Here are some tips on how to succeed as a commercial loans broker:<\/p>\n
Tip #1: \u00a0Never waste one nanosecond on international loans. \u00a0International loans never close.<\/strong> \u00a0The problem is one of taxation. \u00a0No country in the world wants a bunch of foreign banks to come into their country and take all of the good loans, thereby weakening their own banks. \u00a0As a result, if a foreign bank makes a loan across international borders, the host country will tax their interest income at some ghastly rate – higher than 30%. \u00a0As a result, if you need a loan in Mexico, and no local bank will do the deal, you need to use the Mexican subsidiary of some foreign bank; Deutsche Bank of Mexico or Citibank of Mexico. \u00a0If the subsidiary bank is chartered in Mexico, the tax laws aren’t quite as brutal. \u00a0I still would never waste time working on international loans. \u00a0You could work on international commercial loans for ten years, full-time, and never close a deal.<\/p>\n Tip #2: \u00a0Commercial banks, credit unions, and savings banks (former S&L’s) make 75% of all commercial real estate loans these days. \u00a0Start there.<\/p>\n Tip #3: \u00a0Big banks make big commercial loans, and small banks make small ones. \u00a0Therefore match the size of your deal to the size of the bank.<\/p>\n Tip #4: \u00a0Stay local. \u00a0Banks greatly prefer to make commercial loans close to one of their branches. \u00a0The closer the bank, the more likely it is that Loan Committee will approve the deal.<\/p>\n Tip #5: \u00a0It’s easy to find commercial banks and credit unions in Maine, even if you are located New Mexico. \u00a0Simply go to Google Maps and type in the address of your commercial property in Maine. \u00a0Click the “Nearby button” and then type in “banks.”<\/p>\n Tip #6: \u00a0The smaller the commercial loans, the more likely the deal is to close. \u00a0Small commercial loans close.<\/strong> \u00a0Larger deals? \u00a0Not so much. \u00a0I would much rather have a pipeline of three small commercial loans than a pipeline of thirty commercial loans larger than $3 million. \u00a0Small commercial loans close.<\/p>\n Tip #7: \u00a0This is going to sound terribly self-serving, but Alliance Group Capital<\/a> loves to close small commercial loans in remote areas. \u00a0You will have much less competition working on these small or remote commercial properties, compared to competing against fifty other commercial loan brokers in your local big city.<\/p>\n Tip #8: \u00a0When you market for commercial real estate loans, you will speak daily with four or five wealthy real estate investors every single day. \u00a0Even if they never send you a package, be absolutely sure to keep their contact information and the following additional data: \u00a0(1) month of year, e.g. June of 2021; (2) the loan amount; (3) type of loan (first mortgage, construction loan, etc.); (4) property type; (5) city where the property is located; and (6) state where the property is located.<\/p>\n Tip #9: \u00a0Someday you will want to send out the following, individually word-processed letter: \u00a0“Dear Dr. Su: \u00a0You may recall that in June of 2021, ABC Commercial Mortgage Company had the pleasure of working on a $1,300,000 first mortgage on your medical office building in Kansas City, Missouri. \u00a0I am writing to you today about earning 8% to 10% interest in first trust deeds.”<\/p>\n