| Of course there's a lot that goes into being a | | | | like trying to predict the future. Of course if the |
| successful commercial mortgage broker like | | | | commercial mortgage broker doesn't think they |
| marketing, contacts, sales skills, technical | | | | can close it, or won't be that competitive, they |
| knowledge of the industry, market knowledge, | | | | won't work on it. Again this is all about protecting |
| bank contacts, proper administration set up, etc | | | | their time. |
| so I'm not trying to over simplify the issue; but in | | | | Is it a fundable deal? They know, without having |
| general why are there commercial mortgage | | | | to put weeks into shopping banks, where to place |
| brokers that make seven figures incomes and | | | | the loan. They determine within a half hour if they |
| many that can't break $100,000 per year? | | | | like the deal or to walk from it. They know how |
| The most important component to this, I believe, | | | | to review borrower's tax returns and financials as |
| is the quality of the deals that the commercial | | | | this is what underwriting is going to look at when |
| mortgage broker DECIDES to work on. For many | | | | they consider the loan request. Questions like: |
| this may seem a little contrary to their | | | | What's the Net Operating Income? Can we hit the |
| fundamental "sales" outlook that operate under a | | | | required Debt Coverage Ratio's? How are the |
| more reactive basis and work on any or all loans | | | | business trends, etc? Have to be answered |
| that cross their desk. Perhaps they're not that | | | | satisfactorily. |
| busy and work on weaker loan requests. But | | | | We see many newer commercial mortgage |
| successful commercial mortgage brokers are | | | | brokers that submit loan requests that have no |
| empowered. | | | | chance of closing because the cash flow is |
| Excellent commercial mortgage brokers are | | | | underwater. If the broker knew how to review |
| extremely careful and selective on which | | | | tax returns they wouldn't have bothered to work |
| borrowers and which deals they will work on. If | | | | on the file from the beginning! (We wrote a |
| they don't like the deal they won't work on it. If | | | | training manual on how to prescreen commercial |
| they don't think they will get multiple transaction | | | | mortgages, available on our website) |
| out of the borrower they'll be less interested in | | | | Can I get multiple deals from this borrower and |
| working with that borrower. If they feel a | | | | are the loans fat? The ideal client is one that |
| borrower is just shopping them they walk or | | | | purchases or refinances multiple loan per year and |
| convince the borrower to take them seriously. | | | | will have some loyalty. Will they sign my exclusive |
| Again, for whatever reason, they will pass on the | | | | broker fee agreement? Rather than spending |
| loan request and invest their time into deals that | | | | your time prospecting, you're submitting packages |
| are not only doable but will serve their long term | | | | and negotiating deals. Rather than sending mailers |
| goals. | | | | to commercial real estate brokers, you're |
| One component to this is being excellent at | | | | reviewing term sheets and scheduling closings. |
| screening loan requests. What's happening here is | | | | Again there's a lot that goes into being an |
| the commercial mortgage broker is trying to | | | | excellent commercial mortgage broker but one of |
| determine, before they put a lot of time into the | | | | the biggest factors is how the broker chooses to |
| deal, if they can close it and how competitive | | | | spend his time and which deals he chooses to |
| they will be with their existing contacts. Think of it | | | | work on, or to run from. |