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Creating Competition Among
Lenders in Your Commercial Real Estate Deal
A WomenforWealth.com Interview with Kelly Fabros
by Emily Cressey
Every ambitious investor eventually sets her sights on commercial real
estate. Offering far greater potential profits than single family home
investment, commercial real estate investment demands a higher price. A savvy approach to commercial real estate lenders can launch the new investor’s career.
We recently invited Kelly Fabros to share her experiences of breaking into profitable commercial real estate investing in a power-packed Tele-Seminar. As Kelly made the transition from LAPD Officer to super-successful commercial real estate investor, she stumbled upon nuggets not taught in books which helped super-size her results.
In Kelly’s first commercial real estate investment deal, she ended up with amazing terms through her lender. At the same time, she avoided alienating the other lenders, leaving bridges intact for future business. How did she do this? Here are her secrets, in her own words!
“When I first found the River Walk property I had called three different commercial real estate investment lenders. I called the local lender that was in the area. He knows that market. He knows the area and he’s just a small town bank. I called a national lender which was through a broker. I went through a broker who went through national lenders and we ended up closing with LaSalle Bank but they’re a national lender. I also went through a broker and I didn’t know this at the time but he gave me quotes from insurance companies. Those insurance companies were very competitive. They were actually more competitive than the two banks.
“How I accidentally created competition is the broker that was calling me is the broker I chose to work with on this commercial real estate deal. I thought, ‘Well this guy’s calling me he really wants my business,’ where I had to call the other guys. He didn’t have the best offer. I told him, ‘This insurance company’s offering me three years of interest only.’ Actually it wasn’t interest only at the time. I just told him what they offered me and the broker I wanted to use matched it. I went back to the insurance company and said, ‘Well thank you I’ve made my choice.’ They said, ‘No, no, no wait’ and that’s how I ended up starting this competition for financing my commercial real estate investment that I didn’t even know I could do.
I was back and forth between my insurance company and the brokers at least three times. I even asked them, ‘what is the draw on this commercial real estate investment?’ They just said it’s a lot of money right now in the market, there are not that many great deals and there are not that many good buyers. It blew me away that he thought I was a good buyer.”
Kelly highlights that, when it comes to commercial real estate investment, no one is born a “good buyer.” She transformed her own interest into results through action: seeking knowledge, putting in the legwork, associating with people who knew what she wanted to know, and putting her newfound education into action. With those pieces in place, the money to fund her commercial real estate investments came easily.
To understand even more about how Shannan was able to lock up these apartment buildings and then convert them to condo’s, listen to the full interview:
Condo Conversion A-Z: What I learned from my first Condo Conversion.
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