Table of Contents
Introduction to the Art of Brokering.....................................................................................................................................................................................................08
What is Brokering?..............................................................................................................................................................................................................................10
Almost Everyone You Deal With Is a Broker.......................................................................................................................................................................................11
How Do I Become a Broker?...............................................................................................................................................................................................................13
Section I: Your Key to the Financing Vault
Chapter 1
Developing Your Brokerage usiness..................................................................................................................................................................................................19
Successful Brokers Are Great Marketers..........................................................................................................................................................................................24
Chapter 2
Let’s Start With the Basics..................................................................................................................................................................................................................27
Deal Flow: The Heart of a Brokering Money Machine.........................................................................................................................................................................27
Qualifying a Lead................................................................................................................................................................................................................................31
Chapter 3
The Numbers and What They Mean....................................................................................................................................................................................................35
Introduction to Financial Analysis.......................................................................................................................................................................................................35
Breaking Down the Numbers..............................................................................................................................................................................................................37
Net Operating Income..........................................................................................................................................................................................................................38
Debt Service Coverage Ratio..............................................................................................................................................................................................................38
Loan to Value......................................................................................................................................................................................................................................39
Capitalization Rate—Cap Rate............................................................................................................................................................................................................39
Chapter 4
Types of Loans and Lenders..............................................................................................................................................................................................................43
Smaller Loans, Older Properties..........................................................................................................................................................................................................44
Commercial (Credit Based Loans).......................................................................................................................................................................................................44
Construction Loans (Project Financing)..............................................................................................................................................................................................44
Information Required to Apply for a Construction Loan......................................................................................................................................................................46
Hard Money Loans..............................................................................................................................................................................................................................52
Documents to Provide to Hard Money Lenders...................................................................................................................................................................................54
Bridge Loans.......................................................................................................................................................................................................................................54
The SBA 504 Program 60-40-10.........................................................................................................................................................................................................56
Chapter 5
Working with Real Estate Appraisals..................................................................................................................................................................................................63
Chapter 6
Multifamily Underwriting Guidelines.....................................................................................................................................................................................................67
Apartment Underwriting Profile...........................................................................................................................................................................................................68
General Guidelines..............................................................................................................................................................................................................................70
Rent Roll Form.....................................................................................................................................................................................................................................73
Chapter 7
How to Analyze Owner-Occupied Properties....................................................................................................................................................................................75
Creating a “First Cut”...........................................................................................................................................................................................................................78
Sample Credit Approval Presentation..................................................................................................................................................................................................80
Chapter 8
Stated Income Stated Asset Programs...............................................................................................................................................................................................89
Alt-A (Stated) Commercial Mortgage Underwriting Profile..................................................................................................................................................................90
Initiating Your Commercial Loan Process............................................................................................................................................................................................93
Express Multifamily Stated Guidelines.................................................................................................................................................................................................93
Stated Multifamily Guidelines...............................................................................................................................................................................................................94
Documentation Checklist for Stated Basis Loans...............................................................................................................................................................................96
Chapter 9
Common Practices for Underwriting Commercial Properties...............................................................................................................................................................99
Documentation Checklist for Full Documentation Loans...................................................................................................................................................................104
Chapter 10
Office Properties Underwriting Guidelines.......................................................................................................................................................................................107
Underwriting Profile..........................................................................................................................................................................................................................107
General Guidelines............................................................................................................................................................................................................................110
Chapter 11
Retail Underwriting Guidelines..........................................................................................................................................................................................................113
Underwriting Profile..........................................................................................................................................................................................................................113
General Guidelines............................................................................................................................................................................................................................115
Chapter 12
Industrial Underwriting Guidelines....................................................................................................................................................................................................117
Underwriting Profile..........................................................................................................................................................................................................................117
General Guidelines............................................................................................................................................................................................................................117
Chapter 13
Hotel/Motel Underwriting Guidelines.................................................................................................................................................................................................119
Underwriting Profile..........................................................................................................................................................................................................................119
General Guidelines...........................................................................................................................................................................................................................121
Special Guidelines............................................................................................................................................................................................................................122
Major Lender Guidelines...................................................................................................................................................................................................................124
Chapter 14
Self-Storage Properties Underwriting Guidelines.............................................................................................................................................................................127
The Role of Stabilized Income in the Cap Rate.................................................................................................................................................................................127
Underwriting Profile..........................................................................................................................................................................................................................128
General Guidelines...........................................................................................................................................................................................................................128
Chapter 15
Healthcare Underwriting Guidelines.................................................................................................................................................................................................131
Underwriting Profile..........................................................................................................................................................................................................................131
General Guidelines............................................................................................................................................................................................................................131
Chapter 16
Mobile Home Park Properties Underwriting Guidelines.....................................................................................................................................................................135
Underwriting Profile..........................................................................................................................................................................................................................135
General Guidelines............................................................................................................................................................................................................................135
Section II: Marketing for Million$........................................................................................................................................................................................................139
Chapter 17
The Marketing Process.....................................................................................................................................................................................................................141
Developing a Marketing Website.......................................................................................................................................................................................................142
Chapter 18
Post Card and E-mail Marketing........................................................................................................................................................................................................149
Why Post Cards Are Hard-Working Marketing Tools........................................................................................................................................................................149
E-mail Marketing................................................................................................................................................................................................................................153
Chapter 19
Marketing with a Tele-Selling Campaign............................................................................................................................................................................................157
Prospecting & Lead Generation........................................................................................................................................................................................................157
Telemarketing and Cold Calling..........................................................................................................................................................................................................159
23 Successful Techniques and Strategies.......................................................................................................................................................................................160
Chapter 20
Seminars and Other Creative Marketing Techniques........................................................................................................................................................................165
The Chocolate Jar Marketing.............................................................................................................................................................................................................166
Chapter 21
Asking for the Sale...........................................................................................................................................................................................................................169
Overcoming the Maladies..................................................................................................................................................................................................................171
Chapter 22
Increase Your Name Recognition with Publicity and Advertising.....................................................................................................................................................173
Chapter 23
10 Steps to Ensure Your Success...................................................................................................................................................................................................177
Section III: Form & Letter Templates for use in Commercial Mortgage Brokering
 
Appendix A: Your Broker Agreement...............................................................................................................................................................................................182
Appendix B: Marketing Letters..........................................................................................................................................................................................................186
Sample Letter: Property Owner........................................................................................................................................................................................................186
Sample Letter: Realtor.......................................................................................................................................................................................................................186
Sample Letter: Financial Advisor......................................................................................................................................................................................................187
Sample Advertisement......................................................................................................................................................................................................................188
Additional Letters..............................................................................................................................................................................................................................188
Conclusion.........................................................................................................................................................................................................................................191
About the Author...............................................................................................................................................................................................................................192

 

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