 |
Getting Started as a Commercial Mortgage Broker
Author: Patrick Bedall  | Posted: 29-06-2007 | Comments: 0 | Views: 90 | Rating: (73)  (?) 
 Tips to get you into one of the hottest industries in the US.
Are you ready for a change? Have you been looking for an opportunity for uncapped earning potential while making your own hours? If you have a mind for problem solving and a sincere desire to help people, then the Commercial Mortgage Industry may be for you.
The Commercial Mortgage Industry is quickly becoming one of the hottest industries in the United States. The surge of Small Cap mortgages coupled with the need for knowledgeable mortgage brokers makes this the best time to take advantage of this opportunity. All it takes is a desire to learn and grow and the right partner on your side.
As with any industry there are obstacles you must overcome to be successful. For the Commercial Mortgage Industry, these barriers include (but are not limited to):
-Proper training in commercial underwriting.
-Lender relationships and loan programs
-Deal Flow. Getting clients in the door.
-Geographical service limitations.
The first step to getting your foot into this hot industry is the proper training. As you are looking for training, it is important that you find the most in depth and comprehensive training possible. While most direct lenders will provide free training, the training is almost always directed toward the loan products offered by that lender. This type of training, while valuable, will not provide you the breadth of knowledge you will need to be successful in this highly competitive industry. Look to the established industry organizations like the Mortgage Bankers Association or the National Association of Mortgage Brokers for better training opportunities. Another option is to look for a company that serves the interests of commercial brokers as a whole. These companies should provide the best training options and may also include other services that will make your transition a bit easier.
The role of the commercial mortgage broker is to provide financing solutions for commercial property owners. Often brokers are called upon for seemingly difficult financing scenarios. The key to finding a solution is locating the right lender with the right loan product. In the past, this meant a lot of research. There are hundreds of sources for commercial loans representing thousands and thousands of financing options. The best route for someone new to the industry is to locate a database of lenders that will allow you to input the loan information and allow the system to narrow your search to a handful of potential lenders. This technology is somewhat new to the commercial industry so be careful that the database allows you to search programs from multiple lenders, not just one or two. Keep in mind that these lenders want your business, you are their client. They should be willing to do the work required to match a loan program to your needs.
So now you have the training and the lender options in place, now comes the most important piece, the clients. You will spend the majority of your time looking for borrowers that need your assistance in helping them find the right financing. The key to building a client base is education. You must educate your potential clients in the commercial industry and above all why they should work with you. Marketing to potential clients is both time consuming and can be costly. Finding the best way to market yourself will require a bit of research and testing. As you build your business you will find that most of your clients will come from referrals. These referrals can come from friends, family, or your network of existing contacts. Be sure to let everyone you know that you are now a commercial mortgage broker and what services you provide. You may be surprised to find that your existing contacts may be your best source for business.
What about commercial mortgage "leads"? Many companies offer leads that you can buy. Just be careful about buying leads. Some can be great, but some can be a great waste of money. Leads are often offered to multiple brokers at the same time and you will find yourself competing with several (or many) other brokers for the business. The key term you want to keep an eye out for is "exclusive referrals" not leads. This means that you are the one and only broker receiving that referral and in this industry, a referral is gold. Exclusive referrals are of course not free. Often they are part of a membership to a brokerage service which includes additional services as well. Be aware that these golden opportunities may mean a commission split with the provider that may take up to half of your income. The best advice is to go into any lead or referral situation with your eyes open.
The final aspect you need to keep in mind as you venture into the commercial mortgage industry is your geographical reach. I don't have to tell you that if you limit yourself to working deals solely in your local area, your earning potential will be equally as limited. Though it will take time, or just the right partner, your best bet is to serve as large a geographic area as possible. This flexibility will enable you to increase your potential client base and your potential income. Once you determine your target regions you will need to obtain the necessary licenses and qualifications to do business in those states. A few states require a special license to broker commercial mortgage loans. However, most states only require a basic qualification to do business. You should always consult your attorney to make sure you are taking the necessary steps to operate your business within the constructs of the law. It is a reasonable expense given the peace of mind you will have in knowing that you are conducting your business in accordance with the law.
Finding the right partner or mentor is a great way to start your career in the commercial mortgage industry. We all know it is much easier to get into something new when you have a friend that already does it. How many people decide, on their own, that skydiving is a good idea? It takes a friend that knows about it to get you involved. To show you the ropes and get you off the ground. This puts you more at ease with trying something new. Knowing someone who has "been there done that". In the commercial mortgage industry, a little research and networking, will allow you to find the right partner to help get you started in this exploding industry.
In summary, the commercial mortgage industry provides a wealth of opportunity for those willing to put in a little hard work. While there are many companies out there that are willing to help and do provide a valuable service, there are equally as many, if not more, that are of no value to you at all. Do the research and go in with your head up and your eyes open and you may find wonderful opportunities within the commercial mortgage industry. Good luck!
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/careers-articles/getting-started-as-a-commercial-mortgage-broker-172800.html
About the Author:The VEC Financial Group (VEC) was created to SOLVE THE PROBLEMS FACED BY COMMERCIAL MORTGAGE BROKERS and to provide Associate Brokers with the tools, support, and clients required to be successful. Together with the Commercial Real Estate Investors Network (CREI) we are changing the commercial finance industry. For more information on how to join VEC Financial Group or CREI please visit our website. VEC FINANCIAL: VISION-EXECUTION-COMMITMENT
http://www.vecfinancial.com
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Commercial Finance Deals Across America- is it Possible?
By: Patrick Bedall | 29/06/2007 | Real Estate
Maybe you have deals from here covered. Now, what about there and everywhere? Is being in the right place at the right time all it takes for you to be successful in the commercial finance industry? It may not be all it takes, but it is certainly where it starts. If a potential client doesn’t know you and doesn’t know that you are the right broker for the job, then you will never get the deal. Is this a fair assumption?
Prolonged Unemployment: Reconnecting With The Labor Market
By: Virginia Bola | 14/09/2006 | Careers
If you have been unemployed for an extended period of time, you know that potential employers are going to look at your long period of unemployment with a jaundiced eye.
So Many Restaurant Jobs
By: David Leonhardt | 26/04/2007 | Careers
Many people seek job opportunities in restaurants. And there are many jobs to be done. We offer you the "cook's tout" through the workings of a restaurant, and a first-hand look at the restaurant jobs typically available.
Viral Marketing – Can it Effect your Employment Brand?
By: Bob Gutowski | 05/02/2008 | Human Resources
A Three Part Series - The good, the bad and the ugly
Part 1 – The “Good” The impact of a good product experience
Part 2 - The "Bad" The impact of Bad work Environments
Part 3 - The "Ugly" The impact of Lay-off’s, Restructures or Downsizing
Getting Help With Free Career Tests
By: Sharon Walker | 31/03/2008 | Careers
You may already have heard about free career tests, but you might be wondering whether they are actually useful.
What is the Right Job for You?
By: ALi | 10/05/2008 | Recruitment
So many times people have faced this dilemma that they cannot decide what are they made to do. You have to decide about this at so many times in your life. Like, during your education, you always wanted to choose the right course, right subjects and the right questions from an examination point of view.
Job Interviews - When He Asked, "how Do You Motivate Yourself?," I Was Without a Good Answer
By: Ed Bagley | 11/06/2008 | Business
A reader emailed me with this question: "I was in an interview, and was asked this question: How do you motivate yourself? I could barely answer the question. What would you suggest?" That is a great question that deserves a great answer. After managing dozens of employees over the years, I can tell you not what I think, but what I know. Get the full story.
Salary Comparison and the Importance to You
By: David Harris | 14/07/2008 | Human Resources
Whenever you are looking at either a new career or a promotion, you will want to have the knowledge necessary to negotiate and ensure that you are paid fairly. This is where you can use a site such as www.wagehub.com.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I am looking for a position with your Company for ...
By: Frann gross | 16-08-2008
I am looking for a position with your Company for a credit collection person.
I had 19 years with one Co. I will be glad to e-mail or fax a resume .
Thank You for your time.
Frann Gross
Should I accept the settlement?
By: liz | 15-08-2008
I made my company aware of illegal activities going on and was then offered a "buy out" settlement agreement. It is not enough money to live on ...but I am afraid if I don't sign, I will be terminated. What should I do?
Unemployment insurance
By: Robert Holdorf | 15-08-2008
What employers are not required to have unemployment insurance?
Looking for work
By: Betty | 15-08-2008
Has any one found a legitimate work at home job if so can you email me and let me know? I need to find a work at home job right away.
bettypatten@aol.com
Tips to getting my resume noticed
By: D L Edwards | 14-08-2008
I have placed my resume with MANY companies for positions for Administrative and Clerical positions but have received little to no response. What can I do to make my resume stand out??? I have great references and a strong education and work background.
How much do i say after terminationfrom work on a ...
By: glo | 11-08-2008
how much do i say after terminationfrom work on a job application?
Q&A Powered by: 
Latest Careers Articles
Carhartt Clothing
By: Mike Girolami | 08/09/2008
Overalls have long been a staple of outdoor work. From early railroad workers to farmers to almost anyone who had to stay outside for long periods of time, these garments have been a rugged example of clothes that can stand up to the harshest environments and toughest work demands. Carhartt...
Thinking About Your Goals As a Nurse
By: ROBYN KNAPP | 08/09/2008
As the student nurse approaches graduation, thoughts of beginning a career in nursing come to mind. A new nurse should think very seriously about their career goals. These include long term as well as short term goals. As with any path of life that an individual takes, it is not...
Tips on Taking the NCSBN (National Council of the State Board of Nursing)
By: ROBYN KNAPP | 08/09/2008
NCSBN (National Council of the State Board of Nursing) does not have established guidelines for graduating students as to when to register. However, registering for the NCLEX examination and licensure during the month of the student's graduation is common. Note that registering to take the examination and applying for licensure...
Nurses and Unions, Changing Times
By: ROBYN KNAPP | 08/09/2008
Since the days of Florence Nightingale, the profession of nursing has been viewed as a career consisting of self sacrificing individuals who, with caring and compassion have devoted their lives to easing the pain and suffering of those in need. Such noble and honorable individuals would surely never strike for...
What is the Code For Nursing?
By: ROBYN KNAPP | 08/09/2008
Nursing is a profession that places on its participants a great responsibility for maintaining the highest possible standards to ensure superior quality of care. Each state has its own Board of Nursing which is responsible for the regulation and licensing of nursing practice. As the profession of nursing continues to...
Nursing Jobs on the Rise
By: ROBYN KNAPP | 08/09/2008
It has been predicted that the baby boomer generation will be the most effected by the changes health care system with regard to nursing care. The current health care system is in a state of flux. With insurance companies constantly raising rates and premiums, and the hospital stays becoming less...
What Determines Nursing Salaries
By: ROBYN KNAPP | 08/09/2008
In today's economy with declining employment in many fields that require degrees, the profession of nursing is as solid as it ever was. People with prior degrees are looking to enter the nursing profession. The salary of a nurse varies greatly. There is really no base salary but a fluctuation...
Nurse Salaries For Different Nursing Fields
By: ROBYN KNAPP | 08/09/2008
Many new graduate nurses are readily offered jobs prior to graduation. The positions that they are offered are usually those with the title graduate nurse or GN. For the most part, new graduates are looking for employment near their home. Since the general nursing student is now in their early...
More from Patrick Bedall
Commercial Mortgage Broker Marketing Secrets
By: Patrick Bedall | 29/06/2007 | Mortgage
Countless surveys and articles have been written about how an independent commercial mortgage broker can market themselves. You can attend seminars, read books, listen to web broadcasts, or get the advice of your business associates. Marketing advice is everywhere, but who gets it? Who does it right? What can you do to bring clients to your doorstep?
Commercial Finance Deals Across America- is it Possible?
By: Patrick Bedall | 29/06/2007 | Real Estate
Maybe you have deals from here covered. Now, what about there and everywhere? Is being in the right place at the right time all it takes for you to be successful in the commercial finance industry? It may not be all it takes, but it is certainly where it starts. If a potential client doesn’t know you and doesn’t know that you are the right broker for the job, then you will never get the deal. Is this a fair assumption?
Commercial Mortgage- 5 Factors That Affect Deal Flow
By: Patrick Bedall | 29/06/2007 | Mortgage
How do you get clients in the door? Do you have the budget and time to undertake a massive marketing campaign? Could experience with multiple property types and applications increase your value to the commercial market? Where are your deals located? How is the market in your area? Is your referral network bringing you enough business? These are all questions you need to consider when you think about how to increase your deal flow.
|
|
Careers 
