The real estate business is tough. You know what I mean: generating leads, closing transactions, and getting paid is a constant struggle. For brokers, agents, loan officers, title reps, escrow officers, appraisers, attorneys, and anyone involved in real estate, it’s critical to offer maximum value. How can we create the most value? One proven strategy is helping clients find the financing they need to make time-sensitive acquisitions and development plans happen. This article will discuss how guiding your clients toward reliable and efficient commercial real estate loans will secure their appreciation and loyalty. The more funding your clients obtain, the more deals you’ll close, and the more fees you’ll take home.
Sources of Commercial Real Estate Loans
Today, it seems as though there’s many options available in the lending marketplace. Consequently, it should be easy enough for clients to obtain the commercial real estate loans they need independently; however, this typically isn’t the case. While there are many funding sources available, many clients do not have the awareness or expertise to locate and secure them. As a trusted professional that knows the industry behind commercial real estate loans, you’re in an excellent position. You can offer the insight and guidance they’re looking for. Additionally, the array of options available and the complexity of the funding process often overwhelms and intimidates borrowers.
Even experienced real estate developers often have trouble finding the financing they need due to the limited availability of credit for specific project types or markets. Individual credit factors and the level of development experience can also hinder clients in finding the financing they need to move forward. Finding financing requires extensive networking, research, due diligence, and time, many things of which busy developers don’t have. There is a wealth of untapped opportunity available to real estate professionals that can bridge the funding gap for clients.
Partnering with a Reliable and Experienced Lender
You know the opportunity is there. How can you take advantage of it for the benefit of all stakeholders in your real estate industry business? Start by considering the type of clients you serve most. Are they multi-family, or commercial developers? Do they focus on land acquisitions, or infill development? Knowing your client’s needs will help you identify the type of funding they require, what they can afford, and where to start looking. Reach out to your professional network. Get on the phone and speak with successful clients and professionals in your niche and inquire about their funding sources.
With this in mind, take your search online and seek out conventional lending sources, private money lenders, and crowdfunding platforms that serve your industry. Give special emphasis to lenders that have experience in your industry and have underwritten substantial loan amounts, and numbers of projects. Moreover, the funding platform you choose to collaborate and establish a relationship with will have a tremendous impact on your credibility. In addition to supporting your reputation, working with established lenders will increase the potential for successful closings.
Securing Commercial Real Estate Loans and Closing More Deals
Referral and collaborative relationships are an integral aspect of success in real estate, but what about the technical side? What will be your responsibilities and how will you work with underwriters? Will you retain and control the relationship with your client? Or, will the lender take over and remove you from the equation (and continued earnings). Every lender is unique and will have varying practices. Look for a partner that will respect your relationship with your clients. Ensure they will respect your right to earn whatever fees are due to you given the nature of your relationship with your client. Likewise, consider what is customary and legal for your profession.
If your lender side-steps you in interactions with your client, it will diminish your status and lead to less repeat and referral business. Additionally, working to find and secure commercial real estate loans for your clients can also create extra work for you. If you’re already inundated with tasks, it can be difficult to manage the additional load. Consequently, lenders that offer a streamlined underwriting and approval process will make you more efficient. The less time you spend gathering the needed documentation and communicating with both parties, the more effective you can be. Finding the right balance in working with a lending partner allows you to focus on generating new leads. Correspondingly, it will allow you to devote more attention to existing transactions to ensure successful closings.
Building Your Business
Doing more than what you’re required, what Napoleon Hill calls ‘Going the Extra Mile,’ is a proven way to establish your unique value and brand position. Finding commercial real estate loans for your clients is an effective way to achieve this without creating excessive extra work. Creating a working relationship with a reputable funding source is the fastest way to embrace this opportunity. Please reach out to us today or click here to learn more about working with a leader in commercial real estate loans.