Commercial Mortgage InsightAnthony M. Gramzacommercial, loan processing
Are you starting off the new millennium with the same goals as
last year, or are you challenging yourself to new frontiers in the
loan brokering industry? Is the residential side of our industry
the name of the game for you as we begin this new millennium, or
are you seeking opportunities that provide new challenges as well
as both mentally and financially handsome rewards?
Commercial loan brokering can provide both. Don't expect it to
all happen overnight. It takes time, the willingness to learn new
terminology and experience the mechanism of calculations, and most
importantly, patience, patience and more patience. Furthermore,
don't let the next guy try to discourage you from getting your feet
wet. I have talked with many brokers who, upon hearing commercial
loan brokering, shudder. Ladies and gentlemen, it's not that
difficult, and since you are already in the industry, many of the
procedures will be old hat to you.
As you begin this phase of our industry, you need to educate
yourself by taking courses in commercial loan brokering, and have
the willingness to move forward in the "on the job training" phase
of your learning experience. Although there are various training
classes offered by real estate organizations including the National
Association of Realtors (NAR), I would recommend that you consider
the "Commercial Loan Brokering" class offered by the National
Association of Mortgage Brokers (NAMB) and its affiliate, the NAMB
Educational Foundation (NAMBEF). This is a full eight-hour,
hands-on training session, and is conducted throughout the various
states by your local chapter. Furthermore, it is offered at various
NAMB national meetings, as well as several of the commercial loan
seminars held throughout the country each year. The course has been
extremely well received, and the accolades have been very
positive.
In the December 1999 issue of The Mortgage Press, you
may have read the "Commercial Mortgage Insight" article by Paul L.
Wilson, my counterpart in Williamsburg, Virginia. If you haven't,
go back and read it. In the article, Paul stressed the need for you
as a broker to know with whom you are dealing, the caliber of the
person or firm, and the best test of all-"have they been successful
in closing transactions?" I have always stressed to brokers just
starting in the commercial side of our industry to work with a
mentor. Get to know the real street facts. Learn from the
commercial loan broker who has been in the trenches. Don't become
concerned with competition. Most good commercial Mortgage Brokers
are willing to share their experiences and certainly welcome new
members to the society. Believe it or not, one feeds on the other.
Furthermore, don't be afraid to co-broker that first or second
transaction. Learn from experience ... half of the pie is better
than none at all.
If you intend to co-broker your transaction, check out your
source or your co-broker partner, just as much as you would check
out your lender. Know that they are experienced, ask them for
referrals, and check them out. If there is any hesitancy, be
cautious. Most good qualified commercial Mortgage Brokers are well
known in this industry, and are more than willing to share their
past successes with you. Have you ever met an introverted broker
personality? Most of us expound on our successes! Be willing to
assist in any way possible to make the deal happen. Discuss
commission or referral splits and get it in writing. If you have
verbally agreed to a commission arrangement, put it in writing. It
makes everybody honest, and very little questions come up later in
the game.
Most commercial Mortgage Brokers use the 20/2 rule. Twenty
transactions for review, with two making the final round. Don't
become discouraged if the first few deals bomb-out. Working with an
experienced commercial Mortgage Broker can help take out the sting,
and will provide the knowledge to help prevent the same mistake
from happening again.
Keep the following verses in safe-keeping, especially when
discouragement knocks at your door:
If you think you'll lose, you're lost
For out in the world we find,
Success begins with a person's will
It's all in the state of mind.
Life's battles don't always go
To the stronger or faster person
But sooner or later, the person who wins
Is the person who thinks they can!
Have a great new millennium, go for the golden ring, take on the
challenge, and make it happen in 2000.
Anthony M. Gramza, President of AMG Commercial Group and
NAMBEF Region I Director, may be reached at (716) 264-9540 or
E-mail:
[email protected].
