10 Unique Keys to Financing Success in 2025

10 Unique Keys to Financing Success in 2025

The year 2024 was challenging for the commercial real estate industry-a year of frozen moments. Progress felt slow, every step like trudging through mud, with little momentum.  Our goal in this article is to provide unique keys to having financing success in 2025.  

1. Utilize Team Problem Solving

There is power in numbers. Gathering a trusted group to tackle a problem often leads to tremendous breakthroughs. This requires courage and vulnerability to address weaknesses. Remember, power is perfected in weakness. Channel your frustration into focused energy to find solutions. The way to do this is to grab 3 to 5 people, a whiteboard, and come in with a very clear goal. The goal should be S.M.A.R.T. (Specific, Measurable, Attainable, Realistic, and Timebound) and keep it simple. Block 2 hours of time and do a great job of preparing questions to keep it moving. My guess is that you will be blown away at the results that come out of collective minds working together and it could be a key to your financing success in 2025.

2. Be a “Who” Hunter

One of the problems you might have right now to get better financing might be a missing person. Often, progress stalls due to limited capacity. Conduct an audit to identify what’s blocking your path to financing.  There is a very high probability that you don’t have the person, or team you need to see success. Is this a person who is spending all their time making calls, doing underwriting, vetting institutions, or negotiating? You may want to entertain a commercial debt advisory firm. 

3. Leverage Others Relationships

It’s amazing how often we overlook that we might be just one or two connections away from the financing we need. Don’t underestimate the power of your network and the relationships you have. Take time to sit down and make a list of your circle of influence. Think about your vendors, bankers, friends, colleagues, associations, neighbors, people on LinkedIn, etc. Making this list and asking them specifically what you're looking for, could be the financing breakthrough you needed. Your job is to get very specific on what you are looking for, so they will know how to best help you.  

4. Think Non-Linear 

Think about how habitual we are. Every day we are very prone to do the same thing over and over.  The same routine, habits, and ways we think. If you want to see a change, then you need to make a change.  One of the ways you can do this is by getting really good at asking different questions.  When you or someone else asks a question, your brain automatically searches for answers. Use this to your advantage to reframe challenges creatively.  Take time today to write down questions like “How can I look at this differently than I am right now?” or “What is right in front of me that I am not seeing right now that, with a small change, could make a big difference”? 

5. Change Gears (Look at Bigger or Smaller)

Driving requires changing gears based on speed or terrain.  Similarly, your approach to financing might need a shift.  Take the same approach and change gears. You might need to take some time to think bigger than you are right now. Maybe your approach to getting financing is too small and a bigger vision might be warranted. Do you need to change gears and go for something larger than you are right now? Perhaps you need to take the other approach and lower the gear and do something smaller.  Maybe you need to go after smaller deals to get things moving along. Either way, think about the solution as just changing gears.  

6. Build a Board of Advisors 

Getting a regular board of directors or advisors is packed full of wisdom. This group should be carefully selected to bring skills to the table you need and make sure they care about you and your success. You need to have both great wisdom to help you see differently, but also they need to be people who care about you. Develop a clear plan and an advisory board overview. This document should outline operations and set expectations for success.   

7. Do the Opposite of Your Instinct 

If you have ever watched Seinfeld, there was an episode where George decided to do the “opposite” of every instinct. It was funny, but honestly, there is something to this. Challenge your instincts by taking time to validate or rethink your assumptions. There is so much power to have someone poke holes in your own thinking and try to get out of your own way.  Remember, we all have blind spots, and the people who get ahead will humble themselves to be wrong. 

8. Hand Over Your Deposits

We are in an unprecedented time where banks are desperate for deposits. Your deposits could be a golden opportunity. Banks are eager for deposits and may offer financing incentives. We have seen groups who were able to leverage their deposits to get tremendous financing. Many banks will stretch in areas you might not have imagined. You might be able to leverage components of the deposits to get the cash you need via a line of credit. Feel free to connect with us on this, as we have had success with it. 

9. Time to Partner

Sometimes, the key to faster, better financing is finding the right partner. A new fresh partner can bring in capital that could help obtain financing. You may be hesitant to get a partner because of past experiences, but there are different ways to structure these partnerships. There are tons of ways that attorneys can structure this so you don’t lose control. Also, partners can bring in a balance sheet that you don’t possess and it would open the door for the financing you need. 

10. Let It Go

Finally, sometimes you just need to let it go. If you’re reading this, I know you’re highly motivated and strong. That is amazing, but it can also be a curse in that you won’t walk away.  Believe me when I say “I get this”, but over the years I have learned that there is a time to lay it down. Your financing breakthrough might be to finally have permission from me or someone to say bye-bye.  One thing is for certain, is that it's never as bad as you think in your mind. We have a funny way of deceiving ourselves of things that are not true.  Let it go today and watch a new chapter unfold.  

For guidance on any of these strategies, feel free to contact me, David Kotter at dave.kotter@integrity-capital.com or 602.367.8795.