Residential Got You Down?

Posted by in Brian's Blog, Commercial Real Estate, Tip Of The Week

With more regulations coming, potentially eliminating yield spread altogether, with approvals getting tougher to come by, with loans dragging upwards of 45-60 days, I don’t blame you if you are a little down.  In fact, many LO’s have shared that they only are doing this because it pays the bills and there is nothing else out there.

And although I have coaching programs and a website (askbrianpeart.com) to help residential LO’s, I would be remiss if I did not throw the commercial idea out there.  Do you realize how much different commercial is then residential?  Commercial does not fall under RESPA, HUD does not oversee it.  I closed 5 commercial deals personally last month and on every one, I got a referral fee from the lender that does not get disclosed on the HUD.  You would call it yield spread but in the commercial world it is just called a referral fee.  Referrals are ALLOWED on commercial loans.  Lenders can pay us this fee, I usually make 1 point.  And it is NEVER disclosed on the HUD.  I also usually charge one, so two points is my norm.  Doesn’t sound like much, but in commercial where your average deal size is above $1 Million, 2 points is sweet.

Also, no buy back worries-that was one of the big reasons I got out of residential. For an owner this can singlehandedly put you under.  Not in commercial.

No licensing, no tests.  Enough said on that….

Almost no competition.  Where as every local bank will do residential loans, because they can sell the paper, 70% of them are NOT lending in commercial.  Brokers really don’t know how to work commercial either.  The established pros went down when Lehman went down, there are very few seasoned vets.  No BankRate.com for clients to shop rates either.  It is WIDE open!

If you can learn who is funding, and then just do a few basic things, you can OWN your marketplace.  Our commercial net branch program allows you to have access to the best lenders and training and be part of the biggest company in the industry.   The final numbers are not in, but we may have beaten our very best month EVER in June-topping August 2008 when we were closing tons of No Doc commercial loans with Lehman brothers.  To do it in this market is huge.

And I know, you are thinking, “but it takes so long to get commercial deals closed”.  Not much longer then residential at this point in many cases.  And some loan products we have can close in as little as 2 weeks.  In fact, we just did a powerful webinar last week for my branches highlighting 3 loan products that can close in under 3 weeks!  That webinar was saved and if you join as a net branch this week, you can tap that too.

I am sooooo glad I made the move to full time commercial in 2007, and the opportunity is BETTER right now.  We are established, banks are sidelined, the upside is tremendous.  What are you waiting for?  Call Seth Parr today at 866-355-1244 to explore this opportunity or e-mail him for a package about the program at commercialseth@gmail.com.

Have a great week!

Brian

p.s.  If you are TIRED of the regulations and the grind of residential-why not explore commercial?  My net branch program makes it easy to become a commercial player.  Mike Mangani made over $30,000 in June, the second time this year he eclipsed the $30K a month level.  The Commercial Net Branch program changed his entire situation.  Call Seth today at 866-355-1244 for more info or e-mail him at commercialseth@gmail.com .