You Won't Believe the 5 Shocking Secrets a CRE Veteran Reveals to Close 80% More Deals FAST!

In the competitive world of real estate financing, the way a borrower or broker approaches lenders can significantly influence the success of a deal. Nathan Cohen, a seasoned intermediary in the industry, highlights a common pitfall: when multiple brokers present the same deal to lenders, it can create distrust and reduce the perceived value of that opportunity. For instance, if a lender receives several calls about a property—such as a shopping mall in Bentonville, Arkansas—from various brokers in a single day, it raises red flags. “Because as an intermediary, if you're the lender, and I call you up and I say, ‘Hey, I've got a great deal: It's a shopping mall in Bentonville, Arkansas,’” Cohen explained, “and you're like, ‘Nathan, come on, man, I've seen that deal 15 times today from 17 different people.’ Then it discredits me. It disheartens me. It discredits the borrower. The lender thinks that the deal's horrible. It’s just not a good way to go.”

To avoid this situation, Cohen suggests being transparent when approaching an intermediary who will help pitch a deal to lenders. This transparency can include providing a list of lenders that have already declined the deal, which would help the intermediary avoid redundancy. “I would tell them, ‘Hey, listen, I know this is a complicated deal, and I'm sure you've talked to a number of people,’” he said. “’I don't want to cause your transaction to look bad. I'm willing to sign a non-disclosure. Why don't you give me a list of the people I should not contact?’” Although obtaining such a list may prove challenging, Cohen notes that sophisticated borrowers often share which lenders they have already approached and the reasons for those interactions.

Moreover, Cohen emphasizes the importance of understanding the various financing options available. When discussing potential avenues for loans, he advises borrowers to consider a range of options, including HUD loans, Fannie Mae loans, Freddie Mac loans, bank loans, CMBS loans, and life insurance company loans. “If you looked at an apartment building,” he suggests, “have you looked at doing a HUD loan, a Fannie Mae loan, a Freddie Mac loan, a bank loan, a CMBS loan, a life insurance company loan? Which one of these have you looked at already?” This approach not only informs lenders about the borrowers' prior efforts but also opens up avenues for creative financing that might not have been considered initially.

The real estate financing landscape is complex, and understanding how to navigate it effectively is crucial for both borrowers and brokers. By being transparent and strategic in their communications, they can foster a more positive perception of their deals among lenders. After all, trust and clarity are essential elements in securing financing in a market characterized by competition and scrutiny.