Case Study: BridgeInvest's Strategy to Double CRE Loan Originations in 2024
Challenge
As the firm continued to grow, the challenge for 2024 was ambitious: Double its loan originations from $300 million in 2023 to $600 million. This would require not only leveraging their existing relationships, but also expanding into new markets and refining their origination processes to accommodate a higher volume of deals.
Results
As of Labor Day 2024, John Gitman said BridgeInvest had already closed $240 million in deals, with another $280 million scheduled to close within 30 days. This put them well on track to exceed their goal for the year. By focusing on high-touch relationships and strategic use of technology, BridgeInvest not only doubled their originations from the previous year but also positioned themselves for continued growth.
Looking Ahead
BridgeInvest’s focus moving forward will be on the effective deployment of their newly raised capital. With an eye on future expansion, the company is exploring opportunities to diversify into new verticals, including direct property purchases and joint ventures.
Key Takeaways
Relationship Building: Investing heavily in high-touch relationships is best for securing large, repeat deals. However, by leveraging Biscred, BridgeInvest found that casting a wide net to build a broad base of lower-tier contacts can be both cost-effective and fruitful.
Technology Integration: Efficient use of CRM systems and project management tools is essential for scaling operations and managing increased deal flow. These technologies enable BridgeInvest to maintain a personal touch while handling a larger volume of transactions.
Targeted Outreach: Combining strategic marketing with vast databases like Biscred allows BridgeInvest to reach specific market segments effectively. This dual approach—targeting both high-touch relationships and a broader audience—maximizes their ability to capture and close deals across different tiers.
Strategy
“Real estate is very much a people business,” says John Gitman, partner at BridgeInvest. “We build personal relationships.” With a people-first strategy in mind, he described how BridgeInvest took a two-prong approach by investing in human resources and technology. First, they hired more staff to manage their most important relationships. Second, they used technology, including Biscred, to open doors to new opportunities.
1. Focused Relationship Management
BridgeInvest has always emphasized the importance of relationships in the real estate business. They categorized their contacts into a tier-based funnel:
Base-tier: Unknown or minimal contact
Mid-tier: Known contacts but with less frequent interaction
Top-tier: Strong, established relationships (also called high-touch)
Initially, the focus was on moving as many contacts as possible from the base to the mid-tier. However, experience showed that the best returns came from deepening relationships in the mid and top tiers. By dedicating more resources to nurturing these relationships, the company was able to generate more high-value deals.
2. Leveraging Technology
BridgeInvest is a tech-heavy organization, relying on CRM systems and project management tools like Asana to streamline their operations. Despite being in a traditionally relationship-driven industry, they recognized the importance of process automation to handle increased deal flow.
3. Targeted Marketing and Outreach
A significant part of their growth strategy involved targeted outreach. Using Biscred, they identified and contacted multifamily property owners in secondary markets where they wanted to grow. This approach yielded successful outcomes, including a $20 million loan deal in Tulsa, Oklahoma, which became one of their best-performing projects.
4. Expanding Market Presence
This regional diversification was crucial in hitting the $300 million loan origination mark in 2023, and it is expected to play an even more significant role in 2024.