Private/HML Loan Brokering

[Michael Wyatt]

Would love to chat with a broker - how you got into the biz, how it works, etc.  

I have referred many people to hard money lenders that I have worked with and had a good relationship with.  This was just to be helpful to them and share my good experience.  Only once did I receive a small referral fee.  I haven't really asked or wanted one, but now I am realizing that there may be potential in brokering a deal rather than just referring people to lenders. 

Wondering what this would entail.  

[Nick Belsky]

Quote from @Michael Wyatt:

Would love to chat with a broker - how you got into the biz, how it works, etc.  

I have referred many people to hard money lenders that I have worked with and had a good relationship with.  This was just to be helpful to them and share my good experience.  Only once did I receive a small referral fee.  I haven't really asked or wanted one, but now I am realizing that there may be potential in brokering a deal rather than just referring people to lenders. 

Wondering what this would entail.  

 This is exactly what I did about 4 years ago.  Finding a mentor is key to help understanding the ropes of commercial lending.  No two lenders are the same and all are not playing from the same Fannie/Freddie guidelines that you find with agency and government loans.  Each one is truly unique.  So to echo what a few others have said, you need the following:

1. A lender network.  You can either be a niche or cast a wide net and provide resources for all loan types.  Personally, I stay away from wholesale lenders and focus on syndications, hedge funds, and HNWI Family Offices.  They offer the most flexibility and can get really creative.  I carry a few banks as well, just because, rarely end up submitting a deal to them.  I was fortunate enough to find a few AEs whom I called up at random (Google search to find them) and met some very humble folks who were patient and willing to teach me.  Once I learned more, I was able to apply that knowledge and gain the respect of other AEs at other lenders who would then share.  It is amazing to me now how I teach some of the AEs I work with!

2. Client network.  I am not a large fan of advertising.  Nearly all of my business is word of mouth, referrals, or repeat clients.  BP is the only place I am regularly posting/reading forums!  Residential focuses heavily on cold calling and realtor relationships... blah blah.  I don't like or do that either.  Getting started was tough, for sure, but once I got a few loans under my belt and showed clients that I was not one of those brokers that "throws crap against a wall to see if it will stick", their confidence as well as mine went way up.  Too many "brokers" out there want to make an introduction then get paid for doing nothing.  Stand out and be an example.  Work your files, talk to your AEs/lenders/clients to make sure the piece of the puzzle your client has fits where you are trying to place it.  Ask the hard questions and don't be afraid to tell someone you can't help them.  Sometimes the ask is a unicorn and there's nothing you can do.  You will learn to manage your time wisely and when not to waste it. 

I'd be happy to share some insight with you but at the same time, I worked hard to build my network and vet my lenders.  I don't give them up quite so easily!  Lol!

Cheers!