Wednesday, 28 September 2016

Waad Nadhir - How to Build Relationships with Financial Institutions

Waad Nadhir has been in the real estate business for more than twenty-five years.

Once you prepare and outline your pitch for the banks, print multiple copies of it. Visit several banks and personally deliver your proposal. Doing so will show the bankers that there is a real person behind the potential deal. It will also help your proposal not end up in “to be read at some point later” pile. Also, let every bank you visit know that you are talking to multiple financial institutions.

Getting commercial real estate financing is an economic activity. Just like with every other economic activity the laws of economy apply, including the law of supply and demand. If banks are doing well and are looking to make deals, you can be bolder during your negotiations. If funds are scarce, you may need to accept a higher interest rate on the mortgage. Whatever happens, keep your eyes on the prize and think long-term. What will matter in ten, twenty and thirty years is that you bought the property you wanted.

Once you make your first few deals, the banks will start getting really interested in your offers and properties. They will be very interested to see the changes on your statements of assets and liabilities. Bankers will suddenly start making small talk about how you find your properties, what is going on with your current properties and so on.

You have probably heard the saying that “if you owe a bank $1,000, you have a problem, if you owe a bank $10,000,000, that’s the bank’s problem.”
If a bank gives you a lot of money and you pay it back, the bank will want to give you more money. They will start inviting you to business lunches and events. They are much more interested in giving a significant sum of money to someone they think will pay it off than deal with a lot of strangers off the street borrowing small amounts.

At a certain point, the banks will start trying to impress you. If you are just getting started or have a few properties, you will probably have to get financing on each property individually.

However, as your portfolio grows in size, you may reach a point where it is beneficial to you to consolidate your properties into one portfolio and obtain an umbrella mortgage. Umbrella mortgages are usually much more flexible compared to single-property mortgages. They typically allow investors to buy and add or sell and remove properties from the mortgage without it being affected.

Another advantage of umbrella mortgages is lower application and transaction fees. Finally, when you build a relationship with a financial institution, they would often finance your new projects after doing just a bit of rudimentary checking. This can be helpful because it significantly decreases the time between application and approval and allows you to make quicker and better deals. The ability to make such deals is what gives real estate professionals such as Waad Nadhir an additional advantage in the marketplace.

Monday, 5 September 2016

Waad Nadhir - A Short Guide to Developing Commercial Real Estate

Waad Nadhir is a commercial real estate developer who has been successful throughout his lengthy career in the field. He is currently serving as the President and Co-Founder of BOSC Realty Advisors, and he is also a consultant for a Steadfast Companies, which is property management and development company. Here is a short guide to success in commercial real estate development.

Understand that location is the most important factor in your decision to lease or own commercial real estate. You need to pick a place that you know will have a decent amount of foot traffic, that is in an up and coming community, and is surrounded by businesses that will be conducive to your purpose. The location can ruin a good business, and it can make an average business successful.

Don’t be afraid to hold off on developing a property until it become financially optimal to do so. This is a common practice amongst professionals in the industry because some land can be worth more when developed at a later time. This is especially true if you’ve invested in land in an area you know will be on the rise in the near future.

Commercial real estate needs to be continuously improved in order to be lucrative. Customer wants and needs change all the time, and you have to update your property in order to serve these changes in interest. All things change over time, and this includes the property you rent, control, or own.

Waad Nadhir understands what it takes to be successful as a developer of commercial real estate for his company, BOSC Realty Advisors.