How can you use your network to find the best commercial real estate financing options?

It is important to match the borrowing need, short or long, with the proper loan terms. For example, current assets generally call for short term borrowing, while fixed assets or permanent working capital generally require long term financing. Mismatched financing could have a negative impact on cash flows and debt service coverage.

To find the best commercial real estate financing options, you can leverage your network by connecting with brokers, agents, investors, and industry professionals, joining online forums and groups, and using social media. Additionally, you should shop around for the best rates, consider different types of financing, understand the loan terms, and work with an experienced commercial real estate attorney.

Tap into your existing contacts; colleagues, industry peers and mentors, to gather insights and recommendations. These individuals may have first hand experience with various financing options and can provide valuable advice. Attend industry events, conferences and networking events related to commercial real estate. Engaging with professionals in the field can broaden your network and expose you to a range of financing possibilities. Use platforms like LinkedIn to connect with professionals in the commercial real estate and finance sectors. Reach out to local real estate associations, chambers of commerce and business networking groups. These organisations often host events where you can meet lenders and financial experts.

An important factor, even more significant than understanding your financing needs, is the establishment of clear project goals and objectives. When you have well-defined goals, deciding which product or service would best help fulfill that goal will be much easier to define. The next step is to engage with financial advisors, banks, private lenders, and hard money lenders. Share your project goals with them, providing an opportunity for them to present viable financing options tailored to your objectives.

Bestselling author Harvey Mackay reveals his techniques for networking in the art of building contacts in the book "Dig Your Well Before Your Thirsty." In this book, he shares the importance of developing your personal and high-value network before you have needs. Understand that your network is the most valuable asset you have. A network of authentic relationships with people you genuinely want to help succeed. Now that you have a clear set of goals for your commercial project, you can tap into this network with a short request for advice, some of their time, or refer you to someone who might be able to help further.

I start by reaching out to trusted professionals like brokers, agents, attorneys, accountants, appraisers, and contractors that I've built relationships with over the years. They not only give advice and recommendations but also connect me with key players in the financing world. By openly discussing my clients' needs with these contacts, I uncover reliable lenders that match the specific requirements of the commercial projects I'm handling. Building personal connections is crucial, so I actively seek introductions and referrals from these industry professionals. I've found that people are willing to recommend partners or clients they've successfully worked with.

I’ve cultivated relationships with commercial real estate lenders for a few decades. This is a small but reliable Network that I’ve come to trust over the years. It was important to me to diversify the types of commercial lenders I needed. Multifamily, small apartment, buildings, mixed juice, and other commercial property types. It has served me well over the years. I would recommend a similar strategy for any individual doing loans today. Find the types of products you need, and work with a very small group of people you can trust. It takes time, but it’s well worth the journey.

Trust is the core of any human interaction that leads to an agreement or a deal. Be authentic, respectful, open-minded, have integrity, reliable and empathetic. Let your moral compass guide your decisions, and take responsibility for your actions

Trust is earned when both parties show both reliability and performance over a period of time. As someone that has been solicited by new lenders for many years, it’s difficult to break away when you work with people you, know like and trust.

I can say that often times people buy trust and invest in trust.. so, the relationship you build goes a long way in opening up and enhancing inflow of finance for real estate projects..