Commercial Financing 101 with Anton Mattli
Peak Financing CEO, Anton W. Mattli, has decades of experience in commercial and investment banking, private equity, and commercial real estate. After graduating from Zurich Business School in banking and finance, he held senior management positions at m...
Peak Financing CEO, Anton W. Mattli, has decades of experience in commercial and investment banking, private equity, and commercial real estate. After graduating from Zurich Business School in banking and finance, he held senior management positions at major financial institutions in New York, Tokyo, Hong Kong, and Zurich. During that time, Anton was heading a bank branch, managed cross-border teams, financed and restructured commercial real estate worth several billion U.S. Dollars, and oversaw loan portfolios consisting of aircraft and ocean transport vessels. Anton also directed the structuring of complex cross-border commodity and trade finance transactions for Fortune 500 companies.
In this episode, Anton talks about how to get yourself better prepared in commercial real estate so you avoid making costly mistakes. How he encourages one to have a mentor and coach is one important thing you need to consider. He also shares recommendations and suggestions on how to be equipped better for the undertaking.
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What you’ll learn in just 17 minutes from today’s episode:
- Know the difference between commercial financing and residential financing to determine the actual loan amount you can avail
- Learn action steps on how to prepare better before venturing into real estate to avoid costly mistakes
- Find out why you need to have a mentor or join a coaching class before getting into commercial real estate
Resources/Links:
Topics Covered:
- 00:30 – Where is Matt originally from
- 01:50 – What is the biggest difference between commercial financing and residential financing
- 03:35 – Why he left his banking executive position and pursue commercial real estate
- 05:45 – How relationship-building made it easier for him to transition to self-employment
- 06:57 – What is Peak Financing
- 09:49 – Mistakes people make when underwriting deals
- 10:57 – Assumptions about the loans that are completely off the mark
- 14:39 – What he recommends to people looking into commercial real estate to prepare them better
Key Takeaways:
“Residential financing, unless you do a big portfolio, your personal credit score, and income is really the most important element to it, obviously, the appraisal needs to come back but your personal debt to income ratio is the driver.” – Anton Mattli
“When it comes to commercial real estate, your personal income doesn’t matter. What matters is the property’s income stream. We call it generally net operating income, that these essentially drives how much the property is valued at, as well as what the so-called debt service coverage will be. And that will determine the loan amount.” – Anton Mattli
“I hope that anyone who is venturing into commercial real estate gets some form of coaching, I do not say necessarily that someone needs to sign up for a coaching class. But, at minimum have a mentor that has it done before.” – Anton Mattli
“The problem if you do not have a mentor, and you just join a coaching class, you may learn all the underwriting tools and teach you how to underwrite the deal, and prepare the proforma. But, very often these coaches are not really teaching the difference between how you underwrite as a buyer, and how a lender underwrites a deal. And very often they make assumptions when it comes to loans that are completely off the mark.” – Anton Mattli
“I would say, really talk to as many people that have done it as possible. If you can, I would recommend, and if you’re comfortable with it, partner up with someone who has already done it.” – Anton Mattli
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