Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
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3. Creativity Counts T e lender should have a proven track record ord f forr ccre ssues. Te re- atively solving borrower and transaction issues. T e with both lender should be able to off er loan programs with both numb 5 fi xed- and adjustable-rate loans as well as a number ober of more creative fi xed/fl oat combinations and in ter st-on y executions. Early rate lock, small loans, and lo loans w fl exible refi nance and supplemental terms should also b available. In addition, a lender should have solid expe ri-i- ence with specialty loan products including: • structured transactions such as pools, credit facilities and bulk delivery; es,, • forward commitments for permanent fi nancing on both market rate and aff ordable housing properties; and on • aff ordable housing fi nance in the form of tax credit fi nanc- ing for multifamily aff ordable housing properties, includ- ing those that participate in the Low Income Housing Tax Credit program or are encumbered by a Housing Assistance Payment contract. T e lender also should be able to facilitate credit enhance- ment for fi xed- or variable-rate tax-exempt housing bonds, a creative way to provide fi nancing for new construction, refi - nance, acquisitions, or substantial rehabilitation of aff ordable housing properties. Finally, the lender should have a strong track record in capital markets. T is means the lender should be able to help clients develop and implement optimal capital structures for their real estate holdings using debt and equity across a range of asset classes. tereestt-onlly s w th wiith bee 5.. Work With W en al Whhen alll i is said and done, perhaps the m the most important factor is the len er's ork With Deal Closers i mp lender's ability to understand the assignment ketplace, this aspect is oſt en over- looked. Some loans as quic them th m, speed d speed is criticica up t at t e len that either della loan appl needs. In today's overheated mar- ke lace, oke em, s spe s c me lenders try to service ickly as possible. For d defi nes service. While al, if a surprise comes up that the lendder failed to anticipate th applica Mor ays or even derails the attiion, any semblance of good service ie is out the window. More than neeeds. Armed er i is bettter n anything else, today's borro borrow s newers need lenders who excel at listening to and understanding their n ed with this insight, the le lender s e er able to solve borrower and transactiio fi nd a w y to g on issues creatively and d a way to get the deal done. Howard W. Sm Howard W. Smith is executive vice ident, c ie walkerdunlop.com. president, chief operating offi cer, and boa d membe board member of Walker & Dunlop, in New York. Contact him at hsmith@ wa 4. Look for Speed + Execution In commercial real estate lending, execution is a function of process, and each step must be executed properly to mo assignment and the borrower's . In to speed at which the process moves is becoming a more critical factor in the transaction timeline. ic l f tor in t at which the lender is able to gather the preliminary informattioion. Sppeed is also essential during the underwriting stage to ensure that third-party reports are obtained on a timely basis and the mortgage credit items are collected. At closing, when the lender deals directly with the borrower, execution takes For instance, in the loan application stage, success largely hinges on t ma hinges on the speed n. Sp re on greater importance. It is critically important that this culminating experience with the borrower be a positive one. T erefore, proper communication between attorneys, swiſt resolution of any outstanding issues, and effi cient preparation of documents required for closing are the keys to ensuring a thorough and satisfying closing. o move on to the next. However, the om ng a more c CCIM.com May | June | 2012 41