Receiving funding for your commercial real estate can be a difficult and time-consuming process. From small-scale investments to large-scale properties, finding the financing you need can be hard to come by. Thankfully, technology is changing the way lenders can provide services and borrowers can gain access to the financial solutions they need. Discover how these three technological changes are impacting the real estate market.
Automated Evaluation Software
Evaluating loans takes time. As lenders have to process every application, evaluate every loan portfolio and use costly personnel to determine whether a real estate loan should be approved or not, there are many ways the process can be streamlined. Thankfully, advances in technology allow automated valuation models to efficiently process and pre-approved potential deals. Sorting high-priority applications can help you receive the loan you need quickly.
Underwriting techniques, guidelines, and deals are as unique as the many individual institutions that offer them. As communication technologies increase, commercial real estate loans are continuing to sync and deliver more automated, unified underwriting models. Some companies are even starting to use AI to connect templates and quickly transmit information from one form to another. This will considerably speed up the process and help unify the entire industry. As a real estate investor, this means that you can have a much better idea of the rules and regulations of underwriting, as well as enjoy a quicker timeline for receiving the loan you need.
Automated Scanned Rent Roll Processing
Currently, a scanned rent roll is a huge inconvenience for the entire industry. While scanning rent rolls is a typical strategy, it often requires typing out the entire form in order to transfer the information to another database. Improvements in AI and machine learning have allowed commercial real estate lenders to simply scan a rent roll and then automatically receive a spreadsheet that can be altered and organized efficiently. This will save lenders plenty of time processing rent rolls.
Each of these changes may seem minor on their own. However, taken together, it’s big news for commercial real estate investors. Expect to receive faster loans and more approvals for smaller loans due to the improved efficiency and flexibility that technology provides. While some of these technological innovations are just starting to be used, they will quickly spread to many loan providers for maximum effect. Whether you’re looking for a single, small business loan or a series of large, long-term financial offerings to grow your business, expect to see these innovations soon.