Commerical Real Estate
Is it typical that a real estate agent or a commercial lender will assist us with a business plan for the lending requirements?
Hello Mary,
Are you referring to the business plan for the SBA loan products? If so, the answer is sometimes. I have helped clients put together their business plans but some agents and lenders won't be as hands on. Just depends on the type of agent you are working with.
James Storey, CCIM
I would say, usually not. Better to work with a coach - I know a couple great ones. What are your goals?
Your question is way too vague. What a broker or agent might do depends on their specialty, ideal client, and business model.
Lots of brokers/agents that work for big firms do not make much money after splits with their commissions so they make up on volume. So many want to do next to nothing as that is all they have time for.
Conversely what I do with NNN properties is different. I tend to stay on the buyer side and then have a complete network I have built up over 17 years to help out.
1. Commercial retail attorneys
2. Retail Property management companies (if needed)
3. Capital Markets Mortgage brokers.
4. 1031 Exchange companies
5. Exclusive database of contacts built up over decades of time for on and off market properties.
I focus less on volume and more on quality with each client. I like clients that want a lifelong client relationship and to have that friendly connection.
I get to keep all my fee because I am the owner of the company. So they might have to do 60 to 100 deals to equal what I make on 10 deals.
Lending requirements by the way will vary heavily based on asset class and if (vacant, half- full, fully stabilized). Then you also get into credit of the tenant, years remaining on primary term of the lease, population levels, income levels of the area, crime levels, LTV of loan, length of fixed rate loan desired, full recourse, partial, non-recourse, amortization schedule, etc.
We haven't even gotten in to the borrowers info yet.
You would really have to expand and be more descriptive to comment further.
