for and you know
(12:40):
exactly what you can do.
That gives a lot of peace ofmind, you know, on a deal.
And if you can't get and if forsome reason, let's say, your
credit score is too low to getapproved, I can give you tips on
how to get that up, or I can atleast strategize with you where
you can qualify in six months.
You know.
Lance Hood (FranPro) (12:59):
You know almost anything can be overcome
if you have six months you knowRight, if you're persistent and
you wanna follow instructionsand stay in the process.
It definitely seems like ittakes longer, based on the
borrower doing the tasks thatthey've been given to do.
Brian Peart (Commercial Ca (13:18):
Yeah , so you know you said what's
something that can shorten it.
If you have to understand thatyou're gonna get asked a bunch
of questions initially, then atapproval and other bunch of
questions, then at loancommitment, you're gonna get
closing checklist, and so that'sat least three times when
you're being asked for documents, and if at each one of those
(13:38):
times it takes you one or twoweeks to get the documents in,
then you're adding two weeksplus two weeks plus two, you're
adding six weeks to the process.
All of a sudden it's not 60days, it's 75 or 90 days, and
the process didn't slow on thelender's side.
You just took so long to get itdone.
I've closed SBA loans in 40days, but the borrower gets the
(13:59):
stuff to us the same day.
That's the only way to get itdone that quickly.
Lance Hood (FranPro) (14:04):
Yeah, I have seen clients drag it out
and I always tell them the mostfun part is talking to the
franchise.
I said getting the loan is notgonna be the most fun part with
all the documents.
Brian Peart (Commercial Ca (14:19):
Yeah , franchise deals too, because
they're looking for lease spaceand stuff.
That's part of the process, anda lot of good franchises will
help them with that process.
But you've got to find a lease.
I can have it totally approved.
But if you don't have a placeto move into yet, I can't close
your loan yet, right?
So that could take.
(14:39):
I've seen lease negotiationstake months.
I'm just waiting for them tofinish and then we can close.
That's usually the case.
Lance Hood (FranPro) (14:49):
Yeah, and I've seen where some franchises
they don't require people tohave an office.
But if you don't get in thereearly and let the bank know that
they don't need an office tostart, then they're just to not
disturb loan.
They're doing all this extrastuff that drags it out and
takes forever.
So some of that stuff if theythink about that in advance,
(15:10):
that can be put out there anddrastically shortened the loan
time.
Brian Peart (Commercial (15:14):
That's right.
Lance Hood (FranPro) (15:15):
Yeah, any other things that you think that
could help people get better orquicker results when they're
looking for a loan?
Brian Peart (Commercial Capit (15:23):
I Think it doesn't hurt to Give
me a call.
We you're gonna provide a link.
I believe that they can mm-hmmto and set up a call with me
because I can talk you through.
I mean, I've started my ownbusiness and I've helped
hundreds and hundreds of peopledo their own Loans so I can get
you pre-approved, I can consultwith you, etc.
(15:44):
And it and I can do that forfree, it won't cost you anything
for that advice.
And it would be Prudent to getsome good advice like that,
because I really do a lot ofloans and and the more you do,
the more you learn, the more youknow, and so you just like a
sponge, just getting it all inright and and and so I can
(16:06):
provide that knowledge tosomeone.
I think that would be a greatstep one, rather than wait until
some banks deny you and thencall me.
Call me first, man, I'm, I'mgonna.
The Lord has gifted me with theability to, to teach and
consult and I'm gonna give youGood advice.
Lance Hood (FranPro) (16:22):
I will yeah, and I think I've even
introduced you to some franchisecompanies and and they've
seemed to be extremely happy.
So definitely the one thingthat you've told me since day
one is that you get frustratedthat people come to you at the
end to Fix things that arebroken.
Versus just sending you theirclients from day one so that you
could have the easy ones.
(16:43):
You always end up getting thehard ones, it's like right.
Why do people keep sending themto the people that get them
denied when and then send youthe denied ones when they Could
send you all of them?
Brian Peart (Commerc (16:52):
Especially when I'm gonna give them the
same rate or better.
I mean, you're gonna get abetter deal want and the advice
and everything else and close it.
It's, it's not wise to take therisk going somewhere else.
In my opinion, that drags itout.
Lance Hood (FranPro) (17:10):
All right.
Well, thank you, brian, Ireally appreciate you for
everyone who's listening.
I'd say you give Brian a calland check him out.
I've worked with him for years,been very happy.
I've never had a bad situation.
I've seen him go over and aboveand practically every situation
and even some things I haven't.
He's done some incrediblethings for people that I've seen
(17:32):
nobody in the industry do.
If you want to work Brian gohere https://Franpro.
vip/GoCommercialCap Brian Brian, I really appreciate having you
(17:55):
on the call.
Thanks, thanks for joining us.
Brian Peart (Commercial Capit (17:58):
I appreciate it.
Thank you, have a good day.
Hey everybody, welcome to the
Franpro think tank.
Today I have Brian Peart fromCommercial Capital.
Brian, welcome to the call.
Brian Peart (Commercial (00:18):
Thanks .
Lance Hood (FranPro) (00:20):
Well, brian, can you briefly tell us a
little bit about yourself andyour background?
I know that I've worked withyou for a long time and I've
really, really been very happywith the results I've got
working with you, and I justwanted everybody else to have a
chance to meet you.
Brian Peart (Commercial Ca (00:36):
Sure , sure, lance.
Well, I'm Brian Peart.
Commercial Capital and Next isFinancial.
We started I started thecompany back in 1995.
We've been doing.
We started as residential, nowwe're doing commercial.
We launched our commercial inabout 2000 and now that's all we
do.
And we've grown to where Iprobably produce more closings
(00:58):
per month than any single loanofficer in the country.
So we're growing.
Lance Hood (FranPro) (01:05):
So, Brian, what would you say?
Your specialty is because somepeople are like a loan is a loan
.
Brian Peart (Commercial Ca (01:13):
Well , yes, the documents you sign at
the end are a loan.
But whether you get approved ordenied or any of that, that's
all up to who you're choosing.
And the thing with us is mostof the deals we get have already
been denied by a bank, even SBA, and then we take them, get
them approved, because whatpeople don't understand is the
(01:35):
SBA didn't deny the borrowerthat bank did, they just went
with the wrong bank.
We take it and get it done, andusually at the exact same rates
that they were getting from thebank, but we get it to the
closing table.
Lance Hood (FranPro) (01:49):
So I remember one time you told me
that some people get denied andthen they come and work with you
and you actually get the dealdone, and for a lower rate.
Brian Peart (Commercial Ca (01:59):
Yeah , that's happened plenty of
times.
Probably about 80% of thebusiness we closed got denied
somewhere else and then came tous and got closed.
We do a lot of startups, whicha lot of banks don't want to do.
Probably 40% of our business isstartups.
So we're doing a lot of dealsthat I mean they're good deals,
they're good borrowers, theyjust a lot of banks don't like
(02:21):
them because they don't havecollateral or they don't have
this or that, and we just find aspot that works for them.
Lance Hood (FranPro) (02:29):
Well, I remember you even told me about
a few of the bigger brands thatyou helped them get started.
You certainly had a few unitsand you sourced the banks,
because sometimes one bankdoesn't want to take and open up
a whole lot of locations ofsome new brand, so you have to
source it from different banksjust to make it work.
Can you share some of thosestories?
Brian Peart (Commercial Ca (02:49):
Sure .
So you know, I started doingfranchises back in maybe 2011
when Firehouse Subs was tryingto grow across the country.
They were big in the Southeastbut they didn't have any
presence out west and they werehaving trouble getting financing
.
And so, as they continued outwest, I kept finding sources for
them through Colorado intoCalifornia and helped them grow
(03:12):
into a nationwide brand.
We had a lot of success withthat.
It was a lot of fun for manyyears.
Lance Hood (FranPro) (03:20):
And what would you say?
You know for some of thebiggest challenges that people
experience, that you work with.
Brian Peart (Commercial Cap (03:30):
You know, lance, I think the
biggest thing is that you don'tknow what a bank really wants to
do, unless you send loans tothat bank and you see how their
credit committee comes about.
Because the loan officer who'sin the bank branch may not even
know they may only be workingthere a few weeks and not even
really know what that bank isdoing and so because of that you
(03:52):
might be banking at a bank andyou think that bank will
naturally do your loan, but theyactually don't like deals with
no collateral or they don't likedeals with credit scores of 650
and you don't know that.
So what we do is we kind oftake the strengths of the
borrower, their credit, theircash for their collateral, and
match them with the lender thatkeys in on those strengths, so
(04:13):
that they're kind of fitting thesquare peg with the square hole
and it has a lot higher successrate of closing than just going
and applying it.
Whatever bank you think is agood bank just because they've
done good holding your money ina CD, you know.
It's not be very good at SBAloans or any other type of loan.
Lance Hood (FranPro) (04:34):
So yeah, I have found the same thing with
a lot of people.
They feel more.
I think it feels morecomfortable to try to work with
a local bank that they've workedwith for years or done their
checking with and or their homemortgage.
But it doesn't seem to be thatthose banks all say, sure, we
(04:54):
can do it.
But I've seen a drastic amountof them not able to actually
pull it off and have an endstarting out excited and in the
end just kind of saying sorry,and then the person thinks that
they don't qualify for a loan.
But it's just the bank thatthey went with because I think
it's a security issue, it feelsbetter.
Brian Peart (Commercial Ca (05:16):
Yeah , the statistics are pretty
stunning.
Most banks will ultimately deny50% of the applicants that come
their way.
So even if you get a letterfrom the rep a letter of
interest, what it's called itmay get denied in credit
committee, which is when themoney really is put out there
once they give you a commitmentletter.
So really you're at adisadvantage as a client or a
(05:42):
customer because you don'treally know if that bank likes
your type of loan or not.
Just because they like you as aperson and you're good friends
with Mary Lou doesn't mean thatBob on the credit committee is
going to do the loan, no matterhow much they like you.
Lance Hood (FranPro) (05:59):
And I talked with somebody who said
that.
He said that a lot of banksmight even have a portfolio, so
they're trying to build acertain amount of different
kinds of loans and if yours isout of their portfolio, then
they can deny.
You Doesn't mean that you don'tqualify for a loan.
You're not a good candidate fora loan, the business isn't good
for a loan, but they're lookingfor more mortgages, different
(06:23):
types of things.
Brian Peart (Commercial Ca (06:24):
Sure , and they may change their
guidelines if they fill up.
So, like, a bank that didhotels two months ago may be
full on hotels and they won't dohotels anymore, even if the
hotel is really, really strong.
So it just depends on thatbank's portfolio, like you said,
and what they're looking for.
Lance Hood (FranPro) (06:43):
So do you have any other examples of
businesses and you don't have togive names if you don't want to
but that have had franchiseesthat just struggle and then you
were able to take those over?
Because that's one of thereasons I started working with
you, as I had some loans tonightfrom several of the major
franchise lending companies andthey just couldn't get them done
(07:06):
.
And I went to you and I don'tthink you've ever had a deal
that didn't get done, which Idon't think that anybody else
can say that in this industrythey work with a lender who has
never not been able to get adeal done, and I can tell you
that my experience with Brian ishe's never not been able to get
a deal done.
Brian Peart (Commercial Ca (07:24):
Okay , but there are deals that I
would say yeah, for you, youjust a better borrowers, right
so but but yes, I have a veryhigh poll through.
You know I've got lots ofexamples.
You know, just last month Iclosed a loan for a guy who was
starting a restaurant and it wasabout a $2 million deal and he
(07:45):
was with a bank for 11 monthsand Right before the closing
they denied his loan because oneof the One of his co borrowers.
The reason they were doing theloan, apparently, was that co
borrower had a lot of collateral.
Well, his collateral wasBitcoin and it dropped when the
(08:06):
Bitcoin thing right a few monthsago his, his portfolio went
from a million dollars of worthto like 100,000.
And they denied the loan.
So I took the loan, got it done.
I can do loans up to 5 millionwith no collateral so I got it
done.
He closed and he's he's.
It was a good loan.
He had experience.
He already had one restaurantopen but, but he could not, but
(08:30):
he had no collateral and it wasa $2 million loan and most banks
just won't go that high withoutcollateral.
So that was one, you know, I didClosing this week alone.
That's kind of amazing.
It's.
It's a borrower had aninsurance company and he they're
very successful to make goodmoney and they did it by
(08:52):
creating like an algorithm ontheir computer, right but?
But they create an algorithmthat that maximizes the cash
flow of insurance agencies.
They wanted to create anapplication and then sell that
application to other insurancecompanies and they needed about
3 and a half million to getAlmost seed money for that, that
(09:14):
application.
It was almost all workingcapital and and those are
incredibly tough to get done andand actually of the hundreds of
lenders I know there were onlytwo that might have considered
it and we got it.
We got it done, we got itapproved, we're closing it this
week and it's almost all workingcapital for the for the
creation of this app.
(09:36):
The reason it works is thebusiness itself supports the
debt.
So even though it's a newapplication, the business
supports the debt.
I mean almost every loan.
In my pipeline there's anotherone local, local restaurant, you
know just business only Alreadyopen, but the borrower went
with.
None of the local banks wantedto do it because, again, she
(09:57):
didn't have any collateral, itwas just the restaurant Business
being bought, not the realestate.
And you know we got it approved, got it done, and it's actually
a barbecue joint that I go toevery once in a while.
So it's kind of neat to do aloan for a place that you, you
know, you frequent, which Idon't always get to do.
So that was kind of cool.
Lance Hood (FranPro) (10:19):
Right.
Well, if I didn't know you andI was hearing this, I might
think that we're talking about aguy who can get loans done
regardless of the the theability to qualify for a loan of
the borrower.
So we're not looking at takingpeople who shouldn't have a loan
and finding a way to get them aloan.
(10:41):
We're taking people who qualifyfor a loan but they just went
to the wrong bank and we canfind a bank, brian can find a
bank that makes sense and willdo the loan.
And I have again, I'm sure thatthere's people that could not
qualify and you couldn't helpthem, but so far I've brought
(11:01):
people to you and I've never hadsomebody who was turned down,
so it's just been impressed withthat as a rule of thumb, what's
kind of like a range of howlong it might take for someone
to get funded.
Brian Peart (Commercial Capi (11:15):
So we do have our own private
money so we can fund deals withour own money instead of going
some of the channels like SBAand that can close in less than
30 days, but SBA loans aretypically 45 to 60 days and that
really depends on how quicklyyou get your documents in.
That's one of those things youcan do to really help your
process out.
Lance Hood (FranPro) (11:36):
Well, and I know that you also don't do
loans under 250,000, correct,that's correct.
So about 250 to 5 million isthe sweet spot.
Brian Peart (Commercial Cap (11:46):
Yes .
Lance Hood (FranPro) (11:48):
Yeah, and what are some common mistakes
that you see when people aretrying to use services like
yours?
Brian Peart (Commercial Cap (11:56):
You know, I think the biggest thing
that people do is they call melast Again.
They go into these banks orwhatever and they go online and
they try these things andthere's no real regulation in
our industry, unfortunately, soyou don't know what you're
(12:18):
getting.
You know, if you call me first,I'm gonna get on the phone, I'm
gonna talk about your deal, I'mgonna figure out if you can
even qualify, and if you canqualify, then I'll have you a
pre-approval within 24 hours.
So you'll know how much you canget approved for and you know
(12:40):
exactly what you can do.
That gives a lot of peace ofmind, you know, on a deal.
And if you can't get and if forsome reason, let's say, your
credit score is too low to getapproved, I can give you tips on
how to get that up, or I can atleast strategize with you where
you can qualify in six months.
You know.
Lance Hood (FranPro) (12:59):
You know almost anything can be overcome
if you have six months you knowRight, if you're persistent and
you wanna follow instructionsand stay in the process.
It definitely seems like ittakes longer, based on the
borrower doing the tasks thatthey've been given to do.
Brian Peart (Commercial Ca (13:18):
Yeah , so you know you said what's
something that can shorten it.
If you have to understand thatyou're gonna get asked a bunch
of questions initially, then atapproval and other bunch of
questions, then at loancommitment, you're gonna get
closing checklist, and so that'sat least three times when
you're being asked for documents, and if at each one of those
(13:38):
times it takes you one or twoweeks to get the documents in,
then you're adding two weeksplus two weeks plus two, you're
adding six weeks to the process.
All of a sudden it's not 60days, it's 75 or 90 days, and
the process didn't slow on thelender's side.
You just took so long to get itdone.
I've closed SBA loans in 40days, but the borrower gets the
(13:59):
stuff to us the same day.
That's the only way to get itdone that quickly.
Lance Hood (FranPro) (14:04):
Yeah, I have seen clients drag it out
and I always tell them the mostfun part is talking to the
franchise.
I said getting the loan is notgonna be the most fun part with
all the documents.
Brian Peart (Commercial Ca (14:19):
Yeah , franchise deals too, because
they're looking for lease spaceand stuff.
That's part of the process, anda lot of good franchises will
help them with that process.
But you've got to find a lease.
I can have it totally approved.
But if you don't have a placeto move into yet, I can't close
your loan yet, right?
So that could take.
(14:39):
I've seen lease negotiationstake months.
I'm just waiting for them tofinish and then we can close.
That's usually the case.
Lance Hood (FranPro) (14:49):
Yeah, and I've seen where some franchises
they don't require people tohave an office.
But if you don't get in thereearly and let the bank know that
they don't need an office tostart, then they're just to not
disturb loan.
They're doing all this extrastuff that drags it out and
takes forever.
So some of that stuff if theythink about that in advance,
(15:10):
that can be put out there anddrastically shortened the loan
time.
Brian Peart (Commercial (15:14):
That's right.
Lance Hood (FranPro) (15:15):
Yeah, any other things that you think that
could help people get better orquicker results when they're
looking for a loan?
Brian Peart (Commercial Capit (15:23):
I Think it doesn't hurt to Give
me a call.
We you're gonna provide a link.
I believe that they can mm-hmmto and set up a call with me
because I can talk you through.
I mean, I've started my ownbusiness and I've helped
hundreds and hundreds of peopledo their own Loans so I can get
you pre-approved, I can consultwith you, etc.
(15:44):
And it and I can do that forfree, it won't cost you anything
for that advice.
And it would be Prudent to getsome good advice like that,
because I really do a lot ofloans and and the more you do,
the more you learn, the more youknow, and so you just like a
sponge, just getting it all inright and and and so I can
(16:06):
provide that knowledge tosomeone.
I think that would be a greatstep one, rather than wait until
some banks deny you and thencall me.
Call me first, man, I'm, I'mgonna.
The Lord has gifted me with theability to, to teach and
consult and I'm gonna give youGood advice.
Lance Hood (FranPro) (16:22):
I will yeah, and I think I've even
introduced you to some franchisecompanies and and they've
seemed to be extremely happy.
So definitely the one thingthat you've told me since day
one is that you get frustratedthat people come to you at the
end to Fix things that arebroken.
Versus just sending you theirclients from day one so that you
could have the easy ones.
(16:43):
You always end up getting thehard ones, it's like right.
Why do people keep sending themto the people that get them
denied when and then send youthe denied ones when they Could
send you all of them?
Brian Peart (Commerc (16:52):
Especially when I'm gonna give them the
same rate or better.
I mean, you're gonna get abetter deal want and the advice
and everything else and close it.
It's, it's not wise to take therisk going somewhere else.
In my opinion, that drags itout.
Lance Hood (FranPro) (17:10):
All right.
Well, thank you, brian, Ireally appreciate you for
everyone who's listening.
I'd say you give Brian a calland check him out.
I've worked with him for years,been very happy.
I've never had a bad situation.
I've seen him go over and aboveand practically every situation
and even some things I haven't.
He's done some incrediblethings for people that I've seen
(17:32):
nobody in the industry do.
If you want to work Brian gohere https://Franpro.
vip/GoCommercialCap Brian Brian, I really appreciate having you
(17:55):
on the call.
Thanks, thanks for joining us.
Brian Peart (Commercial Capit (17:58):
I appreciate it.
Thank you, have a good day.
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