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Commercial Real Estate
Financing Tips for the New Investor
Based on a WomenforWealth.com Interview with Ann Ethridge-Painter
by Kirsten Lee
Commercial real estate investment is a whole new world to single family
home investors. Taking the first step into the commercial real estate world
may seem mysterious and even frightening to the new investor. The
WomenforWealth.com community joined Ann Ethridge-Painter, Vice-President of
the Apartment Loan Store, for a power-packed Tele-Seminar. Ann graciously
shared pearls of wisdom gathered from years of helping investors move into
the commercial real estate market. Her insider advice shines light on the
process and clears up many myths and misconceptions.
“Commercial is a whole different ballgame,” Ann agrees. “When you’re
going after that residential loan, they’re going to look at you, the
borrower or the investor. They’re going to look at your credit and rate you.
When you go into that commercial real estate world you’re playing by a new
set of rules. They’re looking at the property itself and rating it.
We’re gathering a story here, the history of the building; how it is run and
so forth. That’s a big difference.”
Ann stresses the importance of building a strong team to win in
commercial real estate. Regardless of the investor’s experience level she
should consider her broker and her agent as vital partners in her investment
victory. They can advise and give tips from their experience and
knowledge that the investor will not get anywhere else.
Ann explained that the first step to your commercial real estate success
is to “go to your broker and start asking questions. See how much they’re
going to participate with you and help you along the way.” Ann herself is
very hands on. She asks questions and paints a complete picture of her
client’s investment experience. If her client is new to the world of
commercial real estate investing, Ann will train and coach her through the
process. “I’m going to go into partnership with them because I want them to
have that success. Then we both win,” she says.
Much of the legwork in putting together a commercial real estate loan
targets fact-finding. Because lenders look at the property more than the
individual buying it, they demand a lengthy list of records and information.
A good broker is familiar with not only the requirements, but also ways to
read between the lines to paint the true picture. For example, from
experience a lender might see holes in the rent rolls that even an
experienced commercial investor can miss.
A commercial real state broker provides an invaluable second set of eyes.
She can see through the emotional attachment that borrowers sometimes feel
for a deal. She can navigate a clear path through the complicated process.
Therefore, a commercial finance broker can be priceless. And worth
searching for.
Commercial real estate investment is extraordinarily rewarding and
financially lucrative. Take the time to find a knowledgeable, proactive
broker. She will be a valuable team player, coach and key to your investment
success.
Want to learn more about the difference between
residential lending and commercial lending practices? Or how to find a
broker to work with? Check out our interview with Ann Ethridge-Painter
on CD and MP3: How to Build Wealth with the
Bank's Money to learn more.
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