Wednesday, June 12, 2013

Learn How To Buy Commercial Properties The Easy Way - Become A Commercial Mortgage Broker!

What is the easiest way to learn how to buy commercial properties? By becoming a Commercial Mortgage Broker! Most people ask me what should I do, so that I can buy my first commercial property? It seems so simple to me...learn the rules of the game! So you ask, what benefit do I gain by becoming a commercial mortgage broker? Benefit #1 - Develop Relationships With Lenders Unless you have a ton of money, you will have to borrow money in order to buy commercial properties. Well what if you have a good working relationship with a lender? Do you think you will have a better chance of getting your loan approved? Yes! And not because you're breaking some rule or getting special treatment. It is because you would have worked with that lender. You will know exactly what property types they will lend on and at what terms. You will know what criteria they are looking for and what will "kill a deal". Because your clients will have different needs, you will need to know different programs. For instance, I have a lender that specializes in loans for apartments. I know that this lender has a program that will loan 90% LTV for borrowers with good credit on loan amounts less than $1,000,000. This same program allows unlimited cash out apartment refinances. Now I learned about this program to help a client obtain a Dallas apartment building. But do you think I could use this same program for my personal acquisitions? Do you think I have a good idea of the time involved in closing a loan with this particular lender? Also, as a result of working with borrowers, you will learn what properties you DON'T want to own! You are learning through the school of hard knocks but you aren't the one getting knocked! Benefit #2 - Develop Relationships With Other Professionals Just imagine if you have contacts in the commercial appraisal industry, contacts with commercial realtors and contacts with commercial property managers. Do you think this will help or hurt you when acquiring your own portfolio? If you don't know the answer, then let me tell you, that it will help you tremendously. It helps you learn how to judge the good ones from the bad ones. And these relationships are not restricted to your home town! You will develop a network across the country. The real "players" in the game of commercial property ownership (think Donald Trump) own properties across the U.S. Why? Because you go where the income property is...not waiting for the property to come to your home town. Benefit #3 - Earn The Money To Buy Commercial Properties Of course, nobody works for free. If you're providing a valuable service to clients by getting the best financing for their projects, then you deserve a fee. Commercial Mortgage Brokers can earn anywhere from 0.5 points to 3 points. Your fee is based on the complexity of the loan and the level of services you are providing. As an example, let's say you are helping a client obtain a loan for $1,000,000 for a 20 unit Atlanta apartment building. With your help, your client is able to get 90% financing. Your fee for this service is 2 points. At closing, you will be paid $20,000. Not bad. Now let's raise the bar. You have a client that wants to purchase a Phoenix shopping center for $10,000,000. He has poor credit but you're able to overcome this with your lender. Your fee for your services is 2 points. At closing, you will be paid $200,000! That is a nice payday! Now you're able to build your own portfolio of commercial properties with your earnings! Partner Us Reviews of Car Insurance Companies Auto Owners Insurance Company payday loans