Funding Tips from the Entrepreneur's Banker
If you’re interested in expanding your real estate investment portfolio, you might be considering the option of getting into commercial or multifamily real estate. This can be an excellent strategy for building wealth, but it’s not as straightforward as simply scaling up your current business - there’s a lot more you need to know about, including commercial funding.
Greg Martin is a Commercial Banker at BB&T Bank, now Truist. With over 14 years of banking experience he is an entrepreneur’s insider to the banking industry. Greg is the creator of The Entrepreneur’s Banker brand and is a certified Profit First Banker (1 of 2 in the world).
Greg and I discuss some of the differences between owning and managing commercial versus single-family real estate and what you need to know about funding. We also talk about some of the strategies you can use to secure funding and why it’s essential for you to have a great team in place as you make the jump into commercial real estate.
In this episode, we’re discussing…
How Greg helps entrepreneurs use banking to their greatest strategic advantage.
How to get involved with commercial real estate and what the bank will look for as you make that leap.
Why you should really get to know your bank and your banker.
Why entrepreneurship these days is a team sport and why you need a great banker, realtor, and lawyer on your team.
How having cashflow independent of your rental portfolio - like from a W2 job - can be used to your advantage.
A broad overview of how commercial loans work and what terms you can expect.
Greg’s Top Tips:
You must understand the risks that come along with owning and managing multifamily property – managing multifamily real estate is pretty different from managing a single family portfolio, so be prepared to assess risks like vacancy and your ability to pay back your loans.
Build a great relationship with your bank – that way you can get solid advice from your banker about what kind of investments they can help you make, what risk you might be taking on with a particular deal, and creative funding strategies you can explore.
Think about the length of time you want to own the investment property – this will help you quantify and assess the risk on the deal up front, lower the bank’s interest risk, and save money in the long run when you sell - a great banker can help you figure this out.
Resources:
Join us in the new Richer Geek Subreddit!
Leave me a voicemail with your thoughts on the show!
Greg Martin | The Entrepreneur’s Banker | LinkedIn
Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie Duke
Unsure where to start investing your money? Check out our free quiz for guidance and ideas about what to do with your money that’s smarter and can help you generate extra income now.
Like what you’re hearing on The Richer Geek? Have questions you want me to cover? Connect with me on LinkedIn and let me know – I’d love to hear from you!
ABOUT GREG MARTIN
Greg Martin is a Commercial Banker at BB&T Bank, now Truist. With over 14 years of banking experience he is an entrepreneur’s insider to the banking industry. He believes that every person is uniquely designed for a higher purpose and calling, and he strives to support that purpose and calling professionally and personally. Greg is the creator of The Entrepreneur’s Banker brand and is a certified Profit First Banker (1 of 2 in the world).
Before his career in banking, Greg was an officer in the United States Army, serving with the 82nd Airborne Division. He has been deployed 3 times and has been awarded the Bronze Star Medal and the US Army Ranger Tab. When not empowering or coaching entrepreneurs, Greg can be found on a date with his wife of 18 years or shooting hoops with his 11-year old son.
