You believe you’ve done everything right. You have a cash-flowing asset in a desirable market, good operating history, a good sponsor. You’re on top of property improvements, tenancy is optimal, and you began your search for financing well before your mortgage matures. Somehow, you still haven’t found the right lender.   What could you be doing wrong?

1. You’re holding back. For over 20 years, Aries Capital has secured financing for all commercial property types for clients seeking loans from under $5 million to over $100 million, and we often encounter property owners with great properties who don’t understand why lenders need the documentation they ask for, so they drag their feet. The sooner you produce the required documentation, the sooner a lender can get an accurate assessment of your deal and get you a quote.

2.Everyone has been there, seen that. You think getting your deal in front of as many lenders as possible is a great idea, giving you the best shot at competitive pricing. If they get wind of how many others are looking at your deal, however, some may decide your deal is “over-shopped” and pass. Start your search by finding an advocate with a proven track record and solid capital connections. Your advocate will help you package your deal to its best advantage, and get it in front of the right lenders.

3. You’re overleveraged. Post-economic meltdown, this has become too common: good cash flow, well managed property, a decline in property value that’s no fault of the owner. It’s unfortunate, but unavoidable. Sometimes you have to adjust your expectations and your approach, whether that’s contributing more equity or devising a more creative capital structure.

4. You’re blinkered by past experience.  You got a bank loan before and you’re only approaching banks now. Bank lending restrictions have tightened considerably in the last five years. If you have a good deal, someone will get it done for you. Consider alternative capital sources like CMBS, credit unions, or life companies, which may offer very competitive rates and loan terms.

5.You hired the wrong advocate. We’ve encountered this one too many times: a perfectly good deal being shopped by a broker who can’t tell his FHA from his Fannie Mae. If you’re going to hire an intermediary, check track record and references. A deal’s success is often determined by who you (or your adviser) knows, so be sure you have someone with strong relationships on your side.