Are you career-minded?Anthony GramzaAnthony Gramza, mortgage industry, commercial loans
Recently, all of us in the mortgage industry have been reading
articles in national and local newspapers, magazines and trade
journals about the past and current real estate market. In this
case, I refer specifically to the residential side of our industry.
Have we seen the last days of summer, as they refer to the boom
times in real estate and mortgage sales? Has the real estate
marketplace hit its peak? Are we preparing for the "bust" to occur
in the busy-dizzy days of spring/summer/fall sales? What is really
going to happen to this highly feverish real estate marketplace? I
wish I knew all of the answers. Real crystal balls are hard to come
by, but past experience may provide some of the answers.
If you are currently a mortgage broker or broker associate and
have, up to this time, considered yourself successful, you may
wonder why you would want to make any changes to your career path.
You're happy where you are, you're making money, you're getting
calls for mortgage funds, people are still buyingtherefore, as the
old saying goes, why upset the applecart? It's a good question to
continue to ask yourself, but can you provide a truthful answer?
Are you sitting there today thinking it will never end, that people
will continue to buy at the current pace, interest rates will stay
at the current levels and nothing will change in the economy? If
the answer is yes, then I think you need to take off the
blinders.
We have all been fooled by our previous predictions, myself
included. I thought for sure that the market was headed for a
downward trend three years ago, two years ago, and even this past
year. Fortunately, we have all been pleasantly surprised. Interest
rates have stayed at very low levels, consumers have more money to
spend, the soothsayers from the Far East are encouraging buyers to
buy and consumers are taking on heavier debt in their mortgages.
Liquidity and savings are down to some of their lowest levels in
decades. If negative changes do occur in the residential market,
then what do you do?
About four years ago, I wrote an article titled, "A career change
in the wind: Is it for me?" In it, I discussed the advantages of
considering the commercial mortgage marketplace. What I wrote four
or so years ago still holds true today. You can find endless
excuses for why you don't want to enter the commercial arena, but I
guarantee you that most of them don't hold water. There are more
advantages than disadvantages to this side of our industry. As the
old adage goes, if you think you will fail, you will; if you think
you will succeed, you will. What matters is your state of mind.
It all begins with education. There is no mystery to this
business; it's not difficult, there is no special magic, and bottom
line, you can make a handsome living at it. The boundaries are
limitless. The National Association of Mortgage Brokers, through
its educational division, offers several eight-hour courses and a
four-hour course on commercial loan brokering. Each state partner
is provided with course material, and if your state does not have a
qualified instructor, your national association will provide an
approved national instructor to come into your state to teach and
bring to you their expertise both in and out of the field. If these
courses are not currently being offered in your state, ask why.
They are good courses that provide the solid basics to move into
this field, and the cost is minimal. With these courses behind you
and the guidance of a mentor, along with a continuous reinforcement
of "I can do it," you will succeed in commercial mortgage
placement.
Don't listen to all of the war stories. Don't use them as the
excuse for why you can't succeed. Listen to a mentor you trust, let
them guide you along, think "outside the box" sometimes, challenge
when you feel it is appropriate, and after listening, judge for
yourself both the successes as well as the failures. When starting
off, be willing to co-broker the transaction with another broker
whom you feel is qualified to "make the deal happen." Remember,
it's your attitude that will determine whether you win or lose.
Once you have the education behind you, start opening your mouth
and let everyonebrokers as well as the general publicknow that you
can assist in obtaining commercial mortgage financing. Start off
slow, accept the defeats and cherish the successes.
Remember, you are working on behalf of your client, but at the same
time, you have another partner in the deal-the lender. Be truthful
with your lender like you are with your client. Reputation follows
a person, and this world is small. What you do right as well as
wrong will follow you. Get all of the information, present a good
package, work with your lender at the same pace as you do with your
client and provide them with both the good and bad points of the
deal. Lenders are your partners; they need your deals as much as
you need them. Establish a good reputation, and the rest will
come.
Get to know who the lenders are, what products they like over
another, and let them know you are operating on the commercial side
of the industry. Attend as many good seminars and conferences as
you can, make sure you pass out those business cards, and if
nothing else, remember to ask for the deal.
Lastly, be honest with yourself as well as your client. After
you have analyzed the transaction, checked with your lending
source, and arrived at the best terms and conditions, inform your
client. The answers may not always be what the client would like to
hear, but be honest, and don't waste everyone's time with possible
maybes. In this industry it's the bottom line that counts. Have a
great day and much success in the career field of commercial loan
brokering.
Anthony Gramza is president of Rochester, N.Y.-based AMG
Commercial Mortgage Group. He may be reached at (585) 264-9540 or
e-mail
[email protected].
