I tell a story in my commercial loan brokerage training classes that goes as follows: I get hit by a bus. I'm quickly bleeding out on the street. With my dying breath, I say to my two beloved sons, "Always remember, sons, the most important lesson in all of commercial loan brokerage is this, 'Commercial lenders close loans for their friends.'" Please pay attention to those final words. They are so important that I utter them with my dying breath. "Commercial lenders close loans for their friends."
In other words, its not how good your commercial loan application is, but rather whether or not the commercial loan officer at the bank likes you. Why? Because every commercial loan ever made had at least one black hair. A black hair is a flaw. Maybe the commecial loan didn't cash flow perfectly. Maybe the building was a little old. Maybe the leases were all short term. Every commercial loan application has at least one serious black hair, and whether or not the commercial loan officer at the bank chooses to overlook it depends on whether or not he likes you.
C-Loans.com is a commercial mortgage portal that boasts of 750 participating commercial mortgage lenders; but it also displays a small handful of Proven Brokers. A Proven Broker is a C-Loans lead buyer who has closed at least five commercial loans for us.
I get emails all of the time from commercial loan brokers saying, "C-Loans.com is a stinky site. So-and-so is not a real lender. He's just a broker."
These nay-sayers couldn't be more wrong. First of all, we never represented the broker as a direct lender. He was clearly labeled as a Proven Broker.
Secondly, you will learn over time that most bankers are extremely lazy. They are usually on straight salary. While their small bonus may depend on their personal commercial loan production, most bank commercial loan officers couldn't give a flip whether they closed another commercial loan or not.
And if they are going to close a commercial loan, its not going to be for some stranger. It's going to be for one of their friends, a very competent commercial loan broker who has already underwritten the deal and who knows that this particular commercial loan is a good one. Ideally you are that friendly commercial loan broker; but if you're not, it sure helps to have that friendly commercial loan broker presenting your deal to the bank. Think of him as your advocate, your attorney, or your union representative.
Here's a statistic that will open your eyes. C-Loans.com has around 750 participating banks and other commercial lenders, and the portal has just 40 Proven Brokers. Our Proven Brokers close about 45% of all of the commercial loans closed by C-Loans!
The truth is that our Proven Brokers are some of the best commercial loan closers on earth. We have three different Proven Brokers who have each closed more than 40 different commercial loans for C-Loans.
So what do these Proven Brokers have in common? What are they doing right? What makes them the Best Commercial Loan Closers in the World?
- First of all, they are all very likeable people. Let's face it, some people are grumpy. Some people are wall flowers, who say little and blend in well with the wallpaper. But a few people are gregarious. They are the life of the party. They are just fun to be around. Proven Brokers tend to be these likeable folks.
- They know how to underwrite commercial loans, and they don't waste their banker's time bringing them deals that don't qualify.
- They are good friends with a half-dozen to a dozen bank commercial loan officers, who close 80% of the deals closed by that Proven Broker.
So when you submit a commercial loan to one of the Proven Brokers on C-Loans.com, you are associating in a gregarious salesman with a proven track record of closings and with a stable of a dozen different banker-buddies anxious to close your commercial loan.
Folks, I didn't set out to write a plug for C-Loans when I started this article. The whole point of today's article is that the world's best commercial loan brokers are friends with their bank loan officers. Commercial real estate lenders close loans for their friends.
Don't you wish you were a Proven Broker listed on C-Loans.com? You would get a half-dozen to a dozen good commercial loan applications delivered to your email box every day for free. All you have to do to get listed on C-Loans is to close five commercial loans for us.
To submit a commercial loan using C-Loans:
This next section I personally think of as an intelligence test. Trade one banker for 2,000? Helloooo? If you have to think about this offer for longer than about three seconds, maybe ...
Do you remember that buyer who lied to us (told us she was current when she was 10+ months down on her mortgage payments)? She agreed this week to pay us $5,000 up-front and $1,000 per month for a year. I could have been hard-nosed, but a bird in hand ...
This is the BEST training course I have ever written. The Practice of Commercial Mortgage Brokerage has 67 lessons on how to fix your commercial mortgage brokerage business. This dirt-cheap ($199) audio course is sooooo good that I offer a 100% money-back guarantee of satisfaction - on this magnificent course only. It is my masterpiece.
Do you REALLY feel comfortable underwriting commercial loans?