Acquiring capital is just the first step. Use these pragmatic strategies to make sure your company unlocks the full value of a commercial real estate loan.
A commercial real estate loan can create a long list of new opportunities for your business. However, just qualifying for a loan and spending the added capital does not guarantee a significant return for your company. Plenty of thought and planning must go into the process if your company hopes to get the full return on its investment.
When a high level of thought and planning is put into the project, your organization stands to see priceless benefits. That’s why the following tips are likely to come in handy. Develop a detailed investment strategy by using the following guidelines and ensure your company capital is well spent for the rest of the year.
1. Make decisions with the future in mind – Remember that trends in commercial real estate can be notoriously short lived. Afterall, great ideas seem less impressive once the entire industry has caught on. Your goal is to anticipate trends, not to just ride the wave. That.means your company will have to make it a priority to analyze the direction of the market, make judgement calls about trends and take risks to stay ahead of the curve. The commercial real estate industry requires investors to be intentional, committed and always ready to chase opportunities when the time is right.
2. Develop a plan for marketing the property in advance – One way to get back the full value of your commercial mortgage is to start the marketing process as early as possible. If your company has developed a detailed strategy for the project, then enough information should be available to start tracking down potential tenants. The more demand you can demonstrate for your project, the better negotiating position you’ll be in when you speak with a commercial lender.
3. Understand all your possible expenses – Your company won’t be able to leverage a commercial real estate loan if the project is blindsided by additional costs from the very beginning. That’s why it’s so important to plan around extra costs associated with a loan like lender fees, appraisal fees and origination fees. Taking extra time to look over loan terms and ask questions to experienced commercial lenders will help ensure that no costs fly under the radar.
4. Rely on data, not your instincts – It’s important that you avoid getting wrapped up in reactional investments, such as making a shift in the company’s commercial real estate strategy based on a hot take from a cable news pundit. The reality is that no one can accurately predict the market, just make educated guesses and rebound with confidence when they miss the mark. Stick to your data-backed, meticulous strategy if you want to see a substantial return on your investment.
Remember These Important Tips Before You Start Investing Your Commercial Real Estate Loan
The more prepared you are, the smoother your company’s experience will be when it comes to borrowing and investing.
Reliable market information and the insights of a professional can make all the difference.
Don’t be afraid to lean on somebody who knows the market. Local private lenders are a great resource for helping your company stay up to date on the latest market trends.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.