Anyone who is looking to get approved for a commercial real estate loan has got a lot on their minds, specifically ways to get approved. The good news in this is that there are certain things you can do (and not do) that will improve your chances. Unfortunately, many people who want to get approvals to focus too much of their attention on things that don’t improve their chances. This article focuses on what you can do.
The first thing people need to do before going in to see a lender is to come in with several things. With these items, your chances will improve significantly. Anyone with questions should Visit GlennGoldan.com for more information. Before then, here are a few ideas that will get you started successfully. As things go on, the success that you will enjoy will speak for itself.
Focus on You
Commercial lenders will want to know a lot about your knowledge of what you are getting into. They will be intrigued with what you know about markets, feasibility, rent roll demographics, and other technical aspects of their business, but above all their focus will be on you. They want to know who they are dealing with and whether they can trust you.
Ducks in a Row
Having your finances in a row is absolutely critical to success if you want to be approved for a commercial real estate loan. Any challenges you face in this aspect will need to be countered by partnering with someone who can help you to solve that issue.
Even if you have been involved in other types of transactions, commercial real estate is different, so lenders might approve you, but they will have conditions on their money. They might, for example, give you the loan, but they will want you to give in to certain conditions. It’s important to remember that this is a small price to pay to get started.
Work with a Mortgage Broker
The first few times an investor works on a deal, they will probably start by calling several banks and working with different people. That’s great, but it is almost a certainty that once you know the business better, you will probably end up working with one mortgage broker on all deals. There are times when a second one might be a good idea, but one will get you started.
Working with one mortgage broker is likely to inspire more honesty and forthrightness from that person, when you say, “This is what I have and this is what I expect, how much money can you get me?”
None of these methods in and of themselves is likely to make or break a commercial real estate loan, but once brokers get used to you and the way you work, chances are good that they will recognize you as someone who is likely to make them money, and in the long run, that’s a person who is good to stick with. This is one of those things that someone won’t learn even after they have been working in the business for a while and have worked with many brokers. All it takes is a few minor successes, and the proof will be in the pudding.