What are the absolute basics, general summary of a commercial mortgage broker's day to day?
What goes into being a commercial mortgage broker? The day to day, expected income, things to know. Anything you can share about it would be appreciated.
[{"id": "dpgny7z", "text": "Prospect, cold call, follow up, cold call", "replies": [{"id": "dpgu9ni", "text": "Pretty much. Depends on if you're actually working for a lender or a \"broker\" that can use multiple lenders for financing. Either way, it's a sales job where you will spend all your time working for meetings to facilitate lending people money. That means building relationships, putting together quotes, and COLD CALLING. These are typically heavily weighted commission jobs where you make no salary, or an extremely low base salary and are compensated by what you sell. Also, be aware there is a ramp up period, so you will likely not close a deal where you earn commission in the first 6 -\n 12 months starting out. That's a lot of downside. The upside is you are your own business, and can make a ton of money if you work hard. ", "replies": [{"id": "dpioybk", "text": "On average, would you say commission will be .50-1 basis points of loan amount? ", "replies": [], "depth": 3}, {"id": "dpj0657", "text": "From what I understand it is a nationwide broker. Meaning they have a network of lenders. ", "replies": [{"id": "dpj074i", "text": "No base at all. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "dpmreye", "text": "If you don't mind me asking, what is your general cold calling tips to get a successful lead? ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dpgwuyp", "text": "Sorry for lack of formatting (on mobile). NYC CRE mortgage broker here. Days are split between: originating new business (cold calling, meetings, client lunch/dinners); tying up business that you already brought in (negotiating quotes with lenders, presenting them to the borrower); closing deals that are tied up (helping borrower with application process, working with lender/appraiser/env engineer, making sure attorneys are doing their jobs); networking (industry events); and if you are at a boutique firm, also maintaining the lender relationships.\nAs far as income potential, it will vary wildly. I've seen people struggle to make $50-75k, and I've seen people get significant deals right off the bat and make $200-300k right away. Bottom line is, if you work hard you can make a lot of money, but be prepared to make nothing for the first 9-12 months, and always make sure to squirrel away about 6 months of living expenses, as everyone hits dry spells, it's just the nature of the business.", "replies": [{"id": "dph37z1", "text": "Ok thank you for this. I am in Dallas which is one of the reasons I am even looking into this. The state of Texas simply seems like a great place to be in this industry. I appreciate your help. Currently in solar panel sales, and I am looking for something a touch more steady. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dpitypi", "text": "That seems about right, but it depends on the market and asset class. I believe commercial quotas are around 50-80m. That's a decent year and you get paid for your hard work. There is also a lot of other expenses you deal with that comes out of pocket (no 401k match, out of pocket health insurance, commission splits,etc.)", "replies": [{"id": "dpizzb8", "text": "Commercial quotas? ", "replies": [{"id": "dpjulrj", "text": "I meant commercial as in \"non-residential\" loans, and quotas as the amount of loans completed for the year. Even though you're not on a base, your sales manager will have expectations on how much you should be lending. They act as if making. I money isn't incentive enough. As I said, all markets are different so I'd recommend getting a cup of coffee with someone at a different firm, and asking them about your day to day. A Mortgage Broker's job is to have a ton of meeting so try to grab 30 mins with them and get answers to all the specific questions. Also, don't be deterred by their answers. They'll likely mention it's hard, and they didn't make a dime their first year. The best follow up question for them is if it's so hard why are they still doing it. It can be stressful, but I know a lot of guys that love it. ", "replies": [{"id": "dpjv3qi", "text": "Yes that is my understanding as well. I know of someone on the residential side who works a TON, but loves what he does and lives in one of the nicest parts of town. I like the commercial arena cause it's \"bigger fish\". Do you know of any get started sites or books on this industry?", "replies": [{"id": "dpk7ptp", "text": "Unfortunately, I don't. Don't let that slow you down. You don't need to know the history of commercial lending and everything involved to be good at it. The people I find best at it are gregarious in nature and like to get to know people. What you do need to know is where rates are, where they seem to be going, and why. That's your value-add and how you give prospects a reason to even pick up your call. Owners will want to bullshit about rates. They all already have \"their guy\" so you'll nee to build rapport with the goal of getting them a few quotes. If you can beat \"their guy\" you can become their \"new guy\". I'd also craft a response as to why brokers are better than in house lenders. Something about how you can shop multiple sources for the best rate. Also, they'll think they're paying \"extra\" for you so mention how origination fees are what lenders use to pay inhouse employees, so your cost is priced into your competitors fees, they pay it either way, so why not be able to shop multiple sources. ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dpo9kuc", "text": "Imitate their talking speed and get to the point quickly. I\u2019m from NYC so to people I speak with on the NE I talk super fast; on the other hand, people from Kentucky you need to talk much slower.  ", "replies": [{"id": "dpoja4o", "text": "I will keep this in mind considering I am working in Dallas.", "replies": [], "depth": 2}], "depth": 1}]