|Posted by: Dana Paul Glass Nov 18 2004, 10:33 PM
| I am a loan officer who is seeking employment in commercial lending industry. I know that I may seem to be making a quantum leap but I have a strong grasp of the residential lending industry. I am very intelligent person who learns quickly and can piece together general information. In saying that I am asking for someone to give me a bit of a lay out of how to properly go about financing a commercial mortgage as the broker.
If someone wouldn't mind, please spell the process (along with any tips) step-by-step or as indepth as plausible.
Thank You so much and the favor can certainly be returned in various ways. Simply leave an email or contact number to be reached.
Dana Paul Glass
|Posted by: loanuniverse Nov 19 2004, 01:07 PM
” I am a loan officer who is seeking employment in commercial lending industry. I know that I may seem to be making a quantum leap but I have a strong grasp of the residential lending industry.” Well have you thought about coming to work for a bank as a commercial lender?
There are benefits to working for a bank lender instead of going on your own. Sure, you are giving up some upside potential, but there is a lot more safety with working for someone else.
The trick for commercial lending for banks is contacts as you can not rely on “walk ins” to the branch in order to get enough deals to make your production quota. The more people you know will not only bring you their business, but also refer friends and business acquaintances to you. I would guess that the same could be said about non-bank lenders.
Two career paths for a commercial lender in banking:
1- Concentrate on working capital financing for operating companies, which is essentially cash flow lending. You end up becoming a corporate lending officer, and will provide loans for operations including the purchase of real estate related to the operating company. As a corporate lender, you will get to do limited income producing property deals too.
2- Concentrate in real estate and end up dealing with constructions, conversions, and income producing property.
Either way, you are looking at six figures as a distinct possibility in this line of business. It is a sales job so you are measured by production, but it is a good career if you combine people skills with some analytical skills also.
|Posted by: avatarfi Nov 23 2004, 03:24 PM
| Dana - Try sending an email to gillian at avatarfinancial.com - she can probably give you some great pointers on getting started. She's not a loan broker, but she's familiar with the industry by neccessity, since we refer so many borrowers to other direct lenders and brokers in the commercial real estate lending market.
|Posted by: Commercial Lender Nov 25 2004, 11:02 PM
| Welcome to the commercial Side! Here is a quick set of pointers to get you started ( I am assuming u seek to get into brokering);
Know your financing options;
- Standard Mortgages (Flavors include Stated and full doc)
- Construction & Rehab Loans (To include rehabs, renovations i.e. fire damage etc)
- Hard Money (Look to them for special purpose properties and when u have clients with low FICOs. Expensive Option!)
Know your properties & Hook up with the right lenders;
Know what a Multifamily, Mixed Use, Retail, Office, Light/Heavy Industrial property is. Know how to differentiate. I.e a 10K sqft restaurant with a 100 Sqft apt for the dishwasher is not a mixed-use property. Find the lenders for the type of business you have and know your lender's program well i.e. what they can and cannot budge on. You want to get to the point of where u can look at a deal and know who can do it and how fast.
Know when to kill a deal;
Understand your lenders and their programs and if you will be able to know immediately if you either have a deal or are wasting your time. You may have to be the bearer of bad news and tell the clients you cannot help them. If you are in to conventional financing deal in your local states, I do not recommend taking on a construction project in Mexico. Understand that the fall thru rate of small commercial deals also applies to larger deals where more of your time and resources are involved.
Have an ever improving marketing plan; (Talk 2 me about this)
Have a commission strategy; (Talk 2 me about this)
Manage your Lender relationship well;
Find a bank/lender's account manager or loan officer that is responsive, knows his/her stuff and give you the facts without sugar coating them, stick with him/her. Your goal in to acquire a partner and develop a relationship where you line up the deal and he/she closes them. Period. If there is a problem, you are given a heads up in advance. We for example do initial underwriting ourselves and depending on my our relationship with a broker AND his/her $ volume, I do make rate/LTV exceptions, tailor many many things.
Avoid Creative Financing;
Avoid putting spins on scenarios. When you have a deal, present it the way it is and believe the loan officer will try his/her best to get it done. I have a long laundry list of amature things i.e. submitting a credit report with dates modified, altered property types, incorrect immigration status, modifying property titles before closing etc. Some 'creative financing' actions, esp. with the recent mortgage frauds, border criminal. Ask for help and you will get it but don’t do anything unethical or illegal for you may find your name taken off a lender guest list and or have a lawsuit on your hands.
A few other things but anyway....Aside from what we do, I can recommend a few other lenders but don’t want to post my opinions on programs. Feel free to email me if you would like some more info: MetWestNaj@yahoo.com. Good Luck! Thanks Naj