There are a few main skill sets that are needed in order to become a commercial mortgage broker.
1. You need a strong lender network.
2. Some type of reliable deal flow i.e. marketing program and
3. You have to be able to prescreen deals. Becoming a commercial mortgage broker is no joke and will require a few years of hard work to get established. There's a lot of people out there saying how easy it "really is". The sources touting this, are usually lenders with rates 200 to 300 basis points higher than market and are looking for newbie's to sell their rates to unknowing borrowers.
Strong Lender Network
Having strong relationships with your lenders is key. Although this would seem common sense many people in the business do not practice this, to their determent. You need quick, thorough decisions. Having your files on top of their pile is ideal. If the bank representative doesn't respect you, they'll think you'll will waste their time on deals that have a very low chance of closing or that will end up with a broker that does.
If you're still learning the business and they know it, they'll most likely appreciate a little loyalty from you as they hold your hand and teach you the finer details of the business.
Marketing
Marketing is fundamental. You need to compete on a lot of transactions in order to find fundable deals and ones in which you can have some control over. Obviously there are many marketing methods out there. The traditional method is developing relationships with the local developers, commercial real estate brokers, CPA's, attorneys, bank representatives, etc. This is probably still the best way, though it takes a lot of time and is the hardest method as you may work on a relationship for some time before the referral source even has a chance to "throw you a bone".
Newer methods include mailers, email campaigns, ads in newspapers, etc. Regardless of which route you go you need some type of program to keep that phone ringing.
Screening Deals
The amount of time and effort that goes into most deals is significant. Knowing how to examine and analyze a loan request is critical. You can easily waste 100's of hours on loans that have no chance, 0% chance of closing. It may sound dramatic but it is true. Probably 50% of the loans we screen are not fundable - period.
The reason? Its normally some type of combination of loan to value being too high, credit to low and here's the big one that all of us trip over, the borrower not being able to document enough income on their tax returns. Showing income for most entrepreneurs to the IRS is often like a spy reviling its secrets in an interrogation - they just don't want to do it. And there is definitely an "art" side of putting together tax returns. CPA's have some freedom on how they report income and will often put together tax returns in completely different ways.
Or many brokers drop the wrong deal, simply because the net business profit is negative on the tax returns. Many of these loan are fundable but the broker just doesn't know how to get really "deep" into the tax returns and find the income that is there and is often being sheltered by depreciation, depletion, amortization, or having items reported twice that can be added back to increase the income that can be just for underwriting to service the debt.
Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $100,000 - $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed, 90% non SBA financing, Commercial Equity Loans. 248 885-8797. In addition they have opened up a commercial broker STORE, offering legal contracts, training books, spreadsheets, etc.commercial loan officer training or how to read tax returns
ไม่มีความคิดเห็น:
แสดงความคิดเห็น