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:
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.
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:
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 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:
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.
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.
Modern CRE software utilizes several key technologies:
These technologies work together to create an effortless preflight process that dramatically reduces the time required to evaluate commercial real estate deals.
The advantages of implementing automated preflight analysis include:
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.
Integrating automated preflight analysis into existing workflows requires a thoughtful approach. Keep in mind the following steps:
With the right implementation strategy, commercial lending software can transform the way your organization approaches CRE deals.
To maximize the benefits of automated preflight analysis, organizations should follow these best practices.
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.
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.
Not all mortgage lending software is created equal. When selecting a platform, consider:
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.
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:
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!