EP003 How to succeed in commercial real estate financing: Insights from CFO Capital

This week, we dive into the world of commercial real estate lending through the expert lens of Bin Han, Managing Director at CFO Capital. Bin shares his vast experience and strategic approach to financing major real estate investment opportunities. As a key figure in the commercial mortgage market across Canada, he offers a detailed overview of the complex processes involved in securing capital for large-scale investments.

This episode is available in both English and Mandarin Chinese on our YouTube channel. 此集节目也有英文版本，请至YouTube频道观看[家话地产]。

Originally aired on November 15, 2021, this episode is now available for rebroadcast on our YouTube channel. Here is a brief excerpt from the English transcription:

Chia-Yi Tung
Hello, everyone! I’m Chia, your happy broker and multilingual host for Real Talk with CHIA. Today, in our third episode, I’m thrilled to welcome Bin Han. Bin is the Managing Director for Quebec at CFO Capital, a top-tier commercial mortgage brokerage firm in Canada. Today, he’ll be sharing insights on commercial real estate financing. Thanks for being here, Bin!

Bin Han
Thank you for having me.

Chia
We’ve known each other for many years now, and I remember you started your career at TD Bank before moving to Desjardins, serving as a Commercial Director for the Asian markets. Now you’re with CFO Capital. What made you leave a stable position at a major bank to join a private firm like CFO?

In this episode, Chia and Bin explore a range of topics that are crucial to understanding the complexities of commercial real estate lending, including:

• The challenges and opportunities of transitioning from traditional banking roles to working at a private capital firm.
• The intricacies of structuring commercial real estate loans, and the balance between rational decision-making and emotional factors in career moves.
• Lessons learned from complex real estate deals, including a case study involving a multi-million dollar residential acquisition and renovation project that required intricate financial structuring.
• The difference between market value and economic value, and how investors can navigate these gaps in today’s competitive real estate environment.
• The growing role of mezzanine financing in construction and real estate development, and how it provides flexibility for developers to raise capital beyond traditional bank loans.

Bin
One of the key challenges in today’s market is the rising cost of land and construction. This creates a gap between market value and the economic value that lenders assess. As a result, mezzanine financing has become more popular, allowing developers to leverage additional capital. At CFO Capital, we work with clients to structure loans that make sense for their long-term financial goals.

Additionally, the episode addresses the critical role of cross-border investment in Canadian real estate, as Chia and Bin discuss strategies for international investors interested in diversifying their portfolios in Montreal and other key Canadian markets.

Bin’s final takeaway:
"Investing in Canadian real estate requires working with trusted professionals. Whether it's a broker, accountant, or lawyer, having a knowledgeable team on the ground is essential for success in cross-border transactions."

To watch the full episode, head over to our YouTube channel and follow us for more insights into the world of commercial real estate and investment strategies!