Navigating Commercial Real Estate Debt W/ George Otel
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Episode Description
Welcome to the Freedom Point Podcast! In this episode, George Otel joins Jeremy to unpack the challenges and opportunities in today’s commercial real estate financing landscape. With experience in short sales, equipment financing, SBA loans, and commercial real estate lending, George explains how interest rate spikes have reshaped debt structures and why small business owners and investors need creative financing solutions more than ever. He shares insights on SBA loans, bridge loans, and refinancing strategies that help owners secure properties even in distressed markets. George also highlights the common mistakes borrowers make, why timing is critical, and how proactive preparation can turn financing hurdles into long-term wealth. If you want to better understand debt, distress, and opportunity in commercial real estate, this conversation is packed with clarity and strategy.
Summary
Tip #1: Understand the Current Lending Environment
“Lenders are staying conservative, changing criteria, and many borrowers are struggling to secure financing.”
George explains that while traditional banks are tightening up, private and specialized lenders with deep experience and available capital are still active in the market. Knowing where to look is key.
Tip #2: SBA Loans Are a Powerful Tool for Business Owners
“If you qualify right now, you win—because you can refinance later at a lower rate.”
Despite high interest rates, SBA loans remain one of the best financing options for small business owners. They allow for lower down payments, property acquisition, and the chance to refinance when rates decline.
Tip #3: Buy in High-Rate Environments, Refinance Later
“If the property makes sense at 10%, it’s going to make even more sense at 7%.”
George highlights that less competition exists when rates are high, which creates opportunities to secure assets at better pricing. Refinancing later creates significant upside.
Tip #4: Overcome Roadblocks by Expanding Options
“You can’t just go to one bank and wait 30 days for a no—you need five or six scenarios lined up.”
Borrowers often limit themselves to a single bank, leading to wasted time and rejections. George structures multiple lending scenarios up front to ensure the best outcome.
Tip #5: Pre-Approval Signals Seriousness
“If you qualify for $3 million, show that pre-approval—sellers will take you seriously.”
Pre-approvals not only clarify what you can afford but also position you as a committed buyer in competitive markets.
Tip #6: Bridge Loans as a Strategic Tool
“We closed a $2 million bridge loan in two weeks, then transitioned to SBA for the long term.”
Bridge loans allow investors to move quickly on time-sensitive deals. While costly in the short term, they create access to opportunities that lead to long-term profitability.
Tip #7: Commercial Real Estate as Retirement Planning
“You may sell the business, but you can keep the building—that becomes your pension.”
George emphasizes that owning real estate provides recurring income even after a business sale, offering stability and wealth in retirement.
Tip #8: The Impact of Rising Interest Rates
“Nobody expected rates to go this high, this fast, or stay this long.”
Interest rate hikes have created widespread distress, but also new opportunities for investors who understand how to structure debt.
Tip #9: Plan Ahead for Distress Situations
“If you’re three months from collapse, we can help. But it’s better if you call us with six weeks to work with.”
Early engagement with lending professionals provides more options and smoother solutions compared to waiting until the last minute.
Tip #10: Creative Financing Creates Opportunity
“Financing is the blood of business. With the right structure, even distressed situations can be turned around.”
George underscores that every deal has a path forward if borrowers are open to creative solutions like bridge-to-perm strategies or cash-out refis.
Resources & Links
Website: usbizfunding.net
LinkedIn: George Otel
