Board Topic: Commercial Loan Broker
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Commercial Loan Broker

Posted by: Derrick Rose Nov 26 2004, 04:28 PM
I would like to start my new business as a Commercial Loan Broker (intermediary between lender and borrower)
Would you please inform whether a license would be required in the state of Texas.
I do have some experience as an residential real estate investor but would like to expand in this particular sector.
What is your opinion of this area of business, my expectation is to generate an av $ 5000 p/m.

Thank you.

Posted by: Commercial Lender Nov 26 2004, 09:38 PM
Hi Derrick!
That goal is def reasonable. I currently deal with a few brokers in TX who easily do twice that with an average of one to two deals a month. The key is having solid lender contacts and professional training on screening deals, a good marketing plan and managing your time and biz expenses. Ethics is def a topic that is not stressed enough in many training seminars/sessions etc. Read some pointers that i had posted for another broker looking to expand in to commercial.....i think it will help! The majority of the commercial business (in terms of deal volume not dollar) is small commercial; this is your multifamily, mixed use, office, retail and warehouse properties. Having said that, next time you drive down ANY street, notice these properties and remember that SOMEONE out there is purchasing/refing them. Then you have the smaller volume of deals which require special lenders i.e Hard Money, Construction, trust lendning etc which will or shall i say SHOULD, make up a lesser but very important of component of your business. Stick to metro areas and suburbs like Dallas, Austin, Sugarland etc etc. Avoid areas which are less populated cause the lack of sales comparables will rip the appraisals apart. Email or gimme a buzz if you have any questions. Thanks. Naj

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