tagged: Brian Peart, Commercial Capital, commercial financing, commercial lending, commercial net branch, Commercial Training

Singles and Doubles Win the Day!

Posted by admin in Brian's Blog, Tip Of The Week

A lot of commercial brokers fail to make money in commercial because they just don’t get basic business acumen.  How you run a successful business is you increase cash flow while keeping costs contained.  The surest way to increase cash flow is to increase closings but brokers are always trying to hit the homerun instead of just getting anything closed.

I would much rather close 3 loans a month and make $3,000 a loan then close one loan every 6 months that I make $60,000 on.  Your bills are going to come in every month.  You need revenue to come in every month.  I pay all my bills with the small Firehouse Subs franchise loans, the Self-directed IRA deals, merchant accounts receivables deals,etc.   2 weeks ago we closed 5 Self-directed IRA deals in one week.  These loans are easy to process, I do almost nothing on them, and they close in 3-4 weeks.  They are often smaller loans (one was just $56,000), and smaller payouts, but those 5 deals covered my payroll that week.  The big deals pay down my personal mortgages, the little deals pay my business bills each month.  You just have to get closings rolling.

The key to getting consistent closings is knowing what can fund, and staying aggressive so you build a big pipeline.  You need 10 deals in your pipeline to know for sure that you will be closing 1-3 deals a month.  Don’t try to make 4 points on a deal so you can pay off some bills, you will lose the deal.  Remember, each closing nets you tons of other business.  I closed one Firehouse Subs deal back in April of 2009-small little $250K loan, and now I get referrals direct from corporate and close at least one every month.  $5K here, $5K there, soon you are paying all your bills.  Stay aggressive, don’t rest on your laurels, keep adding loans to your pipeline and don’t overcharge and soon you will have a full pipeline and steady, consistent revenue.

Brian

p.s. Our net branches have so much opportunity that a normal broker on the street will not have.  This Thursday they will have another training session where I will have 3 of these small and quick and easy loan programs highlighted with the lenders that do them.  2 weeks after that, I will be doing a full blown webinar on how to pre-qualify all commercial deals including how to read business tax returns.  Armed with a full arsenal of lending sources and premier training, these branches can own their local marketplaces.  For a FREE information package on this incredible program, e-mail Seth Parr at commercialseth@gmail.com or call us at 866-355-1244.