Profile: Peter Reed of the Sherwood Mortgage Group

Profile: Peter Reed of the Sherwood Mortgage Group

Profile: Peter Reed of the Sherwood Mortgage Group Based in Regina, Peter Reed specializes in land development and construction financing, owner-occupied commercial buildings, multi-family, and commercial income producing properties. Prior to starting in commercial mortgage, Reed has worked with a major bank and credit union in the commercial finance sector for over 15 years.

What has changed in Saskatchewan between the time you started and the present?

When I first started [around 4 years ago], we were on the tail-end of a real estate boom, so my focus back then was mostly on construction financing. Since then, our economy has shifted, and we now deal more with long-term financing.

What are the particular challenges in the Saskatchewan market? How do you cope with these challenges?

Right now, the Saskatchewan market has overbuilt in the residential sector. In the past, there has been a widespread appetite among the banks to provide financing for single- and multi-family housing, but now this is diminishing.

And as to how I cope with the sharp increase in vacancies? I have to be more creative. I bring in new lenders that have an appetite for alternative financing. For developers and builders who have vacant products, we are currently doing a lot of inventory and asset-based financing. As a broker, I have the capability and opportunity to sell multiple types of products—and as our market shifts, I can introduce different kinds of lenders to meet each of my clients’ needs.

How would you describe your day-to-day work as a commercial mortgage professional?

Half of my day involves meeting with clients and understanding their businesses. I spend that time touring whatever projects they might have, discussing with their professionals (their accountants, their lawyers, et cetera), understanding what their needs are, and educating them on the types of financing that might be the best fit for their respective situations—basically, teaching my clients and setting the right expectations.

The rest of my time is spent on packaging the deal and working with professionals in order to put together the strongest possible scenario, both for the lender and for the client. Essentially, my role is being the negotiator in the middle.

What would be your advice to younger industry professionals who want to enter the Saskatchewan commercial mortgage sector?

Expand your product knowledge. Understand that you have not just the big banks, but also plenty of alternative lenders with great terms and conditions that could better meet a particular client’s needs.

Also, spend as much time getting to know your lenders and their products as you do going out and looking for business.