If there is one thing seasoned real estate investors know, finding the right bank to finance your venture is just as difficult as finding the right property to purchase. Banks and lenders aren’t tripping over each other trying to get your account and lend you some money. Since the 2008 recession, securing financing has taken a turn for the more stringent. Here is what you need to know if you are going to pursue a loan for a commercial real estate investment.
Ask for Referrals From Other Investors
If a bank has been in the business of lending money to other investors, it would be a safe assumption that they would be willing to extend a loan to you. You have better odds by starting with these banks.
You can go to the local chapter of the Real Estate Investor’s Association and talk to others who are in the process of getting loans or who have already secured them. Always think about referrals when talking to other investors.
Be Specific in Your Networking
While working the investor crowd is sure to give you some leads for a potential bank, you should also try to find out where bankers socialize and network there. Attending local or national investment conferences or commercial real estate regulation symposiums can be a place to find bankers.
You can also try property management associations or your local chamber of commerce meetings. Some banks even sponsor their own networking events or conferences.
Start Calling Around
In the very least, you can go old school and start cold calling local banks. Run through the Google listings and ask to speak to a lender when you get someone on the line. Explaining what you are looking for and asking their interest or banking policies in the investment area will tell you what you need to know.
Without the right banker behind you, your real estate investment is only going to be a pipe dream. You may have to work hard to find the right lender, but it is possible.