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Brianquigley
1643 Posts |
 Posted - 05/08/2008 : 3:54:33 PM
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heheheh
Is it me or does everyone get around 20 unsolicited emails a day from commercial lenders?
I mean, I know it's a tough market, and we need to find our niche, and everyone is making small commercial seem like the next best thing. I'm cool with that, however it seems that 90% of these emails aren't even direct lenders. They are correspondent lenders jacking up the rates and fees. I though residential was bad. It seems that everyone predatory that left residential are finding new homes on the commercial side.
I only say this because I was duped earlier in the week on a super high rate, super high fees, not even knowing that thy werent the direct commercial lender.
When I did more research, I actually found the direct lender,who this guy was corresponding with
Correspondent
2 points higher
1% fee
_____________________________
And they market themselvesas making you think direct.
Im just sayin everyone be careful nowadays. THE BO POST is a great outlet for bad experiences, etc, etc,
Has anyone experienced anything bad on the commercial side? |
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EMScommercial
3637 Posts |
Posted - 05/08/2008 : 4:06:12 PM
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here is what i ask....
point blank...
does the loan close in your name?
will my broker points show up in my company's name on the hud?
if the answer to either or both of these are not 'YES' - then chuck them and move along....
have a nice night.... |
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jlmandl
141 Posts |
Posted - 05/08/2008 : 4:15:04 PM
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| Well to stop this practice or at least slow it down right here how about we all start posting who we know are direct lenders. |
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mtgbeast
13 Posts |
Posted - 05/08/2008 : 4:20:05 PM
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I love getting the emails that say "4% ysp for all commercial properties"
Then you read on- the company is not a licensed lender or broker.
They are "consultants" that will find the best commercial deeal for you.
- at least 2 of those a day. |
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Brianquigley
1643 Posts |
Posted - 05/08/2008 : 4:27:27 PM
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| SO who are the direct commercial lenders on here? |
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cdavis77
58 Posts |
Posted - 05/08/2008 : 4:34:08 PM
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| EMS is correct. The problem is Commercial is so highly fragmented even amoungst the banks (you have portfolio, local and national S & Ls, hedge funds, insurance companies etc) It becomes difficult to effectively place the loans at the right institutions each with their own standards. Residential is much more uniform therefore there is no need for intermediaries in the transaction. The best way to get commercial done, if you are somewhat new or dont have the time to shop forever, is to employ the services of a commercial advisory firm such as EMS or FBF we will both provide similar services. The key is dealing with people who are up front about how their platform works and upfront about the costs. I would pay an extra point on a deal for someone to place and do all the legwork as long as I know that is what their service really is and that is what the cost is. The ultimate goal is to provide your client with a competitive rate and term, to get the origination broker paid, and to close the loan. For example doing a loan with EMS may cost a point more put he can deliver a rate .5% lower through his network. How much does this save your borrower over the first 5 years on say a 1 million dollar deal. Commercial Advisors can provide a valuable service, as long you know up front. Consider this when you buy a plane ticket do you go directly to the airlines websites and search for the flight you need? or do you go to Orbitz or Travelocity to compare the costs across all airlines instantly, thus saving time and giving the ability to find the lowest priced option. The key is finding the right advisory firms to work with. You only need a few. |
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Brianquigley
1643 Posts |
Posted - 05/08/2008 : 4:41:14 PM
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| Exactly. That would be a great tool. |
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tferguson
70 Posts |
Posted - 05/08/2008 : 6:38:06 PM
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| http://www.minvestfinancial.com/ and http://www.ysploans.com/free-loan-forms.php are they direct lenders? |
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KHufford
3081 Posts |
Posted - 05/08/2008 : 8:23:36 PM
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The bottom line is this...
IF YOU DO NOT KNOW WHAT LENDERS TO SEND A COMMERCIAL DEAL TO....YOU SHOULD NOT BE DOING COMMERCIAL ON YOUR OWN. PERIOD.
Thats the hardest part of all finance, work with an expert for a few years who know exactly what sources and niches to do and how to do them, what investors to use and make contacts, then proceed on your own after a few years of this. All these newly turned 'commercial' LO's are SOOOO hung up on who is a DIRECT lender or not, when thats not really what they should be worried about at all...they keep bumping their thread, over and over, asking where a direct lender is....
If you are on here posting commercial scenarios, especially SMALL commercial, I guarantee it never closes. And I dont say that to be rude, this stuff is not easy, you need to become the expert, until then beg someone to take you under their wing and believe me, you will earn more money, close more deals, and they will earn their money by helping and teaching you.
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financeone
606 Posts |
Posted - 05/08/2008 : 9:04:38 PM
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I disagree with your "caps" sentence. Just because I don't know off the top of my head who'll get a small commercial deal that I end up with, does not mean that I should not be doing them period.
Only a person with your experience and caliber should do small commercial loans? Give me a break. I am taking what I get and getting what I take, done. Period.
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mortgagemessiah
6635 Posts |
Posted - 05/08/2008 : 9:10:13 PM
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| These spammers know better than to call me. |
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KHufford
3081 Posts |
Posted - 05/08/2008 : 9:11:14 PM
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quote:
Originally posted by financeone
I disagree with your "caps" sentence. Just because I don't know off the top of my head who'll get a small commercial deal that I end up with, does not mean that I should not be doing them period.
Only a person with your experience and caliber should do small commercial loans? Give me a break. I am taking what I get and getting what I take, done. Period.
I never said I was high 'caliber' and all that...thats not my point, the fact is what I explained is EXACTLY what I DO. And I have a pretty solid grasp and know what I am doing even...thats all. Thats why I work with a dedicated commercial firm (MJM) and not just fly solo...
Its like the guys who ask who does manufactured homes, that dont know FHA...they should be working side by side with an experienced residentail broker for a bit until they get it...thats EXACTLY what I did years ago...
When you dont know EXACTLTY what to do with your deals, you do your clients a disservice. Thats why the industry needs more barrier to entry. When brokers dont know what to do with a deal, the shop it all over the planet sometimes, have it declined a few times before finding the right lender, all the while stringing the client on and on with a bunch of bull and by the time it gets in the right hands the clients are all pissed off and think all brokers are idiots.
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financeone
606 Posts |
Posted - 05/08/2008 : 9:34:17 PM
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quote:
Originally posted by KHufford
quote:
Originally posted by financeone
I disagree with your "caps" sentence. Just because I don't know off the top of my head who'll get a small commercial deal that I end up with, does not mean that I should not be doing them period.
Only a person with your experience and caliber should do small commercial loans? Give me a break. I am taking what I get and getting what I take, done. Period.
I never said I was high 'caliber' and all that...thats not my point, the fact is what I explained is EXACTLY what I DO. And I have a pretty solid grasp and know what I am doing even...thats all. Thats why I work with a dedicated commercial firm (MJM) and not just fly solo...
Its like the guys who ask who does manufactured homes, that dont know FHA...they should be working side by side with an experienced residentail broker for a bit until they get it...thats EXACTLY what I did years ago...
When you dont know EXACTLTY what to do with your deals, you do your clients a disservice. Thats why the industry needs more barrier to entry. When brokers dont know what to do with a deal, the shop it all over the planet sometimes, have it declined a few times before finding the right lender, all the while stringing the client on and on with a bunch of bull and by the time it gets in the right hands the clients are all pissed off and think all brokers are idiots.
That I can appreciate.
I know who to call or e-mail regarding any commercial prospect that comes my way. I am not a "commercial" broker.
Hell, I don't even shop residential loans. Look at a few Lenders, than go.
Just looked like a bold blanket statement that if "I" didn't know exactly where I'd place a small commercial deal that I shouldn't even bother with it/them.
No attack whatsoever. |
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CHUGG
244 Posts |
Posted - 05/08/2008 : 9:34:50 PM
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Khufford,
I completely disagree with you. Especially the statement, "All these newly turned 'commercial' LO's are SOOOO hung up on who is a DIRECT lender or not, when thats not really what they should be worried about at all...they keep bumping their thread, over and over, asking where a direct lender is....". Everyone has got a guy that knows a guy that lends the money. In the end you end up 5 brokers deep until you believe you hit the real deal. But when you ask the 2 aforementioned questions. Does the loan close in your name?
will my broker points show up in my company's name on the hud? Even at this point the answer is still no. And if it is yes. They are usually lying. But! IF you finally do get to someone that is a lender. Here comes the due diligence and commitment fee's. Then if your lucky enough to get the lender that is in the upper 50% of commercial lenders that actually do intend to fund the loan and are not just in the business of keeping up front junk fee's and making you think they actually end up funding the loan because of the believable picture they paint by making you jump through all kinds if hoops because the funding is always gonna be this Friday. But when this Friday comes its gonna be next Friday. 12 years in the business. That's my 2 cents. I could be wrong. |
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KHufford
3081 Posts |
Posted - 05/08/2008 : 9:53:45 PM
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quote:
Originally posted by CHUGG
Khufford,
I completely disagree with you. Especially the statement, "All these newly turned 'commercial' LO's are SOOOO hung up on who is a DIRECT lender or not, when thats not really what they should be worried about at all...they keep bumping their thread, over and over, asking where a direct lender is....". Everyone has got a guy that knows a guy that lends the money. In the end you end up 5 brokers deep until you believe you hit the real deal. But when you ask the 2 aforementioned questions. Does the loan close in your name?
will my broker points show up in my company's name on the hud? Even at this point the answer is still no. And if it is yes. They are usually lying. But! IF you finally do get to someone that is a lender. Here comes the due diligence and commitment fee's. Then if your lucky enough to get the lender that is in the upper 50% of commercial lenders that actually do intend to fund the loan and are not just in the business of keeping up front junk fee's and making you think they actually end up funding the loan because of the believable picture they paint by making you jump through all kinds if hoops because the funding is always gonna be this Friday. But when this Friday comes its gonna be next Friday. 12 years in the business. That's my 2 cents. I could be wrong.
I think I see your point also, however I think you are missing my point.(maybe I am not using the right verbiage)
The main point is that people who are trying to bird dog deals but dont know much about commercial keep their deal collecting dust on thier desk for weeks trying to locate that magic direct lender, when if they partner up/ paper up with a local commercial broker they could pass it off into the right hands much faster. I am all for people who work hard and try to do everything themselves, but there comes a point when you are spinning your wheels, thats all..
I really think BEFORE you tell clients that YES "I do commecial, let me do the deal"...you should already have a your niche lenders lined up on a first name basis from interviewing them and learning the programs.
I studyed every possible thing I could lay my eyes on regarding commercial lending/ lenders for literally a YEAR before I ever solicited a single deal....I would have felt stupid if I tried to do it any other way....just my opinion, but I think its a good one...
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PinnaclePeters
676 Posts |
Posted - 05/09/2008 : 06:08:21 AM
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The truth of the matter is that there are very few actual "direct lenders" in commercial right now.
The markets are not amienable to securitized pools of commercial mortgages right now. These loans can't be sold - there are no buyers. Nobody wants to back-log their warehouse lines with loans that they might be able to sell eventually. We need to feel confident that they can move on the secondary market, and right now, that's not the case.
So, a good number of these "entities" who would normally be classified as a "direct lender" are actually acting as correspondents right now.
That's why (on some programs/property types/loan sizes/LTV's) the loan may close in the end investor's name and not in the name of the "lender". |
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EMScommercial
3637 Posts |
Posted - 05/09/2008 : 08:15:06 AM
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Everyone has had good points.
We tell EVERYONE upfront that we are brokers.... that we have an ever changing database of commercial lending sources (lenders, banks, hedge, pension, private, and most recently we've been set up with venture capital group).... the number of sources changes (adding and removing them all the time - right now at 349.....
Our loans come from resi brokers/lo's who are unsure of the commercial world and we split the broker fees with them when the loan closes (and alot of referrals).....
As long as you know who the loan is closing in and that your full fee will be appearing on the hud.... then your money should be safe....
You have to become a darn detective anymore trying to figure out who's lying and who's telling the truth..... amazing....
Keep up the good work.....
Thanks! |
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ComLender
1036 Posts |
Posted - 05/09/2008 : 08:37:48 AM
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A great thread so far. As a direct lender, it's certainly frustrating to see brokers take a loan to another company that poses as a direct lender. However, usually the deal doesn't work out and they end up coming back. Or if it does fund, they realize they've just paid someone for handing them off to Bayview.
I've funded a number of deals for brokers who would admit that they didn't know the first thing about commercial lending. Some of them turned out to be very good, and "got lucky" you could say, in finding the right lender for a particular scenario. However, I'm all for people learning the ropes first from someone with experience. I think in all avenues that would lead to more successful, seasoned brokers.
Whether finding a lender or a broker, those with little commercial experience are still going to have a tough time figuring out who they can trust. Thorough research and referrals are about the only ways to figure that one out. |
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