Generating leads in commercial real estate is a matter of having access to relevant information that’s current, when you need it. While most brokers work on leads in an ongoing fashion, they can rarely take time to do extended research themselves in order to uncover potential deals.
Digital tools for data aggregation have been filling the need for ready access to all sorts of useful information, and one of the major players, Actovia, recently announced an expansion of services that has great potential for the commercial mortgage backed securities (CMBS) field.
Founded by Jonathan Ingber, who formerly served as Director of Research for a NYC-based commercial real estate brokerage, Actovia streamlines the intelligence-gathering process for real estate brokers and investors. Subscribers can identify the real owners behind LLCs, discover properties’ real loan rates and due dates, ascertain prepayment penalty information, and search the most active owners and zip codes to empower stronger prospecting and fuel deals.
Actovia’s newest tool is being made available as the CMBS market enters a “maturity wave,” which began last year and will continue through 2017, according to Ingber. This type of mortgage does not amortize fully over the term of the loan (usually 10 years), so the borrower is required to refinance at maturity to cover a balloon payment. It’s expected that loans that aren’t able to refinance at maturity will see losses. The large number of CMBS mortgages reaching maturity represents a lot of opportunity for brokers.
“With a ‘wall of maturities’ hanging on the market – over 21,000 mortgages worth more than $500 Billion over the next 18 months – this tool is invaluable to get in the game and keep the deals flowing,” said Ingber.
While other services do provide some information on these properties, they aren’t able to include the level of specificity that Actovia can. Brokers using the Actovia platform will have access to direct contact with owners, rather than the generic information other services provide, which usually just leads to an LLC rather than the actual decision-makers. Brokers can utilize this data as a tool for lead generation.
Potential opportunities can be identified by looking at details on a property’s mortgage rate and the date of the mortgage expiration. Knowing when a mortgage is about to expire means that contact is made at the right time, when the owner is more receptive and may be ready to move on a new deal. Accurate contact information on Actovia means that inquiries are addressed to the person who can make decisions, and costly delays can be avoided.
Having access to mortgage details makes it possible to structure offers in the most effective form before initial contact is even made. Deals are immediately attractive to the prospect, because they are tailored to the specific conditions of the property’s financing. Details include lender information, prepayment penalties, loan origin date, and more.
Actovia is based in New York City, and is gradually expanding its reach. The CMBS tool is designed to be useful at regional and national levels. The service includes information on loan amount per square foot and loan to value ratio – all of the information brokers need to strike a deal that serves both parties.
In the competitive CRE industry, time is of the essence. Ready access to critical details without the need to spend time researching gives brokers an edge and lets them focus their energy where it has the most potential for generating deals. Powerful digital tools have tremendous impact, gathering current and relevant information to keep the market moving forward.