7 Hot Tips to Building Commercial Business
__________________________________________________________________________________
TIP #1: Seek FREE Return On Investment!
You will get a few commercial deals a year if you do nothing if you have any sort of volume as a residential LO.
However, with just a little bit of effort and NO extra money you can get a steady stream of commercial loans. The
key is to leverage what you already do. Place a line in your current residential ads, or a sunburst, that says, “Call
about our special Commercial Loan products!” or “Commercial Loan Specialists”. It costs you nothing extra since
you are already paying for the ad, and you will be surprised at the response. Besides Commercial calls, you will get
more residential loans because you have separated yourself. So few people advertise commercial loans that your
responses go way up when you do. In our all new Top Producer Commercial Training Program, I go over 5 other
FREE or near free ways to increase your commercial loan production!
__________________________________________________________________________________
TIP #2: Market Niche Products
Your basic vanilla commercial loan is fine, (75% LTV, 5 year balloon and 20 year amortization), but you are
competing against banks that are loaning their own money. It is tough to compete against that. However, nonrecourse loans and church loans are tough for the banks to fund. Banks want to have someone sign on the bottom
line as the guarantor. Non-recourse loans have NO ONE signing on as a guarantor-the property stands alone. They
are securitized through Wall Street and local banks can’t match those rates. Likewise with Church loans, most
Pastors do not sign on the bottom line for the church so the banks have trouble with these loans. Marketing these
products where you have much less competition not only amps up your loan volume on these loans-it actually
increases ALL your commercial loans because it peaks the buyers interests. On our all new Top Producer
Commercial Training Program I go over no less then 5 hot products that banks can’t touch and how to qualify
people on them including 100% Commercial Loans for CPA’s and Dr.’s-incredible! You need these in your
arsenal!
__________________________________________________________________________________
TIP #3: Do a Thorough Needs Analysis
To really help a customer in commercial you need to understand what their goals are. You do this by asking
questions. Besides questions about what they are looking to buy and how much money they have available, one of
the best questions to ask is “what type of Return On Investment (ROI) are you looking to earn?” This question
takes you beyond loan officer to being a consultant which is where you want to be. The quicker you can get beyond
being a commodity and take control of the calls with questions like a consultant, the quicker and higher will be your
conversions. In our Top Producer Commercial Training Program I include our exclusive Loan Proposal Summary
Form that includes all the key questions to ask to get to the consultant level quickly and I spend time going over it
so you feel comfortable talking to just about anyone about commercial. This form alone is worth the price of the
course in it’s value to your commercial business!
__________________________________________________________________________________
2295 Henry Clower Blvd.
Suite 200
Snellville, GA 30078
Ph: 770-908-1672
Fax: 770-908-1674
Toll-free: 866-355-1244
TIP #4: Speak the Language
Even with a great form to go by like the Loan Proposal Summary Form, you still need to understand the differences
between commercial and residential, how to qualify a deal, how to determine whether it will even get approved or
not. You need to know the important calculations like Debt Service Coverage Ratios (DSCR) and be able to speak
competently about it. Commercial investors can be astute and you can only fake it so far. Knowing how to talk to
them, what to look for, and how to crunch the numbers is critical to establishing trust. In the Top Producer
Commercial Training Program Tapes I spend nearly 3 hours going over the ABC’s of Commercial Lending
including such important calculations as Debt Service Coverage Ratios, how lenders look at Commercial
Properties, assets, credit etc. I relate it to Residential loans so you can clearly make the jump from Residential to
Commercial. By the time you are done with this session of the training tapes, you will feel like you can talk to
anyone intelligently about Commercial Mortgages and Pre-Qualify them accurately. Armed with that confidence,
your business will soar!
__________________________________________________________________________________
TIP #5: Capitalize on the Rules of Marketing
Not just when marketing commercial loans, but for all your business it behooves you to learn and master the rules
of marketing. Marketing is one of the main forces that can help propel explosive revenue growth and it pays to
master it. For example, one of the rules of marketing is that specific ads out pull generic ads 3 to 1! Put an ad in the
paper or on the radio that you do no income loans and commercial loans and tough credit loans and more is nice.
But you would get 3 times the response using that entire ad to talk about how you are the expert in Commercial
Loans. Or talk only about your no income loans. Even though your entire universe might apply to the generic ad,
most will not respond to a generic ad. But EVERYONE that is looking for a commercial loan, or a no income loan,
etc. will call you off of your specific ad. The universe is smaller, but the response within that universe is so great
your responses will dwarf the generic ad. In the Top Producer Commercial Training Program Tapes I go over the
12 Rules of marketing in depth and how to maximize them. This won’t just work for your commercial marketing
but can be applied to ALL of your marketing to boost your sales.
__________________________________________________________________________________
TIP #6: Never Quote Rates!
Quoting rates should be avoided like the plaque. Not only does it keep you a commodity and hence, limit your
sales. In Commercial it is literally IMPOSSIBLE to do without a full package! For many factors. First, the rate they
get will be determined by the property and the borrower. If Bill Gates and I are going to buy a piece of propertyeven though we both have good credit scores and it is the same piece of property-he will get a lower rate. It is less
risky. You see the banks lend their own money, there is not a DO/DU for FNMA. Likewise, if I go to buy a
property that cash flows at 1.5 Debt Service I will get a better rate then if I buy one that is flowing at 1.2 Debt
Service. In the Top Producer Commercial Training Program Tapes I go over in detail why you don’t quote rates
and exactly how to key off of the rate question so you can smoothly move into consulting them and ultimately, the
Needs Analysis. Once you understand this, and with just a little practice, you should be able to smoothly move
your customer from rate shopper to potential client in minutes! Think of the increased sales and referrals from that!
__________________________________________________________________________________
2295 Henry Clower Blvd.
Suite 200
Snellville, GA 30078
Ph: 770-908-1672
Fax: 770-908-1674
Toll-free: 866-355-1244
TIP #7: Take Good Applications
Hand writing a 1003 and faxing it to a lender works OK for Stated Income products. But for good customers who
want the best rates, who can qualify, and who buy the properties over $1,000,000 where the profits really are, a
handwritten 1003 is a mark of a novice Loan Officer. Lenders will get your loan request and put it at the bottom of
the pile or worse, underwrite it with a bias towards denying it. On the other hand, filling in a good commercial loan
application, having all the documents necessary to approve it (and knowing what those are) and putting it together
neatly screams out that this loan should get approved. Humans do the underwriting on commercial loans, not
computers, and first impressions matter. IF you want to greatly improve your approvals on your commercial loans
then package them correctly, make a great first impression and do a great package. Our new Top Producer
Commercial Training Program not only teaches you what documentation to get, it provides you with Commercial
Training Application, all the forms you need and more. As part of your purchase, you get these forms FREE in
downloadable format so you can put your own logo and name on them and use. Everything you need to get going in
commercial available for a fraction of the price of the commission on one loan.
__________________________________________________________________________________
2295 Henry Clower Blvd.
Suite 200
Snellville, GA 30078
Ph: 770-908-1672
Fax: 770-908-1674
Toll-free: 866-355-1244