According to Mashvisor, 9.5% is the average return when it comes to commercial real estate. A good commercial real estate lender should work with clients to offer interest rates and returns that are beneficial to both parties. And, before you accept any commercial loan, be sure to carefully review the repayment options. These qualities are ones that you should look for when choosing a commercial real estate lender.
Proximity and Relevant Market Knowledge
Real estate is local. If your lender is on the other side of the country and doesn’t have a presence in your local area, they may not be the right choice. There’s a lot to be said for sitting down face-to-face with one’s lender or business associates. The relationships that are forged through in-person meetings can create an enjoyable business-focused experience. It’s also beneficial for your lender to understand the real estate market where your asset is located. Without this local knowledge, they can’t be a strong financial partner.
Lender’s Capital Profile
The right lender will be in that sweet spot that best meets your needs. They’re not so big that you’ll simply become a number and be subjected to impersonal service. They’re not so small that there are capital risks involved with doing business with them. The right-size lender has the capital necessary to provide security and is attentive to your needs. Banking is a relationship business, and you’ll want a lender that understands your unique needs.
Additional Services on Offer
Your commercial real estate lender should be able to assist you in other financial areas. If you need a working capital loan or want to learn what equity lines of credit may be available, they should be able to provide assistance. At the very least, they should be able to offer a strong referral or introduction to an appropriate party. Building a strong relationship with your lender is simpler to do when they are servicing more than one of your banking needs.
Commercial real estate investing can be a risky industry. It is imperative to have a lender who understands your business and is able to help you meet your company’s financial goals. The right commercial real estate lender will be by your side throughout the entire loan process. Contact West Coast Commercial Captial LLC today and find out more about our services.