Why Site Visits Are a Must When It Comes to Working Your Deals

 When it comes to working through and closing a commercial loan deal there are numerous items that you must check-off your list, official documents to obtain, services to provide, and other administrative style tasks to complete.

However, a “must-do” activity that many commercial brokers and lenders may underestimate the value of is the official site visit. The site visit not only puts you face-to-face with your client – which can be especially beneficial if working with the client from out of area or out of state – but, it also allows you to take a proper assessment of the property, the surrounding area, and ensures a better understanding for what your client is trying to accomplish with the property and / or structures when obtaining the desired commercial loan.

Another thing to consider when working through a deal is that the commercial bank looking to fund the loan may also require photos of the property, structures, or building so that they, too, can better their understanding of the property and the borrower’s needs. Performing the site visit yourself will allow you to personally take the photographs as well as work through initial issues or hiccups that could potentially arise with the bank and/or lender – furthermore, it’ll build a strong relationship between you and your client as the deal becomes more personable.

With the ever-changing landscape of our nation’s economy, commercial banks and lenders are putting more scrutiny on the deals that come across their desks. The deal package you present will have an increased value to his competitors as you are strengthening your client’s story as well as decreasing the amount of legwork that your lender will have to do when it comes to finalizing the loan.

You have a site visit scheduled with your client…you may now be asking yourself, “what’s next?”

Here are a few tips for performing a site visit on a commercial investment property:

  • Schedule the visit during the day and ensure your client will be present. This will give you the best chance of seeing the property in its natural light as well as give you a better chance at contacting anyone who is involved with the deal and/or property.
  • Bring a checklist. This will help you make sure that you inspect all the important areas of the property. Yes – you will have a professional inspection of the property performed, however, inspecting those top checklist items will give you additional insight on the off chance that questions or other concerns may arise.
  • Take pictures! Photos will help you to remember the property as well as serve as a record for any problems you find. Photos will also not only aide you in closing this current deal, but they can also be excellent marketing resources for your business once the deal has closed and the loan has funded.
  • Ask questions. Now is your chance to build on your client relationship. Learning about the perks, concerns and information in relation to the property is much easier when discussed face-to-face.
  • Be prepared to walk away. If you are not comfortable with the property after the site visit, you should be prepared to walk away from the deal. While this is not always the outcome we want to arrive at, allowing yourself to walk away sooner rather than later can save you time and money opposed to walking away at the closing table.

Have questions about an upcoming site visit or want to know more about scheduling a site visit for an upcoming deal? Contact our team! We would love to work alongside you on a deal…or even be a sounding board for questions and ideas!

Submit your questions or deal inquiries via the contact form linked HERE.

by Leah Waldrop

ACS Welcomes New CFO

Please help us give our new Chief Financial Officer, Michelle Jordan, a warm welcome! Ms. Jordan joined our team this October and hit the ground running by joining us at the NACLB Conference in Las Vegas. Prior to her employment with us, Ms. Jordan served in several roles including Corporate Controller and CFO for a variety of financial services companies in the Nashville area. Ms. Jordan is a licensed CPA in Tennessee, and she earned her BS in Accounting from Lipscomb University in Nashville. Ms. Jordan is a member of the AICPA and TSCPA and she resides in Williamson County, Tennessee.

by Leah Waldrop

Our In-House Credit Team Has Two New Faces!

We are thrilled to have added Harrison Fuller and Gideon Goodmanson to our team of Credit Analysts earlier this year.

Harrison joined ACS as a member of our Credit Team in September of 2022 after spending two years in the hospitality industry. During a college study abroad program, he discovered how much he enjoyed working with and creating connections with a multitude of individuals. Harrison’s favorite aspect of his role as a Credit Analyst is building lasting relationships with clients and supporting them to accomplish their goals.

Gideon Goodmanson also joined our Credit Team as an Analyst in September of 2022.  He previously worked in the automotive industry as a salesman. Outside of his time at ACS he enjoys outdoor activities such as off-roading and skeet shooting.

Harrison and Gideon are both already off to a roll serving our clients and are looking forward to a busy 2023!

 

 

by Leah Waldrop

The Right Strategy: Professional and personal development will help you find greater satisfaction

By: Keely Pate, Alternative Capital Solutions: Director of Development

Published for The Scotsman Guide / July 2022

Commercial real estate professionals have diverse backgrounds and experiences. After the initial entry into the business — whether through an employer or a training program — lenders, brokers, credit officers and other industry professionals all navigate their own unique career, both professionally and personally.

Where these professionals find themselves at the beginning of their careers, however, is not the final destination. Expanding knowledge and building new capabilities can lead to increased effectiveness and personal satisfaction. With ongoing regulatory and economic changes, technical advancements, and shifts in personal preferences and priorities, savvy lending professionals continuously evaluate where they are and where they want to be.
Continuing education enables mortgage finance professionals to maintain existing certifications and licenses, keep up with industry trends, diversify skill sets and prepare for new growth opportunities. With so many options in the marketplace, and limited time and resources, it can be challenging to identify the right development path for each professional’s unique needs and future goals.
An ongoing and intentional continuing education strategy can help commercial real estate professionals connect activities to desired outcomes while generating increased effectiveness and satisfaction. To quote John C. Maxwell, the renowned leadership expert, speaker and author, “If you want to reach your goals and fulfill your potential, become intentional about your personal growth. It will change your life.”
You may be familiar with the concept of using a SWOT analysis to consider the strengths, weaknesses, opportunities and threats to a business or product. A personal SWOT analysis can help generate clarity about an individual’s current state of development, and the results can be used to map out an intentional path forward when it comes to professional development activities.

Evaluate your strengths

The first step is to evaluate current strengths in the areas of knowledge, skills and abilities. Then, through self-reflection and constructive feedback from others, consider weaknesses by identifying behaviors that could potentially jeopardize relationships, as well as gaps in knowledge or skills that could possibly lead to oversights or missed business opportunities.
After that, consider possible external threats that could hinder professional performance and results. Lastly, evaluate opportunities that are available within the industry and your community, as well as your professional network and other places.
The commercial mortgage industry, as those involved quickly learn, offers endless opportunity to specialize and diversify. The key for each professional is to identify which areas of specialization and diversification are right for them.
Your desired future might involve the identification of new clients within a current niche, expansion into a different geographic market, or even a new product launch or service offering. Painting the picture of a desired future expedites the decisionmaking process for professional development.
Once the current state and desired future state have been defined, it is time to explore specific continuing education options and evaluate how each initiative will lead to the desired result.
Resource constraints such as time, funds and logistics will largely factor into the selection process. The following programs and activities outline continuing education options that professionals in the commercial mortgage field have utilized, along with the connection to desired business results.

Licenses and certifications

When prioritizing continuing education, mortgage professionals should first understand the applicable state licensing requirements and the educational requirements to maintain that license. After that, optional certifications and other continuing education activities can be considered.
Jobs within the mortgage industry have varying licensing requirements, which also can differ from state to state. Currently, the distinction that drives licensing requirements is consumer lending versus commercial lending. Most consumer protection regulations are not applicable to loans made for business purposes. But regulatory changes may impact licensing requirements, subsequently affecting continuing education strategies for commercial mortgage brokers and other industry professionals.
Professional certifications are usually voluntary initiatives for individuals to gain proficiency and, particularly when granted with an exam, demonstrate mastery of related knowledge. Although some certifications require continuing education, most do not.
Colleges and universities offer a variety of adult continuing education programs. These are typically led by expert industry practitioners or faculty. Ranging in duration from a few days to several weeks, the programs usually include in-person learning, virtual learning and self-paced e-learning. This flexibility makes programs in other cities and states a possibility for professionals with busy schedules.

Networking opportunities

Another reason to take part in continuing education programs is the opportunity for networking. The adage, “It’s not only what you know, but also who you know,” rings true for those in the commercial mortgage industry. An active network of brokers, lenders, accountants, attorneys and business owners offers the expertise needed to meet your clients’ needs.
Establishing a greater presence on social media has enabled mortgage professionals to expand to new geographic markets and reach potential clients outside of their existing professional networks. Online sites offer a wealth of resources that show how to better utilize social media.
Videos on YouTube, posts on Reddit and simple Google searches offer step-by-step instructions and free online tools to help market your services on platforms such as LinkedIn, Instagram and Facebook. Even if the decision is to outsource and have someone else manage your social media strategy, having a foundational knowledge of options and strategic considerations can lead to more informed decisions.

Skill expansion

Regardless of the industry, busy professionals can build capabilities through the expansion of skills outside of their direct job roles. For example, an experienced commercial mortgage professional dedicated time to the study of jiu jitsu. They found that it helped their ability to stay calm and solve problems under pressure.
Developing this skill relates to work situations, interacting with clients and troubleshooting challenging situations. As this person put it, there are many times in jiu jitsu where you are in a bad position with an opponent and panicking will only make it worse. You must learn to be comfortable being uncomfortable and to think through the solution, because overreacting will not help the situation.
A business coach also can help a mortgage professional develop new skills and strengths, including the ability to better understand situations and effectively respond to them. Many people use their own experiences and perceptions to interpret situations, then act without fully understanding the intent and motivation of others. Responding effectively, in a way that meets the needs of the situation, can make the difference in securing a client and closing a deal when the stakes are high.
In a dynamic industry such as commercial real estate finance, professionals who can listen to the client’s needs and develop effective solutions are better prepared for success. Increasing self-awareness and awareness of others helps to develop emotional intelligence or emotional quotient. Having emotional intelligence allows professionals to respond thoughtfully to situations. Utilizing a business coach, completing a personality assessment, and learning about conflict and communication styles are tools that can result in consensus building, clarity, and satisfied clients and stakeholders.
•••
Continuing education is not a one-way journey with a single destination. Instead, it serves as a resource to help professionals achieve desired results. It is one step within an ongoing strategic process of envisioning potential outcomes and then mapping a strategy of how to get there.
With changing external opportunities and obstacles — and with new programs and continuing education options — regular review and reassessment is a best practice for staying current and achieving fulfilling professional outcomes. After all, if you want to reach your goals and fulfill your potential, become intentional about your personal growth. It will change your life.

 

by Leah Waldrop