The Tipping Point! tagged: , ,

The Tipping Point!

Posted by in Brian's Blog, Commercial Real Estate

It is like 1995 all over again.  I actually have a chance to do it over!  What a blessing.

You see, in 1995 my residential business was exploding in North Palm Beach, FL.  I was a broker, not an owner and I had about 10% market share.  Business was coming in from multiple revenue streams-many people were getting referred to me 2 and 3 times by their doctor, their Realtor and their best friend, all saying, “call Brian-he is the best”.  I was able to do deals the local banks could not do and I was leveraging that into a flourishing business.  Brokers were becoming a force in residential so I had a double whammy-rising marketplace and rising market share.  In fact, brokers were close to hitting the tipping point in 1995 where they would became a main stream alternative for mortgage clients.  If you wanted a residential loan in 1990-you went to your local bank.  By 1995, the early adopters-the Realtors-were embracing brokers and we were off to the races. By 1997 we hit the tipping point. If you were a broker between 1998 and 2003 then you know how exciting it got.  By 2003, brokers had 70% market share.  Today, banks are successfully getting the business back from brokers but it took government intervention to do it.  Still, THEY are getting business from Brokers not the other way around.

The tipping point is part of a larger law called the Law Of Diffusion of Innovation.  When a product or new idea comes out, the first 2 ½% of it’s acceptance is with the innovators. The next 13 ½% is the early adapters.  The next 34% of it’s acceptance is with the early majority, then the next 34% is the late majority and the final 16% is the laggards.  The laggards are those people who only got cd’s once they could no longer buy LP’s.  It is somewhere between 15 and 18% that the tipping point happens.  If the product is to take off it tips from the few, to majority acceptance.  When an idea’s time has come, you want to be right there, right at the tipping point and ready to ride the wave.  In commercial, the local banks ruled the day until just recently.  Realtors, developers, savvy commercial investors and business owners used banks to get their loans. Brokers have been around for the last few years, but these main line people never saw them as a serious group that they would go to FIRST.  But the recent banking crisis has shut down many banks.  The early adapters have found a source that can get the deals done, they have found the brokers.  Realtors are now sending deals to me first.  Corporations like Firehouse Subs are steering their new candidates to me.  We are almost at the tipping point, it feels just like 1995.  It is busy, it is FUN. 

And this time, I get to ride the wave knowing what is in store.  Knowing where I am going.  It is almost like knowing the future, I have an edge.  And you do too if you take the time and commit to commercial.  But that window is closing.  I think the cycle will be much quicker than it was for residential brokers.  Everything is quicker now with the internet.  Facebook did not exist 5 years ago-WOW!  We will explode to market acceptance much quicker and the cycle will be shorter.  But the tipping point is coming.  I expect it will be sometime early next year when we hit the tipping point and you want to be established when that happens because the upside will be crazy.  It takes 6 months of hard work to get momentum rolling.  So you need to start soon. 

My company is poised to capitalize with proven resources, closing, volume, reputation and size.  Over 300 branches, we are the nation’s largest commercial funding source.  Our training can lop 3 years off your learning curve and truth is, you don’t have 3 years.  You need to jump on this thing now and take advantage soon so you can catch the wave next year.  My net branch is an excellent option for you.  We provide training, support, proven lending sources, and as a net branch, you can leverage our closings to enhance your reputation.  There is no better way to tap the commercial market. 

Last week a guy signed my term sheet for the purchase of a $1.9 million commercial deal in Ohio-a SUPER strong, cash flowing property.  The guy was a seasoned veteran, one of the strongest borrowers I have ever seen with over 30 large commercial properties in his portfolio, over $4 Million liquid on his personal financial statement, a legit player.  Why is this significant?  Because my term sheet has exclusivity meaning he is not shopping anywhere else.  This guy has bought tons of properties, he knows everybody and he is coming to me, and signing exclusively.  When I successfully close this one, it will be the first of many deals including refinances of many of his properties.  But he is using a BROKER, not a bank.  The shift has begun in earnest, the early adapters are using guys like me…the tipping point is quickly approaching.  Don’t miss this boat.  Join me today and let’s ride the wave!

Brian

P.S.  This is the LAST WEEK to join me as a Commercial Capital Net Branch at the discounted price.  On May 1 it goes up $1500! Volume is beginning to spike, closings are piling up and it is really getting exciting.  If residential lending is not getting you where you want to be, or you are struggling to get deals closed in commercial-you may want to consider joining.  One loan closing triples your investment, and no one closes more loans then us.  So give Emily a call today at 866-355-1244 and HURRY, before the price goes up.  Friday is the LAST DAY!