Mortgage Brokers - Continued...
Selecting a commercial mortgage broker to fund your commercial real estate
development project is fraught with dangers. If you are seeking a
successful outcome using the commercial mortgage broker route, then make the
best of it. Remember; you are better off with a seasoned commercial
mortgage broker than without them as lenders in today's marketplace don't, by
and large, want to hear from you - they want to hear the presentation coming
from an intermediary or other qualified financial expert like Rainmaker
Underwriting. Here are some of our tips:
Ask for the last 10 deals the broker has completed and funded. If
the broker won't provide the information, then move on to another broker
without further discussion.
Investigate the list. Make sure it isn't a "salted"
list of related companies or worse.
Ask the broker which institutions they have a correspondent agreement
with and which institutions they have a continuing underwriting relationship
with. If they say they don't have one or won't let you see it, you are
probably dealing with the wrong broker.
Some brokers are just connected to more brokers. Every one of
them wants to be paid a point, so you end up with too many points on a deal
that won't get funded because it becomes a ridiculous daisy-chain of more
costs, fees and wasted time.
Some brokers "shot-gun" applications to a multitude of
institutional investors with whom they have no more of a relationship than
you do. Shot-gun blasts should be avoided at all costs, as this
poisons the well and significantly lowers the odds of you getting a
Ask the questions. Listen to the answers. If you aren't sure,
call Rainmaker Underwriting and seek the answers. We can offer you the
support and customized consulting solutions necessary to sort them all out.
do projects fail to get funding approved?
Rainmaker has had extensive
discussions through the years with clients who are seeking funding for
their commercial income-producing property development and construction
program, but have, so far failed to do so. Rainmaker has also had
extensive discussions with intermediaries, investment bankers, lenders,
investors and underwriters to get their side of the story. The
interesting thing is that the same five (5) things seem to come up again
and again that end up leading to a total failure. Are you destined
to fail? Can you afford to take the risk of blowing out even a
single funding source, knowing that source could be the one source you
needed to succeed? What can you do to avoid these terrible
mistakes that always lead to a rejection? Click
here and learn more.