Commercial brokers (the correct term for commercial real estate salesmen and brokers) are no longer just listing their commercial property on LoopNet and sticking a sign on the property. They aren't just sitting there, patiently waiting for the phone to ring.
Instead, commercial brokers are taking a more proactive approach these days. They are pushing their marketing brochures out to both commercial real estate investors and other commercial brokers using mass email services. Quite a number of these commercial real estate marketing services now exist. Here are just a few:
Each of these marketing services charges between $100 to $1,000 to blast out a mass email to tens of thousands of recipients. Some of these services boast a commercial real estate circulation of over 120,000. That's a lot of exposure for a marketing brochure for less than $200. We have heard good things about BigBoysBlast.com.
Commercial loan companies are also successfully using these mass email marketing services. I know they have been successful because at least one commercial mortgage company is re-using their services about once every 10 days. If they weren't getting a lot of good commercial loan leads, they would have discontinued using the service.
If you own a commercial loan company, you can also buy leads from C-Loans. Our leads are priced differently from every other commercial loan lead seller in the country because we know our leads are good. C-Loans has closed over 1,000 different commercial loans totaling over $1 billion, including one in June that was $18.5 million. The broker on that deal made a sweet $92,500 commission because he used C-Loans.com.
Instead of $40 per lead, the up-front cost of our leads is just $1 to $9 each. However, when the commercial loan closes, our lead-buying commercial loan companies owe us an additional 37.5 bps. But that probably works just fine for you because you have just earned a big commercial loan brokerage commission.
I have often commented that, "No one gets cheated in business more often than the typical commercial loan broker." Borrowers outright lie to us all the time, and based on that lie, we waste countless working hours chasing a commercial loan that has no chance in heck of ever closing. It's why I went back to law school at age 32, with two kids in diapers.
Yesterday we received notice that we just won our case against another lying borrower. Our award was on the order of $48,000. "Yeah, George, but suing people is easy for you. You're an attorney." Folks, I had nothing to do with trying this case. My wonderful E.V.P. (a non-attorney) filled out the one-page Demand for Arbitration in pen, and she handled the entire trial herself.
So stop being a victim of lying, cheating, fraudulent borrowers who think that because you are on commission that your time and effort have no value. These "users" are horrible people. We don't sue unfortunate people. We sue the "users" and "evil actors". Clearly the arbitrators have agreed with us over the years by consistently ruling in our favor. These horrible "users" have no compassion for your family or the terrible economic stress under which you live (being on straight commission); so stop being a victim.
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