All Forum Posts by: Dane Conrad

🔹 10 Strategies to Secure the BEST Loan Terms in Today’s CRE Market 🔹

In an environment where lending standards are tightening, Brokers must help secure optimal loan terms for their clients. This is critical for investors, brokers, and property owners. Whether you're financing multifamily, office, or retail properties, these 10 strategies will give you the edge:

1️⃣ Strengthen Your Borrowing Profile

Lenders favor investors with strong liquidity, high credit scores, and well-documented financials—get your numbers in order before applying.

2️⃣ Build Long-Term Lender Relationships

The right banking connections can unlock preferred terms, lower fees, and flexible financing structures not available to the general market.

3️⃣ Shop Multiple Lenders—Strategically

Traditional banks, private lenders, credit unions, and CMBS financing all have unique advantages—negotiating multiple term sheets ensures the best deal.

4️⃣ Structure Financing to Align with Investment Goals

Don’t just settle for the lowest rate—consider loan covenants, prepayment flexibility, and amortization structures that maximize ROI.

5️⃣ Leverage Debt Service Coverage Ratio (DSCR) Strategies

Lenders scrutinize DSCR metrics—position your property’s income to ensure strong debt service coverage and better financing terms.

6️⃣ Stay Ahead of Interest Rate & Market Trends

Understanding Fed policy shifts, cap rate compression, and liquidity cycles can help you time financing decisions strategically .

7️⃣ Explore Alternative Lending Channels

Private lenders, family offices, mezzanine financing, and SBA loans can offer competitive solutions for unique investment structures.

8️⃣ Optimize Loan Exit Strategies

Investors should structure loans with refinancing flexibility, equity release opportunities, and clear exit strategies to maximize leverage.

9️⃣ Navigate Complex CRE Loan Structures

Interest-only loans, CMBS options, bridge financing—custom solutions can optimize cash flow and returns for high-net-worth investors.

🔟 Close Deals Efficiently

Whether you're a CRE Broker, a property owner or borrower, streamlined execution and proactive problem-solving ensure deals close smoothly.

🚀 What strategies have helped you secure the best CRE loan terms for your clients?  Drop your insights below! Let’s talk real-world financing solutions.

#CRE #CommercialRealEstate #FinanceStrategy #LoanOptimization

Quote from @Shango Collier:

@Dane Conrad Hi Dane, would you consider working with someone that meets 3 of the 4 you mentioned? 

Perhaps, depends. 
Experience is critical for our Private Capital team because we’re old and like to sleep well and not worry ;)

Can you briefly describe your project, the scenario, ie, size, location, type, timing? 
I typically know at first look if a project is of interest to our investors.

Thanks Shango,

DC
 

CRE Brokers, Mortgage Brokers, share your feedback, thoughts, insights here with the BP members.

Are your clients having difficulties finding the right capital for their projects?

📢 CRE Professionals-Brokers & Mortgage Brokers—Market Shift Alert

U.S.-China tariff reductions have triggered a rise in Treasury yields, now exceeding 4.4%.

This shift impacts CRE lending rates, making capital more expensive- tightening lender risk models.

📊 Key Numbers CRE Brokers Need to Know:

🔹 5-Year Treasury Yield: Jumped from 3.81% on May 1st to 4.00% on May 9th.

🔹 Fed Interest Rate: Holding steady at 4.25%-4.5%, but inflation concerns remain.

🔹 CRE Lending Rates: Expect higher borrowing costs as lenders adjust risk models.

💡 What This Means for Brokers:

✅ Financing structures will need adjustments—capital stack planning is critical.

✅ Lenders are adapting rapidly—borrowers must be prepared for changing requirements.

📊 CRE loan rates are closely tied to Treasury yields. As yields rise, lenders increase rates on new loans and refinancing, leading to higher monthly payments for borrowers.

Refinancing Challenges: Borrowers with loans maturing soon may face significantly higher debt service costs, complicating efforts to refinance or restructure existing deals.

Deal Volume and Investor Appetite: Increased borrowing costs can reduce cash flow and returns, causing some investors to pause on acquisitions or demand price concessions. This may slow transaction volume, particularly in sectors already under pressure, -office and hospitality.

Strain on Highly Leveraged Owners: Owners with high leverage will feel the squeeze most acutely, as rising rates erode profitability and limit flexibility in tenant negotiations or property improvements.

What CRE Brokers and Borrowers Should Expect

Short-Term Volatility: While the tariff truce is positive, a comprehensive trade deal is still in works.

Treasury yields may remain elevated or volatile as negotiations continue and markets digest new information.

Tighter Lending Conditions: Lenders may respond to higher yields by tightening terms-lower LTV ratios and more conservative underwriting.

Strategic Planning Needed:

Brokers should advise clients to act carefully if considering refinancing or new acquisitions, as rates could rise further. Creative deal structuring and strong lender relationships will be essential to navigate the evolving landscape

Bottom Line:

Today's trade breakthrough has lifted market sentiment but also pushed Treasury yields-and therefore CRE lending rates-higher. CRE brokers and borrowers should prepare for increased borrowing costs, tighter lending standards, and a more competitive environment for financing. Staying informed and proactive will be key as the market adjusts to these rapid changes.

Happy Mother's Day to all the hardworking Moms out there!

Reflecting on the invaluable lessons imparted by my very first Real Estate mentor, a smart, seasoned RE Broker who excelled as a Top Pro Listing agent. She emphasized the essence of cultivating trusted relationships in real estate, transcending mere transactions. "Remember your clients’ names, their families, even their dogs' names," she advised, stressing the significance of making every client feel valued and special. "Send them Cards, ask them how they're doing, drop by and visit, leave a gift"

Her wisdom from the 1980s as a top Coldwell Banker Broker resonates still today and has shaped my professional journey and inspired me to mentor numerous RE Professionals over the past three decades. The key takeaway - prioritizing genuine connections over transactions fosters repeat business, robust referral networks, and enduring success in the RE business. It worked back then, it still works today, 40 yrs later.

To my fellow Brokers, Agents, what relationship-building strategy has proven most impactful in your career? Share your insights on the most difficult challenges and obstacles in your business today. Let's engage in a meaningful exchange of experiences and solutions!👇


#RealEstate #RelationshipBuilding #PrivateCapital

Quote from @Shane Bishop:

Hello! My wife and I are current real estate investors looking to expand our portfolio into the STR market and we have identified a potential opportunity in the upstate of SC. Capital is always a major hurtle though, so I wanted to ask if anyone had any recommendations on how to build relationships with private lenders or knew anyone that would be willing to walk us through the private lending process. Any advice would be greatly appreciated! We haven't done anything outside of conventional lending so this would be a new journey for us, but we're excited to learn!

Hello Shane,
See some good advice here, as a long time Private Capital provider I look for recent related experience first-like for like. Then SiG- skin in the game from sponsor. A good track record and healthy investment from the borrower usually 
gets our attention. If you have questions ping. 
Best,
Dane

Thanks Austin,

What are your top challenges in the business lately? 
I have a recent funny of fixing a borrowers credit score, took a bit but he finally qualified and loan closed. 

Great Dane 

Hey BP
30 year CRE lender-investor-owner-operator here.
Friends call me the Great Dane, (I love Doggies)
Been helping folks obtain the private financing needed to grow their businesses since late last Century so Yes I’ve seen more than most and been around many cycles.
At my advanced age I love bringing value by solving the most difficult challenges in this business.
Latest were two projects on West Coast, one a 2m luxury horizontal development needing quick private capital and second a 2.5m multifamily acquisition the sponsors bank bailed, a quick bridge saved it. 

The wrap- I’m here to solve problems, that keeps my mind sharp, that’s a good thing because of all the things I’ve lost in this life, my mind is the one I miss the most.
Luv swapping funny stories and sharing hard-earned insider hacks.
Still learning this online stuff so go easy on me, at first.;)
If anyone has a challenging loan or problem sitch needing help, just ping, I’m friendly. 
Hit me with your best—or your worst, I can take most anything and solve for XY or Z. 
Thanks for having me BP 

Best, 
GD