If you want to succeed as a commercial mortgage broker, you need two things:
- A large number of referral sources who are in a position to refer you a lot of commercial mortgage leads.
- A large number of wealthy clients who regularly need commercial real estate loans themselves and/or who have lots of friends who need commercial real estate loans.
Today we are going to focus on item two in the list above.
The good news – and this is really good news – is that its easy for a commercial mortgage broker to meet high-net-worth investors. Why?
The vast majority of your borrowers will be wealthy investors. After all, poor folks don’t own multi-million dollar commercial properties. Wealthy investors do! It’s like being a Rolls Royce salesman. The people walking the car lot are unlikely to be janitors.
Therefore almost every time you are speaking with a commercial mortgage borrower, you are speaking with a wealthy investor. In fact, I have often said,
There is no easier way to meet high-net-worth investors than to be a commercial mortgage broker.
[Side note: I own a $50 million hard money shop, and every single one of my early trust deed investors was a former borrower. Do you see the benefit of staying in touch with your wealthy former borrowers?]
Once you have worked on a commercial real estate loan for a wealthy investor, regardless of whether or not the deal actually closed, you have established legitimacy with him.
You are no longer some stranger that he met calling out of the Yellow Pages or over the internet. You are a real life person who treated him honestly and worked hard for him. If the deal didn’t close, the investor may even feel a little obligated to you because you worked so hard for him and didn’t get paid.
You must be tenacious about staying in touch with the wealthy investors that you meet in the legitimate course of business.
Not only will these wealthy investors need commercial loans in the future, but so will their buddies at the country club.
So what’s the best way to stay in touch with your list of wealthy investor clients? I recommend a fun email newsletter like this one.
If you want to be rich, you will add three to five new wealthy investors to your email list daily.
“Three to five per day? George, I don’t meet three to five wealthy investors daily!”
Yes, you do. How many commercial loan shoppers do you talk to daily? Eight to ten? If so, at least three to five of them will be bona fide income property investors, people with whom you want to stay in touch.
Remember, all you have to do is to quote a commercial loan to an investor to establish the beginning of a relationship. Even if he never sends you his commercial loan package, you should add him to your contact list.
You know what drives me absolutely nuts? Newbie commercial mortgage brokers working on international loans, loans on gold mines, or other goofy, never-going-to-close deals, rather than building their email list of wealthy investors (with whom they have a little bit of a relationship) and their email list of referral sources. Dumb-dumb-dumb.
You can make all kinds of money from your wealthy investor clients:
- You can arrange commercial loans for them.
- You can pay them referral fees for referring their friends.
- You can sell them mortgage investments. Remember, I own a $50 million hard money shop, and all of my early mortgage investors were former borrowers.
- You can syndicate your wealthy investors to buy foreclosures or other opportunistic real estate investments.
So pay attention! You are already meeting three to five wealthy investors every day. Capture their address, phone number, and email address and then add them to your email list. Then hit them with a fun newsletter at least every three weeks.
If you found this article to be instructive, I strongly encourage you to subscribe to our blog via email. To get a copy of each new training blog article as it comes out, without having to remember to come back, please fill in your email address in the space provided on the right.
Lastly, if you're a buddy or a former student of mine, would you please-please-please do me the great kindness of hitting the Like button, the Google+1 button, and the Linked-In Share button above. Thanks so much. :-)