Insights Jan 16, 2017

Investors Don’t Have to Settle: Here’s How to Find the Best CRE Deals

Experienced investors know there is no magic formula to discovering the best investment deals. There’s no reason to work on deal that doesn’t fit the a lender’s criteria. For Alex Modell, an associate at Maxim Capital Group, sourcing quality investments is about hitting the pavement with a mix of strategies. “There’s no secret sauce. It’s cold calling, searching through online listings and platforms, similar to RealAtom, and being top of mind with mortgage brokers.”

Whether a private real estate investment firm like Maxim Capital Group, a hard money lender, or alternative or traditional lender, top investors utilize these strategies to target the best commercial real estate deals.

Referrals

1720-business-man-offering-hand-shake-pvWord-of-mouth from trusted contacts can be a great resource when it pursuit of the right deal. One of the benefits of providing top notch service for existing clients is they typically run in circles with developers, owners, and operators that qualify for similar funding.

“Existing clients have led to great deals for us because they’re your best marketing tool,” said Modell. “They’re able to say firsthand what a pleasure it was working with us as a lender and how quick and easy the process was.”

Referrals can come from existing personal or business relationships, smaller firms operating in a niche area, current or former clients, and LinkedIn. Nurturing professional relationships and taking care of received referrals continues seeding future investment opportunities.

Cold Calling

Sometimes the best way to find a gem is to roll up the sleeves, break out the contact database and make some cold calls. Start with an existing or former client list before searching classifieds or online listings. Read the news. New or expanding businesses often need capital– don’t be afraid to ask if they need a loan.

Mortgage Brokers

Mortgage brokers constantly receive new clients. Keep in touch with the right brokers on a regular basis. Let them know the benefits of a borrower working with your firm. Consider creating a email mailing list specific to mortgage brokers with regular updates on the lending packages available. When the right deal comes along, your name should be first on that broker’s mind.

Online Marketplaces

Modell knows that technology has improved the deal-making process tremendously, from sourcing leads to conducting due-diligence. Using an online marketplace cuts out the middleman, which translates to reduced fees for the borrower and investor. Plus, being able to view the borrower’s successful track record and loan-to-value instantly is an added bonus. “Starting a relationship with a borrower that has a strong track record is very important to us because it shows that if the transaction goes sideways, they will find a way to ensure everyone becomes whole at the end,” said Modell.

Today’s marketplaces provide lenders with the right data they need to judge a deal upfront. Lenders can program specific criteria and receive leads that match, making finding the right deal more efficient. A marketplace, like RealAtom, is specific to the commercial real estate properties and facilitates deals ranging in value.

Building the right relationships and using the right tools is vital in finding the best CRE deals. Focus on the target developers and owners that match your investment criteria and deploy a mixed approach involving traditional and online marketplace sourcing to land on the quality projects.

——

Alexander H. Modell is currently an Associate at Maxim Capital Group, a real estate investment firm in New York City. Mr. Modell is focused on mortgage originations, investor relations, and business development.

More articles

Joseph Choi: Bet on Berkadia like Buffet

Joseph gives us a detailed breakdown of Berkadia and his journey with the company. He walks us through recent deals and how Berkadia is providing unique value to its clients. If you can, it's worth viewing the slides in our...

Continue reading

Cam Deacon: Making Business Choices in the Relationship Game of CRE

Luis Delgado: (00:04) Welcome everyone to the RealAtom podcast series, where you will learn about brokers on the RealAtom platform and the organizations that they represent. My name is Luis Delgado, I’m an Account Executive at RealAtom. RealAtom is the...

Continue reading

From Russia with love: Gabriel’s journey from a hardware store in Russia to Managing Director at SVN

Luis Delgado: (00:04) Welcome everyone to the RealAtom broker podcast series where you’ll learn about the brokers on the RealAtom platform and the organizations they represent. My name is Luis Delgado, an account executive at RealAtom. RealAtom is the industry’s...

Continue reading

Ready to get started?

Get in touch to create an account

RealAtom - Automate your loan process, delight your lenders | Product Hunt Embed