Commercial Real Estate Banking Tips

How Working with Expert Bankers Can Make a Difference

Doing business in the commercial real estate world is a complicated undertaking requiring top-notch experts. Not only are business owners responsible for knowing the complexities of the commercial building industry, but successful builders also have vast knowledge of the local community of each commercial project.

Arguably more important than vetting the best employees and contractors is carefully selecting a Northern Nevada bank to carry you through every stage of your business. Our team of industry experts has lived and worked in Northern Nevada for years, gaining local experience and insight that is hard to find with large, money center banks. Plus, First Independent Bank offers a wide range of products and services for your commercial real estate business from no-nonsense deposit accounts to international letters of credit.

Especially when it comes to commercial real estate and construction, finding the right banking resource can mean the difference between breaking ground on the project on time or getting wrapped up in red tape. Beyond the basics of banking, consider the following characteristics when selecting your financial services provider of choice:

1. Experience – Knowledge of your sector and the market is critical. In today’s competitive development climate, you want to make sure your bank delivers on established terms in a timely manner. In other words, getting you what you need when you need it. For a competitive edge, choose a fast-moving bank that can craft a deal right at the table (and will deliver on those promises).

2. Support/Network – You want your business to grow and expand; it only makes sense to collaborate with a bank that isn’t going to hold you back. If you decide to branch out into working in other states, or change from your usual niche to include property acquisition or new ground-up construction, a financing expert with an expansive background can help simplify the process. Look for a bank that encompasses the high-quality service of a local bank along with the connections, expertise and knowledge library – not to mention sizable capacity – of a large financial institution. 

3. Culture and Values – Finding a bank that shares your priorities is essential. It can make a significant difference when your banking organization knows what you find most important and embodies those qualities when delivering on services. High-quality, always-available customer service can make a huge difference.

4. Relationship Track Record –What do the bank’s clients have to say about them? Find out about the bank’s track record with long-term clients and investors in the commercial real estate and construction sector and what those clients have to say. 

5. Understanding – The right banker also will be an expert underwriter. The professionals you work with should have the ability to make decisions on the spot without needing to consult higher-ups. You can benefit from skilled bankers, who as underwriters, are empowered to tailor terms for approval. 

6. Cut Through the Red Tape – Once you have an established relationship with your banker, it should become easier for you to manage your banking needs. If you are treated like a new client or stranger every time you call, it can be a disadvantage when you need an expedited turnaround of loan structure and certainty of execution. This may be a setback with working with huge banks that don’t know their clients personally. Look for the rare bank with professionals who respond to your personal call, text or email. 

As part of selecting a knowledgeable business banking provider, you’ll want to assess their ongoing understanding of key economic factors that can impact your commercial real estate business. One of the most influential factors—employment—is gaining steam.  According to the Nevada Department of Employment, Training and Rehabilitation’s Research and Analysis Bureau, Nevada’s employment rate increased 3.5% from January 2016 to January 2017. Commercial real estate businesses can anticipate increased demand for their services as companies continue to expand their workforces. Job creation drives real estate development such as design-builds as well as the restoration or upgrade of older properties. Providing local economic insight is one way First Independent Bank serves businesses in the increasingly robust Northern Nevada market.

In the rough and tumble world of real estate development, you need the ability to focus on the project at hand and manage your business. It will significantly improve your efficiency when you can stop worrying about whether your financial transactions are being handled properly. Curious about other ways the right commercial real estate banker can help you? Contact First Independent Bank’s experts today.