Part 2 of 2

BOISE, ID—In part 1 of this two-part series, Alisha Hill, senior vice president of auction finance at A10 Capital, which specializes in non-recourse commercial mortgages, talked about how online auction platforms are fundamentally changing the way commercial real estate is acquired and sold, leveling the playing field for smaller investors. In part 2 of this Q&A, she talks about questions to keep in mind when evaluating a lender.

GlobeSt.com: What questions should an investor ask in evaluating a lender?

• Does the lender that understands the auction process? A lender that has a good relationship with the auction platform can be helpful in navigating the auction process, and can educate sponsors new to the process as to what pitfalls to look out for, and how to best develop a plan to manage the compressed due diligence timeframe.
• Does the lender have experience in closing transactions in less than 30 days? A great deal of experience in this space will ensure that introducing an auction finance component into the transaction will not complicate the process, but simplify it.
• Does the lender provide a future facility for tenant improvements and leasing commissions? A committed future “good news” facility can be an ideal capital source to execute a business plan.
• Does the lender have a strong back office and servicing component? If the lender will be outsourcing the legal and/or underwriting component, there may be additional time and fees to consider. Furthermore, if the loan is sold, you may be dealing with the headache of having to re-educate different servicers on your business plan throughout the life of the loan.
• Does the lender have a national footprint and is it licensed to lend in all 50 states? It is important that a lender has the ability

to navigate a transaction outside of the territory of the asset, both in understanding the laws specific to each state and in having national relationships with third party vendors that will enable an expedited turn of reports.