Accelerate CRE Deals: How Automated Preflight Analysis Cuts Closing Time

In the third quarter of 2024, commercial and multifamily mortgage loan originations surged by 59% compared to the same period in the previous year, according to the Mortgage Bankers Association. This significant increase underscores the growing demand for efficient loan processing.

In an industry where speed often determines who wins the best deals, this traditional approach is costing lenders, brokers, and investors millions in missed opportunities and delayed returns.

Commercial real estate (CRE) deals have long been plagued by inefficient processes that slow down transactions and create bottlenecks in the market. These inefficiencies not only frustrate professionals but also impact the bottom line of every company involved in these transactions.

The pain points in traditional CRE deals are numerous: 

• Time-consuming manual document reviews that can take weeks
• Inconsistent data collection leading to poor valuation assessments
• Heightened risk of overlooking critical information
• Delays that ultimately cost money and cause deals to fall through

In this article, we'll review how automated preflight analysis is transforming the CRE industry, allowing professionals to close deals faster while making more informed decisions based on comprehensive, accurate data. 

Furthermore, we'll explore how platforms like Blooma are revolutionizing the way commercial real estate deals move from initial review to closing.

Understanding Preflight Analysis in CRE

Preflight analysis is the initial comprehensive review of a loan package to determine its viability before significant resources are invested. 

This critical step helps lenders and investors assess whether a deal makes sense to pursue further.

For those managing CRE portfolios, preflight analysis involves several key components:

• Borrower financials: Reviewing credit history, income statements, and financial stability
• Property valuation: Assessing the current and potential value of properties
• Market analysis: Evaluating factors like population growth, rents, and local development trends
• Legal documentation: Examining title documents, leasing agreements, and regulatory compliance
• Environmental reports: Reviewing potential environmental risks and liabilities

Thorough preflight analysis is essential for risk mitigation in commercial real estate deals. 

Lenders who implement rigorous preflight protocols experience fewer defaults and create stronger relationships with borrowers by setting clear expectations from the very beginning.

The Challenges of Manual Preflight Analysis

The traditional CRE pre-flight analysis is full of inefficiencies that slow down the process and increase the risk of errors. In real estate, time is money, and these problems can be the difference between winning or losing the best CRE deals.

Manual pre-flight processes face these issues:

• Data entry errors: Human error in entering and transcribing info from multiple docs
• Inconsistent standards: Different team members focus on different parts of the deal, so analysis is uneven
• Resource bottlenecks: Skilled professionals spend hours on mundane tasks instead of applying their knowledge to evaluating deals
• Information silos: Hard to access and share critical data across departments or teams

These problems add up to deal time and costs. 

For brokers and developers in competitive markets, these delays can mean winning or losing a prime property. For lenders, it means lower service quality and fewer deals per quarter.

Automating Preflight Analysis for Faster CRE Deals

Automation is changing the way CRE professionals approach preflight analysis, allowing them to access and analyze critical information in a fraction of the time required by manual methods. 

Commercial real estate software powered by artificial intelligence is changing the game for everyone involved in these transactions.

How Automation Works in CRE Preflight Analysis

Modern CRE software utilizes several key technologies:

• AI-powered data extraction: Automatically pulls relevant information from documents, reducing manual data entry
• Automated document review: Flags inconsistencies and potential issues in loan documentation
• Integrated risk scoring: Provides standardized risk assessments based on multiple factors
• Real-time market data integration: Connects property information with current market trends and emerging trends

These technologies work together to create an effortless preflight process that dramatically reduces the time required to evaluate commercial real estate deals.

Benefits of Automated Preflight Analysis

The advantages of implementing automated preflight analysis include:

• Reduced processing time: Preflight analysis that once took weeks can now be completed in days or even hours
• Improved accuracy: Eliminates human error in data entry and calculation
• Enhanced risk assessment: More comprehensive evaluation of investment criteria and risk factors
• Consistent standards: Ensures every deal is evaluated using the same rigorous process
• Better resource allocation: Frees up professionals to focus on the art of deal-making rather than data processing

For brokers, investors, and lenders in the CRE world, these benefits translate directly to business success. 

The ability to quickly analyze and close deals means more transactions, increased revenue, and better returns on time invested.

Implementing Automation in CRE Workflows

Integrating automated preflight analysis into existing workflows requires a thoughtful approach. Keep in mind the following steps: 

• Identify key bottlenecks in your current process
• Select the right platform that integrates with your existing systems
• Train your team on the new tools and processes
• Start with pilot projects before full implementation
• Continuously refine your approach based on results

With the right implementation strategy, commercial lending software can transform the way your organization approaches CRE deals.

Best Practices for Implementing Automated Preflight

To maximize the benefits of automated preflight analysis, organizations should follow these best practices.

Data Quality and Standardization

Any system is only as good as the data it processes. Set standards for data formatting and make sure everyone on your team adheres to those standards. Clean, standardized data is key to accurate analysis and results.

Change Management

Transitioning from manual to automated processes requires effective change management. Invest in training for your team and communicate the benefits of the new system. That builds confidence and gets adoption across the company.

Selecting the Right Technology Partner

Not all mortgage lending software is created equal. When selecting a platform, consider:

• Integration with your existing systems
• Customization for your specific business needs
• Support and training resources
• Track record in the CRE industry
• Continuous updates and improvements

Continuous Monitoring and Improvement

Automation is not a "set it and forget it" solution.  Regular reviews of the system and ongoing refinements are necessary to keep the automated preflight process effective. That way your platform stays current with the market.

Blooma's Powerful Solutions Streamline CRE Deals

Automated preflight analysis is what CRE professionals today need to stay ahead in the increasingly fast-paced market. 

Being able to analyze deals quickly, access all the data, and make informed decisions gives you a significant advantage in securing the best opportunities.

Blooma’s platform addresses the challenges faced by CRE lenders and investors:

• Automated data extraction pulls info from multiple sources; no more manual data entry
• Streamlined document review flags issues before they become problems
• Advanced risk assessment gives you a total view of each deal
• Real-time portfolio monitoring keeps you up to date on your investments

By using Blooma’s solutions, lenders can reduce the time it takes to do preflight analysis and respond faster to opportunities, and close deals faster. That’s a competitive advantage in a market where speed and accuracy matter.

For owners, sellers, and investors in commercial real estate, working with lenders who use Blooma’s platform means faster approvals, more transparency, and, ultimately, more successful transactions.

Get started today and see how Blooma can help you close deals faster and better to increase your wealth. With the right platform and process, you can win in commercial real estate; speed and data will become your superpowers.

Get a Bloomo demo today!