The CRE financing marketplace may be among the last industries to fully incorporate the latest technology into its practices. The joke among brokers and lenders is that their cell phone is still the most valuable tool they use as they search for deals and secure the best terms. While there is no substitute for good old-fashioned hard work, the reliance on technology that is essentially 150 years old does beg the question of whether the industry is ripe for change. One company that spotted the issue and decided to fix it is Finance Lobby. The company created an online platform that eliminates the need for commercial real estate brokers and lenders to make multiple phone calls in search of perfect deals. In doing so, Finance Lobby is disrupting the CRE marketplace through its introduction of more efficiency and the optimization of work days for professionals.
To avoid underestimating the importance of the innovation created by Finance Lobby, consider first what those who worked in commercial real estate financing typically encountered for years. Obtaining funding for a commercial property was similar to searching for financing for a home: endless phone calls between a broker and a CRE lender. Each had their own ideal terms they were seeking, yet in order to find them, they relied on asking for and sending multiple soft quotes each day.
“Another issue was that all sides were not able to see all of the deals that were actually available in real time,” says Finance Lobby. “When we analyzed the commercial real estate financing marketplace, we saw a lot of dedicated professionals who had the talent and skills to do their jobs well and who cared about serving their clients. However, they were hampered by an old-school way of conducting their business, so we decided to step in with our software and provide the answers so many people were searching for.”
“Through our platform, we are accomplishing one of our biggest goals: to introduce more precision into the lives of CRE lenders,” says Finance Lobby. “They are incredibly busy people, and what we heard time and again was that they spent too much time on the phone, trying to nail down terms that worked and create soft quotes that met the borrower’s needs. It was an inevitable part of the CRE financing process, but we believed we could make it a lot easier.”
Finance Lobby reveals that it has designed its software to include the ability for CRE lenders to set their preferences for terms before they even look for deals. “What this does is give them access to deals they want instead of them having to look at deals that are irrelevant,” the company says. “It also brings up every deal in the market, so the CRE lender does not have to worry that they are overlooking something important.”
It adds that the CRE lender can more easily make soft quotes that are accurate and fast. “We also help them to communicate directly with the broker. It truly is a more efficient way for the CRE lender to conduct business,” Finance Lobby states.
The situation faced by commercial real estate brokers was just as challenging. Even the most experienced faced multiple phone calls as they searched for loan terms that satisfied their clients. “Many CRE brokers have told us that even when they did get the terms, they weren’t really satisfactory for their clients, so it wasn’t the outcome that they were seeking,” Finance Lobby says.
For CRE brokers, the company built into its software key capabilities, including the ability to get thousands of eyes on every loan request, preferred access to the broker’s favorite lenders, and comparisons of multiple offers before selecting the one that is right for the broker’s client.
“Our software removes so many of the hurdles that have frustrated CRE brokers for years,” states Finance Lobby. “It is designed to simply make their workdays much easier for them and their clients.”
The industry is already seeing a shift from professionals relying on phone calls to secure terms and deals to instead using Finance Lobby’s CRE software. “We currently have over 4,000 lenders on our platform,” the company reveals. “That number continues to grow and surpasses our closest competitor, who has 400. It is evidence that by listening to CRE lenders and brokers, we were able to design the system that they had been waiting for.”
Finance Lobby states that it will continue to offer new innovations in the future. “We already have algorithms that match brokers and lenders, and we send alerts when deals arise that match the user’s criteria,” the company says. “We aim to keep offering time-saving inclusions like these so that the CRE marketplace becomes more efficient, less stressful, and even fun for everyone who works in it.”