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Deal Talk Podcast - Give Episode 2 A Listen!
Episode 2 of our Deal Talk podcast featuring Terry Luker is now available! "Getting a Better Deal the Second Time Around" is a pivotal deal from Terry Luker's first book, "Yes! How to Get the Funding You Need For Your Business," and is brought into even greater detail here on our podcast! Give it a listen below and be sure to Follow our podcast on Spotify and YouTube!
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Funders to Watch: Commercial Capital BIDCO— Why Brokers Should Consider Adding Small Balance Bridge Projects to Their Toolbox
Thank you to DealMaker Magazine for featuring our latest article. Check out the published article on their site here!
Funders to Watch: Commercial Capital BIDCO— Why Brokers Should Consider Adding Small Balance Bridge Projects to Their Toolbox
Being a skilled broker today means having a toolkit that can stand the test of time and allow you to quickly pivot with the lending needs of your clients while maintaining the momentum of a deal in motion. Some of you may just be starting out in the commercial bridge lending industry with a toolkit that is a work in progress, while others may be seasoned bridge lenders looking to reevaluate the services and value you are providing to your clients. In either case, read on to learn how Commercial Capital BIDCO finds success with smaller balance bridge loans and how you can replicate these deals in your market.
Having a wide variety of quality tools in your commercial lending broker toolkit can not only save you time with securing the best loan product for your client, but it will also position you as a creative broker who can handle the majority of funding opportunities that may arise without the need to pull in additional brokers. Let’s pull out and sharpen one of the most handy tools in our kit here at Commercial Capital BIDCO: the small balance bridge loan.
While not the most common tool for all brokers, the small balance bridge loan is still an excellent resource to add to your toolkit, as it will forge a path for your client to get to the next phase, especially if the circumstances require a small “bridge” to be set in place.
At Commercial Capital BIDCO, our team specializes in loans from $250,000 to more than $2 million. We have closed larger bridge loans that are out of our typical scope; however, this range is our sweet spot. This range of funding is where we find ourselves being the most flexible as a direct bridge lender and the most creative for our clients.
With this specific tool added to your portfolio, you must ensure you are also taking the time to sharpen and polish your knowledge of this loan product. It will prove a solid solution for certain scenarios and give you an additional way to add value to your services.
What is Bridge Lending?
Bridge lending, or a bridge loan, is exactly what it sounds like. It is a loan that a client needs to bridge a gap they may have between other loans they are securing or have secured. Providing this type of loan will build trust with a client and give them one more reason to continue working with you in the future.
Now, let’s talk through where and how a small balance bridge loan will come into play with certain deals. When it comes to this specific loan product, there are several reasons for a client to need a bridge loan on a smaller scale. A few of these are:
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A fast closing of real estate or an investment property that a bank simply cannot close in time.
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The purchase of an unstabilized piece of investment real estate in a rural area in which the property needs a few months to stabilize.
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The purchase of real estate property that will be permanently financed in a government-backed loan. These loans simply take longer to close, and a client may need funding prior to that loan product closing.
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A distressed sale in which the seller wants to close quickly and the buyer is purchasing at a discount.
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When a client needs a small amount of funds to complete improvements to a land deal prior to the permanent construction loan being in place.
These types of scenarios may not meet the threshold or minimums of most bridge lenders who play in the large balance bridge loan space. That niche of lenders typically focuses on deals on larger properties with loan amounts that are more than $4 million in size. Diving into the smaller balance space will give you value and allow you to approach these deals with confidence. You will also be able to build the correct funding bridge needed by the client.
“At CCB, we pride ourselves in being a different type of bridge lender in that our preferred lending space is the $200,000 to more than $2 million loan size,” Jeff Luker, vice president of Commercial Capital at BIDCO, says. “This funding window not only allows us to provide a solid bridge loan product for our clients, but we are also able to quickly shift our gameplan within a deal and provide a creative solution to our clients when getting them to the finish line.”
Remember, bridge lending is just that: It’s a bridge to get your client to the next phase of their project. Whether that is a construction loan or a permanent financing loan, it is a path to that end result. This industry allows lenders of all sizes to play the game, and our advice to anyone looking for a new tool to add to their toolkit is to assess their services, or current tools, and the needs of their clients. Smaller balance bridge loans can be a truly valuable offering and one that you can find great success with when utilized in the correct scenarios. Educating yourself on how and when to use this tool will keep your portfolio, or toolkit, fresh and evolving.
ABOUT THE AUTHOR: Leah Waldrop is director of marketing for Alternative Capital Solutions and Commercial Capital BIDCO as well as The Commercial Broker Playbook. Waldrop has spent more than 10 years learning leading marketing strategies across numerous industries, including the music and entertainment industry, global supply chain processes and commercial lending. She believes her well-rounded experience enables her to create unique content and stay on the forefront of UX, graphic design and digital content trends.
The Right Strategy: Professional and personal development will help you find greater satisfaction
The Right Strategy: Professional and personal development will help you find greater satisfaction
By: Keely Pate, Alternative Capital Solutions: Director of Development
Published for The Scotsman Guide / July 2022
Commercial real estate professionals have diverse backgrounds and experiences. After the initial entry into the business — whether through an employer or a training program — lenders, brokers, credit officers and other industry professionals all navigate their own unique career, both professionally and personally.
Evaluate your strengths
Licenses and certifications
Networking opportunities
Skill expansion
Broker’s Playbook: New Year, New Game Plan — Why You Should Incorporate eLearning in 2022
Broker’s Playbook: New Year, New Game Plan — Why You Should Incorporate eLearning in 2022
Welcome to 2022! Raise your hand if you have a fresh list of goals written and your new book list created — ready to rock the year ahead. Just like the start of each new year before it, we make grand plans about our professional growth every year and set goals. We are certain 2022 is no different, however, and it will be easier than ever to revert back to familiar tactics when day-to-day life picks back up as the holiday fog subsides. One thing 2020 taught us was that you can either adapt to your goals and how to achieve them, or you can abandon ship. We would like to help you avoid the latter.
Thinking back on the past year, was continued learning or professional development a part of your list to conquer for the year? Was it something you streamlined into your daily to-do list or dedicated time to each week or month? The truth is, we don’t always achieve our goals or prioritize continued learning and professional development.
We’ve all been there. And we may be asking ourselves questions such as, “What book do I read now?” or “Which conference do I want to attend this year?” These are excellent paths to pursue and questions to ask no matter the time of year, but, when building a true strategy for obtaining your goals, you must ensure you’re adding the right content, with the accessibility and flexibility that fits your needs. A strong e-learning strategy allows you to access the information you need wherever you are and at your own pace.
Investing time and resources into industry education and continued learning will not only strengthen your foundation as a broker or lender, but will also enable you to reach success more easily — especially when the continued education you are incorporating is e-learning-based or tech-driven. According to data from the Research Institute of America, e-learning can boost the retention of content by 25% to 60% compared to 8% to 10% in traditional training and learning settings.1 Not only will you retain information more easily due to learning at your own pace, but you also have the opportunity to complete the training or education curriculum more quickly — saving time and money in the long-run over an in-person education curriculum.
The number of individuals continuing their education and increasing their industry knowledge — specifically via e-learning programs — continues to climb and 2022 is proving to be no different. Online education across an array of industries is being viewed as a primary way for professionals to build on their foundation of knowledge while also working to propel their industry forward. E-learning is giving individuals the ability to up their game in and out of the “e-classroom” and it’s proving successful for individuals and teams alike.
Planting the Seeds of 2022
So, what does this information mean to you as a commercial loan broker who is proactively planting the seeds of knowledge and seeking fruitful outcomes in 2022?
Several platforms, tools and programs are available to those seeking new skills or looking to brush up on their arsenal of current knowledge. Taking the time to decipher which programs will best serve your time and finances to produce the end results you’re looking to achieve will allow you to select the e-learning path that suits you best.
The teams at Alternative Capital Solutions and Commercial Capital BIDCO have just launched an e-learning tool, The Commercial Broker Playbook, to assist commercial loan brokers by providing in-depth knowledge of the industry, a look into the different types of commercial lending as well as how to take the reins when it comes to marketing their businesses.
Terry Luker, founder and CEO of Alternative Capital Solutions as well as Commercial Capital BIDCO, has long desired to build a platform for commercial lending brokers to tap into so they may glean the knowledge required to face what he encountered when he found his footing in the industry.
Luker has been a mentor to broker peers around the country for years — especially those who come from his broker training school alma mater — The Commercial Capital Training Group (CCTG). He knew building an online learning tool would be more sustainable and feasible while allowing brokers to work at their own pace and not be bound to limited meeting times or traveling restraints for in-person meetings. Thus, The Commercial Broker Playbook was born.
It can be difficult for some individuals to retain their focus with internet-based learning. However, unlike other e-learning platforms and programs, The Commercial Broker Playbook consists of an industry-leading team ready to assist you with comprehending the content, enabling you to stay focused and engaged while helping you to reach your professional development goals.
The Commercial Broker Playbook curriculum is robust, consisting of 10 different lessons, or modules, with content including:
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Networking
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Bridge loans
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Government-backed lending
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Underwriting
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Sales skill development training
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Marketing strategy
Self-paced learning offers 24/7 content access for users to utilize at their own pace. Packages range in pricing based on content level and duration of online access. Live virtual learning enhances a broker’s experience by way of exclusive monthly group webinars, live Q&A opportunities with content experts and one-on-one virtual office hours with the Commercial Broker Playbook team.
The Commercial Broker Playbook team welcomes commercial lending brokers who have attended a broker training school, such as CCTG, and have a current foundation of knowledge about the industry they can build upon. Whether you have minimal experience in this industry or you’re looking to build on your knowledge and work with a leader in the commercial loan industry, The Commercial Broker Playbook is an excellent fit for you in 2022. Visit thecommercialbrokerplaybook.com to learn more.
Don’t let 2022 be another year of abandoned goals and missed opportunities. Work with The Commercial Broker Playbook on a game plan that will drive your success!
1 Pezold, Stacey, “LMS 101: Rethinking Your Approach to Employee Training,” Forbes, Feb. 14, 2017.
Be sure to check out this published article on DealMaker Magazine's website by clicking here!
Why Invest in Commercial Properties in 2022
Commercial Real Estate has shown significant growth in 2021 over what will forever be known as a year of uncertainty in 2020. What was once considered a shuttering market just over a year ago, multi-family residential is full steam ahead while industrial and office space properties are also ticking upwards. With so many changes over the last 18 months, you may be asking yourself, “Why invest in a commercial property?” Our question for you is, “WHY NOT?”
According to the "May 2021 RCA CPPI: U.S." summary report, U.S. commercial real estate prices rose at a 1.3% annual rate from April 2020 to 2021. Driving that increase were apartments (up 7.6% year over year) and industrial properties (up 9.4%), the retail sector (up 1.3%), and office buildings (up 3%). – Millionacres.com
Commercial and Office Spaces:
From the rise of unique office spaces, the opening of satellite offices in suburbia as well as the reopening of corporate headquarters, offices are seeing a resurgence and where they’re popping up is a surprise to many.
With many companies now embracing a strong sense of employee culture that includes comfortable yet trendy surroundings, loft offices are some of the more popular choices across several industries – turning what were once retail-only spaces into multi-use spaces. Now these property types are an appealing investment choice for many who are looking for a diverse portfolio with more limited means.
Suburban office space and smaller square feet options for satellite offices are also excellent investment opportunities for those looking to invest in a property outside of a metro locale. This also allows the property owner to work with an experienced tenant who has other offices established in other locations. These general use spaces are also easily flipped allowing a new tenant to take over quickly and easily.
While not increasing as quickly or as steadily as residential, office space will continue to tick upward as employers finalize their reopening plans and prepare for most employees to transition back into offices full time over the next year.
Retail Brick-and-Mortar:
Retail will continue to evolve and find its pace over the next 12 months. One of the most hard-hit markets due to the pandemic, retail owners saw a surge in online sales, however, an increase in sales also occurred via curbside orders. This particular piece to the sales pie increased alongside a retail company’s increase in direct social media posts – allowing buyers to “shop a store’s social media,” purchase their products locally while also being able to receive their products same-day.
With this, we will see locally owned retail opting to keep their brick-and-mortar store fronts, but possibly look to increase their product storage and reconfigure their backstock needs as curbside orders continue and online orders increase.
“Same Day Pick-Up!” “Curbside!” These are phrases that have been promoted to buyers since the start of the pandemic – even across larger brands and corporations – allowing buyers to enjoy a slightly altered shopping experience while also receiving goods same-day as opposed to shipping and possible delays.
Strip malls and larger retail developments have also adjusted their selling strategy by implementing these additional forms for buyers to receive their purchases – not just locally owned mom and pop stores. While not an ideal situation in an uncertain world, these adjustments helped to keep the doors open for retail – small and large – assuring investors that these particular sectors of commercial real estate were still very active and growing.
Multi-Family Residential:
The start of the pandemic saw college students, new graduates, young families and more moving back home with their parents or to other shared living situations with friends and family. The uncertainty of the economy produced a boom of residential real estate listings, however with states now opening back up, markets are seeing a resurgence of individuals and families needing temporary and/or more budget-savvy living options such as apartment and condo rentals. Multi-family commercial real estate has witnessed the greatest increase of growth and will continue to do so as more states, universities and places of employment begin to open back up to pre-pandemic standards.
What to Do Now
Always weigh the pros and cons to any investment situation as well as play out each scenario – especially if you are a first time commercial real estate investor – however, striking while the iron is hot will be key to maximizing your investment and cash flow early on. With unique opportunities on the rise across all branches of commercial real estate, investors will be able to build a path that suits their goals. Lending experts – such as our team at Commercial Capital BIDCO – can assist you with the funding you need that the banks simply cannot do. We are proud of our in-house credit team as well as our in-house credit committee that both allow us to process loans quickly and easily. What are you waiting for? We’re ready to talk investment goals when you are!
NACLB 2021: The Industry is Back!
NACLB 2021: The Industry is Back!
We rolled the dice on attending NACLB 2021 this year in Las Vegas and came out on top with a refreshed view of the industry and what we’re looking forward to in 2022! NACLB – the National Alliance of Commercial Loan Brokers – is one of the most revered organizations in the industry and their annual conference is always a gold mine of information and networking for seasoned and rookie brokers alike as well as banks and lenders.
After canceling the 2020 conference and going virtual like most all in-person events that year, it was a breath of fresh air to be back with like-minded brokers and peers again. While the time at our booth is always considered the most beneficial while at conference, we did enjoy the breakout sessions and the wide array of content each of those provided. The breakout sessions took on a new spin for this year with less “presentations” and more round-table style panel discussions across different topics. Topics spanned anywhere from Networking 101 to The Art of Closing the Deal (both sessions led by our very own Terry Luker) to Equipment Financing and Finding Your Niche.
We have always been firm believers in that Commercial Capital BIDCO is a unique lender as we are one of the few licensed bridge lenders that lend in the small balance space - $250k to $2MM. We’re also very fast and flexible – funding a fully underwritten loan in as little as 5 days. With our own in-house credit team and credit committee, we are able to offer our clients an experience that is far from cookie cutter…and we most certainly felt that this has held true at this year’s conference with our launch of The Commercial Broker Playbook – an eLearning platform for brokers of all experience levels. Keeping commercial lending brokers ahead of the game is where we want to be in 2022.
Looking back on 2021 and forward into 2022, we know one thing is for sure and that is that we are proud to be a part of industry that knows no bounds and doesn’t give up. We enjoyed hearing stories of perseverance and growth from other brokers across the country while at conference and cannot wait to see the creative thinking that will drive not only our team here at Commercial Capital BIDCO but with other brokers and lenders throughout the United States.
Thank you to NACLB for bringing the conference back in 2021! We cannot wait to be back at Caesar’s Palace in 2022.
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Want to learn more about our new e-learning platform The Commercial Broker Playbook and how it can up your game plan? Visit TheCommercialBrokerPlaybook.com today.