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.
