Could Commercial Real Estate Become Loan by Phone?
Watching the Super Bowl is a blast. But beyond the game and the ads, it is refreshing to see someone of Clete Blakeman's stature reach his goal of reffing the big game. And then to give up the ultimate prize of the coin toss to anyone, including the legendary Joe Montana, is true class. Congrats, Clete.
The New York Times article today, The Super Bowl Ad That Set Off Economic Alarm Bells is a very interesting conversation about the economics of driving consumers to use convience as a way to once again take on more debt. Worth a read.
But what is also interesting is this:
Quicken Loans’s defense of the commercial is strongest on this point: Its product is about making the process of applying for a loan easier, not about lowering the standards for who can get a loan and on what terms. “It’s a far different world today than in 2006 or 2007,” said Jay Farner, president of Quicken Loans, in an interview Monday.
How does this apply to commercial real estate transactions?
Similar issues existing in commercial real estate. There is definitely a push to do the entire deal electronically but with speed there are inherent issues.
From a law firm standpoint, going paperless is always a goal - especially with a technologist like my partner, Dan Smith. From managing the deal, moving work product around electronically can be much more efficient.
It comes down to the reality, just like what Quicken Loans ad is saying - the world is changing, the process should be easier and will be easier - but real estate transactions are still a work in process.
Doing the Deal Digitally
At the 2015 CRE Summit we did a breakout session, "Doing the Deal Digitally". Many of these issues still exist and are being worked through as we process going full digital.