How to Get a Business Loan for Commercial Real Estate. Charles Ph.D Barthelemy
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lenders can range from your traditional banks (BOA, Wells Fargo, BB&T, and SunTrust). Keep in mind these are just a few of the well known direct lenders that you may know of because they are mainstream. You have tons of direct lending sources out there that I did not mention. You do not want to limit yourself to just the well know sources. As I mentioned earlier you must do your due-diligence before making a commitment to the sources that are unknown.
Building A Relationship With The Direct Lender
A)Locating a direct lending source can come from a referral, someone you trust that has done business with this source and been successful.
B)It is very important to establish a solid relationship with that direct lender. There are several ways you can establish this relationship. Contact them on a weekly basis along with visiting them. You may also establish checking and savings accounts with that direct source.
C)Getting to know that individual is very important, having them understand your business needs inside and out. You want have full disclosure with this individual, no hidden secrets.
DEFINING A BROKER
A Broker is defined as an individual or company that acts as the liaison between you the customer, and the direct funding source. You must be able to distinguish between a reputable broker and a broker that is just charging fees and has no intentions on funding your project.
A Reputable Broker Is one who will disclose all fees upfront, which is their fees and the direct funding source fees.
A)One that will take the time to explain the funding process, whether that be educating you on certain programs that may be suitable to funding your project or just simply taking the time to listen to your project.
B)Integrity, Honesty, Trust: This has to be the most important of them all. You need to know that you can trust the broker you are doing business with. You have to know the broker is being totally honest and extremely authentic.
C)A good broker will let you know if he can assist in funding your project, however on the same token he should let you know if he cannot and the reasons why. Along with explaining why your project is not doable, he should be able to tell you what steps to take so that in the future you will be eligible for funding.
Non-Reputable Broker I will be as direct as I possibly can:
A)An Individual or Company that is extremely pushy: From the time you speak with them they immediately are asking for a retainer fee, in most cases a very large retainer fee. This person will continue to mention this fee through out the conversation.
B)One that will be very attentive to what you are asking for and agrees to all that you are saying, this I call over charming, not being truthfully and honest, not giving you the pros and cons and the full picture.
C)One that says he will send you an LOI (Letter of Intent) or an LOC (Letter of Commitment) and has not viewed any documents: i.e.; business plan, financials on the business, credit report etc.
There is no possible way a company or individual can determine if they are able to assist in funding your project without evaluating your total financial profile.
The bottom line is that you must do your due-diligence and research when it comes to choosing a broker, getting creditable references, inquiring about the projects they funded, along with meeting with that company or individual.
CONCLUSION
Obtaining funding for any business, whether it is an existing or a start up can be a grueling process. Recent studies show that most banks look at the consumer as just a number. If the loan package that you are submitting is not close to perfect, there is a good chance it will be declined and the funding source will not give you the real reason why your project was turned down. We continue to see banks and large companies getting bailed out, but what about the small companies? The bottom line is that the media will tell you exactly what they want you to know, NOT THE REAL STORY. The old saying goes: “We fear what we don’t know.” This is why educating yourself on the proper way to obtaining funding for your business is so important.
Barthelemy Commercial Capital (BCC) is a company that has over 25 years combined experience. However, we as a company continue to educate our staff on what’s going on in the market along with building relationships with other funding sources. What you have to keep in mind is that the programs in Commercial Real Estate Lending are always changing, the programs that were offered five years ago or even yesterday may not or does not exist, and this is why continued education is so important. Remember when an individual just had to have a pulse in order to be approved for a business loan? (Not literally, but you get what I am saying) In contrast, in these hard economic times, it’s like pulling teeth to even speak with some concerning funding for a business. Companies are telling you no before you even walk through the door! This is why having a professional to assist you in obtaining a loan for your business is so important. Take for example: When you are sick you go see a doctor, when you are having car problems you take your car to a mechanic, when you need someone to represent you in a legal battle you get an attorney. Now, I am not saying you will not be successful in obtaining funding for your business by yourself, however, why should you go through the trial and tribulation, the anguish and stress when you can have an expert do it for you?
BCC has a 98% success rate with all of our clients; some of the main reasons why BCC is so successful are: 1) We take the time to listen (not hear) our clients needs verses their wants 2) We are able to summarize all that the client has shared with us and sell that to our funding source. We have the skill and knowledge to show all the positive and outstanding qualities that our client possesses. (In other words we can tell your story 100 times better than you can) this is because we know exactly what the funding source wants to hear, THINK ABOUT IT! Also because of the relationships we have with that particular funding source, along with a solid reputation and track record of submitting excellent projects.
There is a funding program for every project, you just have to know where to find it! This is where Barthelemy Commercial Capital comes in. BCC does not have to take time to locate the source to fund your project; this is because we have taken the time to build relationships with these particular funding sources. How many times have you heard, ”I guarantee I can get your company approved for a loan!” and the individual or company that told you that ends up shopping your project (Taking it from one source to another) and 7 months later your project is still not funded? Our company is very familiar with the programs that our funding sources offer, we are constantly educating ourselves on what is allowed and what is not allowed.
BCC is not your conventional funding source. We don’t have banker hours, we have a much smaller staff and most of all we are straight shooters. There is no project that is too small or too large and there is no business that is too small or too large. We understand that each and every project is different and requires a different program. As I stated earlier, there is a program for every project! BCC is 100% committed to funding your project and if your project is not eligible for funding we will not only advise you on what needs to be done, but also assist you in getting it done so that you will obtain funding for that project. I want you to keep in mind that Barthelemy Commercial Capital has over 25 years combined experience in this industry. BCC will not , I repeat, will not sugar coat any situation. As they say: WE WILL GIVE YOU REAL TALK, so as I said at the beginning: “If we can help you we will tell you, and if we cant we will tell you that as well.
TIME IS SOMETHING THAT WE CANNOT GET BACK, SO BELIEVE ME, WE
WILL NOT WASTE YOURS!!!!!!!
TRUST INTEGRITY HONESTY
Projects We Fund, But Not Limited To:
Multi Units Apartments
Mix Used Facilities
Churches
Restaurants