How to Find a Headache-Free Commercial Real Estate Financing Process

Posted by Melinda Toy on Jan 13, 2016 06:00:00 AM

Topic: ALL

Outside view of apartment building

Are you searching for a Commercial Real Estate financial partner? The process of finding the right financial institution for you and your business may not be an easy task. But with the appropriate questions, you can determine which financial institution will help you achieve your goals. 

How easy is the banking process?

Make sure you do your research. The more you know, the more empowered you’ll be to prepare and make the right decision about which lender to partner with on a project. Depending on the size of the bank, there may be several tiers of approval before you can move forward. Is management involved in the decision making process? Do you know who is making the decisions and how connected your is lender to them? The more streamlined the cycle, the easier and faster it will be to get your loan and get your project moving.

Does your lender understand the local climate?

How much does your bank know about the area you’ll be developing in? Although you may be able to get by with a decent banking partner at an acceptable rate, it may benefit you to have a trustworthy expert who knows the local community and understands your goals.

What types of projects has the financial institution worked on before?

Make sure you do your research and examine the institution’s portfolio. Does the potential bank specialize in multi-family or construction projects? Do they handle refinancing and acquisition projects? What is their track record with syndicated loan deals? Know and be confident in their experience and success in handling projects like yours.

What is the bank’s lending capacity?

It could be a headache to start the process and realize there is not enough capital to meet your needs. You may potentially need to put a syndicated deal together, which could further draw out the process, or you may need to look for another lending institution altogether. 

To learn more, contact one of our local Commercial Real Estate experts.