However, doors and locks on fences can cost more to set up and install. This is especially the case if you plan on getting something that can only be handled with a key or an electronic code system.
The local area will have its people that are regarded as targets for this property type. Always get out into the area and talk personally to business owners and property investors.
Give, give, give. You must give your investors information first, then they will understand your business plan. Investors do not invest blind. Create a lead collection system on your web site. Use an auto responder to send these leads a welcome message and a series of ‘get to know you’ messages in the days following. Treat these leads like the gold that they are while you continue to develop a long term relationship with your list of investors. Teach them what you know about acquiring commercial property. Send them useful information, and they in turn, will invest if your plan meets their investment criteria. Know that this is a win-win relationship.
Finally, include the Property Management documents. This is one of the most important parts of the package. The lender will definitely want to know who will be managing the property and their experience level of the property management.
On paper, this looks like they’ve been an excellent property manager with a profitable property. And you won’t know any different until you get into your own Due Diligence.
This tightening has its biggest impact on businesses that are highly leveraged and or very tight on cash flow. Borrowers facing a ballooning loan that a borderline, will have difficult time coming up with options.
I go back to the point that relationships in our industry are really important. It can take months or even years with some prospects to get to the point of doing business with you. The ‘cycle’ of commercial real estate is quite long in both sales and leasing.