Secrets to Success in Commercial Real Estate Lending with Chris Odom
How to Invest in Commercial Real Estate Podcast: Insights on Commercial Lending and Market Trends
In the latest episode of How to Invest in Commercial Real Estate, the Criterion team is joined by Chris Odom, Executive Vice President of Mabrey Bank, to explore the ever-changing world of commercial real estate lending. With interest rates fluctuating and the market shifting, this episode offers essential advice for both seasoned investors and those just starting out in the commercial real estate (CRE) space.
Key Highlights:
A Big Win with the Callaway Deal The episode begins on a high note as the team celebrates a significant success with the Callaway real estate deal, yielding over 40% Internal Rate of Return (IRR) in just eight months. This impressive outcome sets the tone for a discussion about navigating the CRE market in a time of opportunity.
Chris Odom’s Take on Commercial Lending in 2024 Chris Odom, a trusted figure at Mabrey Bank, sheds light on the state of commercial real estate lending. Despite the challenges posed by recent high interest rates, Chris explains how well-capitalized banks like Mabry are adapting and preparing for the coming months as rates begin to ease.
Debt Yield: A Key Metric for Evaluating Deals One of the episode’s key takeaways is the concept of debt yield, an important metric that helps banks evaluate the viability of a loan. Chris walks listeners through how banks use debt yield—calculated by dividing a property’s Net Operating Income (NOI) by the loan amount—to assess whether a deal can service its debt, regardless of interest rates.
Asset Classes in Commercial Real Estate Chris also touches on which asset classes are currently performing well. Multifamily remains a strong and reliable sector, with industrial properties close behind. Retail is holding steady, while office spaces, although more challenging, are still viable in certain markets.
Advice for First-Time CRE Borrowers For those new to commercial real estate investing, Chris provides invaluable advice on how to approach a lender. Key tips include preparing a personal financial statement, understanding the property’s rent roll, and building a strong team of professionals to support your investments. As the team discusses, even smaller deals can open doors to future opportunities when handled wisely.
Looking Ahead: A Positive Forecast for CRE Lending With interest rates projected to drop over the next 12 months, the team and Chris Odom see a bright future for commercial real estate. As construction projects pick up and banks continue to lend, now could be a prime time for investors to take advantage of favorable financing conditions.
Final Thoughts
This episode of How to Invest in Commercial Real Estate offers an in-depth look at commercial lending, with insights from a banking expert who’s seen it all. Whether you’re interested in securing your first CRE loan or navigating the changing market as a seasoned investor, Chris Odom’s advice can help guide you toward making smart, informed decisions.
If you’re ready to dive deeper into the world of commercial real estate, don’t miss this episode—packed with expert insights that can help you position yourself for success in 2024.
Watch now and gain the insights you need to thrive in the commercial real estate market!
