Anthony Gramza

The first route that most investors take is to pick up the phone and call their local lender/s. In some cases they will be told of no interest on the part of the bank, or they will get a "it's possible, or "we can consider your request". Will they be competitive as to rates and terms on the new financing, and the other question that you need to ask yourself is, "what is competitive, and how can I compare one against the other?

A commercial mortgage broker is a professional in the field of commercial real estate financing. In many cases, their experience is both in previous financing and in real estate transactions. They in most cases have received many years of education both in and out of the field. They (based on their longevity) have weathered both the good and difficult times of commercial mortgage financing. More importantly, the commercial mortgage broker is in contact with at least 15 to 20 various type lenders throughout the United States at all times.

A professional commercial mortgage broker will know the needs of not only the client, but the lender as well. A strategy meeting and site inspection is always a must to start the process. Secondly, a complete analysis is made to determine the feasibility of the request. The client request is then reviewed with several lenders, who based on the learned opinion of the broker, will be the most competitive and most likely to have the desire to finance the loan request. In many cases, the lender will not be local, and since the marketplace has changed so dramatically in the past five years, it behooves the client to have a professional mortgage broker working on their behalf.

Much of the business that comes to a commercial mortgage broker is through referrals. As a client, you need to review the credentials of the broker whom will be your agent and spokesperson in the transaction. Once you are in total comfort with the broker, work with them totally in the accumulation of exhibits needed for formal presentation to the lender. Remember, professionals like doing business with other professionals. The commercial mortgage broker is your representative, and will to the best of their ability, obtain for you the best terms and conditions available in the marketplace, based on the type, quality and size of the transaction.
The commercial mortgage broker is also a negotiator. They are fully aware that they will not be remunerated until the commitment is firm, signed and sealed. Furthermore, we go back to the comment made previously, that being the fact that most of the business of the commercial mortgage broker comes from "referrals". Therefore, we work for you the client, we want a satisfied client, and we welcome the referral to a new client. That's are business.

Is the fee worth it? Whatever commission is negotiated between the client and the broker is definitely earned. Experience has shown us that as a professional, the broker may in many cases recommend various options to the client that were never brought to the table before, or were never thought of by the client, their accountant or counsel. The commission paid is for services rendered, and for the majority of cases, the client will get a return of that commission, based on the dollars saved either in reduced interest rates, fees to the lender, or attractive terms which can make the property more attractive to a new investor, if the client wishes to sell, prior to the termination of the committed term.

A commercial mortgage broker is a full time professional who fulfills a need of a client. In many cases they can become the "search and rescue" team for the client. Always remember that when it comes to commercial real estate transactions; let the professional commercial mortgage broker be one of the "first" members of your team. I guarantee that it will be one of the best investments that you will have ever made in your real estate entrepreneurial quest.