The #1 Way to Lock in the Best Possible CRE Rate
By Roger Porter and Olga Brandeis
Anyone who operates a commercial real estate business or owns a portfolio knows there are a lot of moving parts. You have to think strategically at every turn while unexpected hurdles get thrown on your path. If you get behind or a ball gets dropped, that can make the problem compound into an even bigger one. The good news is I’ve been working in this business for over twenty years, and I’ve found useful ways to manage all the moving parts.
In my last blog, I talked about Gary Keller’s book The One Thing and how starting small and building to huge results is the best way to grow your business; I even gave the example of getting your real estate portfolio in order for potential cost savings through refinancing.
To extend this idea, the best way to keep the parts moving once you’re going is to get organized and stay organized. What do I mean by that? In Yvonne Orji’s funny and insightful book, Bamboozled by Jesus, the Insecure star shares stories from her memoir that speak to the heart of getting organized; she especially channels this hard work ethic in the aptly titled chapter, “If You Stay Ready, You Ain’t Gotta Get Ready.”
Yvonne breaks it down for us: “Preparing for your big moment like it could come at any moment, is what staying ready so you don’t have to get ready means. Your day is coming, your opportunity will arise, but the question is, will you rise to the occasion?” Her simple yet poignant words empower us to prepare every aspect of our deals and businesses for big wins down the road.
In the commercial real estate finance business, the number one way to lock in the best possible rate is to be ready. The rates fluctuate with market conditions – from global events and industry headwinds to acts of god and rogue CEOs. With so much unpredictable change, which can have an enormous impact on the rates, your commercial real estate portfolio in ready mode gives you the leverage to potentially lock in lower rates, delivering favorable terms and huge savings.
There are four documents you need to stay ready.
What does being ready in this situation look like? It starts with having your financial statements in order. Here is your handy list of financial items you’ll want to have prepared to stay ready:
Schedule of real estate
Personal financial statement
Bank statements
Tax returns
Gather these documents and work with a skilled mortgage broker like me to make a move when timing aligns. I can show you how this simple yet highly impactful readiness tactic will help your commercial real estate portfolio grow. But we can’t rush or force the process. We must prepare our businesses so that when opportunity knocks, we are already in the place where we can receive. Don’t believe me? Let Yvonne show you the way:
“Stay focused on becoming your best self… run the drills, read the trades, study the greats, book the flight, audit the class, write the proposal – do whatever it takes to stay ready. All you can do is prepare for that moment, like [you] expect it to happen.”
It's not just readiness I can help you with. I'll open up a larger conversation around how your loans can help you achieve your business goals -- from cost saving tips on loan negotiations and new deal points, to long-term growth strategies.
What is your experience with readiness, reader? Post a question or comment in the Contact Form and give us a follow on our LinkedIn page.
