For example, let's suppose a borrower tells his mortgage broker that his existing private money lender will subordinate to a new loan, and the trusting mortgage broker spends 20 hours finding a lender willing to make the commercial loan. When it comes time to close, the poor mortgage broker finds out that the existing private lender absolutely refuses to subordinate, and the thoughtless borrower hadn't even asked him for his willingness. The borrower just says to the mortgage broker, "Too bad, so sad. You'll have to make it up on the next guy."
When the mortgage broker goes to sue the scum-bucket borrower, he finds out that his attorney wants a $25,000 retainer, and he estimates that his legal fees through trial will be another $20,000. The poor mortgage broker's loan fee was only $12,000. He can't afford to sue this horrible borrower.
Now if the mortgage broker had used my battle-tested fee agreement, he could sue the borrower in arbitration, in the mortgage broker's home town, and not even employ an attorney. In arbitration, you simply meet in some attorney's conference room, sit around a conference table, and tell your story - much like Small Claims Court. You do NOT need to hire an attorney if you are the plaintiff in arbitration. A total rookie can easily handle his own case. And from the time you file your Demand For Arbitration, you will be able to drag this low-life borrower before an arbitrator in less than 60 days.
Now when you buy my nine-hour video training course, "How to Broker Commercial Loans," for $549, you get this fee agreement and 90-minutes of video training on fee collection as part of the course.
Or you can buy this Fee Collection Course and Fee Agreement separately for just $199. In your entire career as a commercial mortgage broker, you will never make a better investment.
But what if you are a starving mortgage broker? Well, then go out and find a banker that is in the market making commercial loans and trade me that one banker for my Fee Agreement.
I have probably successfully litigated more commercial mortgage broker fee collection cases than any attorney in America, probably several times over. When you call me asking for help some day on a huge fee collection case (I don't take cases, but I'll coach you a little), I predict I won't be able to help you because some "expert" (your attorney) had you make this one little change to my agreement. Argghhh! Invariably that little language change totally screws the poor mortgage broker out of victory. Do not change even one word. Don't say I didn't warn you.
I offer trades like this based on The Honor System. You could easily slip me nonsense information and still get your free fee agreement. Therefore please be sure that you are giving me a bona fide commercial banker. Go to the guy's web site and make sure it says, "So-and-So Bank" and contains the FDIC-insured deposits symbol. You should never find yourself entering your own name. Thanks.
Now the point of this lesson is to tell you guys that CommercialMortgage.com is exploding in size. Our list of hungry commercial lenders just keeps growing and growing. When someone trades me a banker, I immediately add them to CommercialMortgage.com. And we are doing tons of trades.
You can trade us one banker for a regional list of over 750 bankers (and other commercial lenders), and if you trade us three bankers, you can obtain the entire Blackburne List of Commercial Lenders.
You can also trade one banker for the PowerPoint presentation to my wonderful course, How To Market for Commercial Loans. You also just can buy this online course for $199.
I wouldn't fall off my chair in surprise if 5% of all of the practicing commercial mortgage brokers in the country got their start by watching my popular nine-hour video course, How To Broker Commercial Loans. It is a very popular course. The course includes marketing, underwriting, packaging, placement, and fee collection.
But not everyone can afford the $549 cost. If you are a starving mortgage broker, you can get your hands on this wonderful course by just providing me with a list of ten bankers making commercial loans.
There has never been an easier time to become a hard money mortgage broker. The reason why you want to become a hard money lender is that you get to service your own loans. Folks, if you are not working daily to develop your own loan servicing rights, get out of the business. Let me say this again. Never want to service loans? Get out of the commercial loan business. You'll never survive the next recession. The real money in the mortgage business is in loan servicing fees.
And geez, guys, loan servicing is no big deal. You can hire a sub-servicing company to service your loans for just $30 per loan per month. Charge your investors $1,000 per month and pay them $30. My own loan servicing fees are over $1 million per year, whether I close a new loan that entire year or not. Careful, now. I still have to pay salaries out of that, but its easier to survive recessions when you know you're going to get $80,000 on the first of each month. I sell a four-hour video course, How To Find Your Own Private Mortgage Investors, that helps you to get started.
But not everyone can afford the $549 cost. Trade me just ten bankers, and I'll send you the course. Most guys, when they start building up a list of ten bankers to trade me, find that its easy to keep going and give me 20 bankers. This way they get both courses.
Now on to my final point. You should be calling bankers every day anyway. The typical commercial banker turns down a half-dozen commercial loan applications every week. You want those turndowns!! If I was surviving on a shoestring, I would send a funny joke by snail mail to each banker on my list every ten days, and I would include three business cards.