Between showing properties, creating listings, processing agreements, and staying on top of marketing, how much time do you have to help buyers shop for financing? Can you connect buyers to the best lenders for their industry at the snap of a finger? Do you want to spend less time generating leads and more time closing deals? These are questions every real estate broker should be asking. The answer to all of them is partnering with a loan broker.
Financing is key to any commercial real estate deal. Without it, there is no deal. While some super brokers hold both a real estate license and a broker’s license, most do not. If you’re not dual-licensed, partnering with a loan broker is key to closing deals smoothly and quickly. We handle the financing your buyers need to back the deal. Plus, we take the load off your desk. Still not convinced? Here are more ways a loan broker can boost your real estate business.
Contingency Clauses
A financial contingency clause in the real estate agreement protects your buyer from liability if they hit an economic barrier. Having the buyer back out, however, doesn’t do either of you any good and doesn’t endear you to the seller either. All three of you want to close the deal smoothly and a loan broker can facilitate that.
We build our business on forming lender relationships so we know who’s more likely to approve the financing your buyer wants. Many lenders will turn down a loan if they don’t receive a complete application the first time. Some lenders won’t even reveal the reasoning behind a loan denial or follow up to ask for more information. A broker will help your buyer gather all required materials into a competitive application package and secure a pre-approval. This way your buyer can stay protected and is more likely to stick with the deal.
Lenders like to remain open to a range of borrowers, but may only specialize in one area. Loan brokers know which lenders to target for your buyer’s industry and property class. Don’t let buyers waste time shopping around for the perfect lender. Don’t waste your time on bad lenders. We filter out the bad apples and the bad deals, saving you and your buyers time, money, and hassle.
Financing at Every Level
You don’t need a loan broker’s license to know many types of loans exist. Not all lenders, however, offer all loan types. If your buyer isn’t sure which loan category to look for, we can help them assemble a multi-layer loan approach that covers their needs. We can also help borrowers select from a range of financing types prior to packaging. Our broad selection of financing solutions lets you stay flexible with buyer demands.
We have options from senior debt lenders like banks and traditional lenders. This part of the capital stack makes up the majority of the financing. It’s usually the longest-term and lowest-interest part of the package. Our lenders are experienced, reliable, and in it for the long haul. With a deep understanding of the mortgage industry, they’re dependable and transparent.
Mezzanine loans are essentially a bridge between senior debt and equity financing. Mezzanine lenders are often specialized and take on more risk than traditional lenders. Therefore, they are more selective when approving CRE loans. Since most mezzanine loans aren’t secured by collateral, they cost more than loans offered by senior debt lenders. Working with a broker reduces the costs associated with mezzanine financing through exclusive lender deals.
Brokers connect directly with equity investors eager to invest in your buyer’s industry. Equity investors usually want a different view of your buyer’s business than a traditional lender, since they’re focused on growth. We help present your buyer’s deal in the best light to attract investors who will compete for a chance to finance it. Let us put together a clear return profile they can’t resist.
Marketing Support
Buyers looking to purchase real estate are looking for property and financing. So, it makes sense that real estate and loan brokers would have many of the same clients. When our borrowers want to connect with properties in their area, we want to refer them to a real estate broker we know and trust. That could be you!
Lenders commonly use brokers to find investment deals. This relationship allows us to streamline the financing process by facilitating contact with buyers. You can think of our brokerage as the hub where lenders, buyers, and real estate professionals meet. When you help buyers navigate the sale smoothly, they talk, and word of mouth is a powerful marketing tool that generates leads.
- In a nutshell, having a relationship with a loan broker:
- Provides pre-approvals for your buyers
- Ensures a complete application goes to the lender
- Supports your marketing efforts and generates leads
- Offers easy access to flexible financing at any level
- Updates you during the financing process to help you stay on track
- Filters out bad lenders so you and your buyer save time
If you want to make strides with your commercial real estate business, partnering with a loan broker can make it happen. Contact us today about building a referral relationship so that together, we can close more deals faster.