Hard money lending sales
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[{"id": "edwx52g", "text": "I'm still a student so I can't give you all the advice but those are relatively small sized loans. Likely has a lot to do with how much they are willing to pay you. ", "replies": [{"id": "edxk6ov", "text": "You aren\u2019t wrong. I live in DC too and 250,000-5 mill is the size of a relatively small cap ex project. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "edx1jj1", "text": "What\u2019s the company?", "replies": [], "depth": 1}, {"id": "edx8hff", "text": "It sounds like this will be a base + commission job. I have sold hard money and I can tell you that construction loans are a lot of work, but if you minimum loan is $250K, you company will want to make at least a $5000 rip on that loan. You will get a percentage of that $5K. Most likely, if you cold call or self-generate the business you will get a higher split. If they generate the leads they will pay you 10% or maybe more, but at least 10% so $500. Take the job if you are a good salesperson and you can handle the rejection or the deals that fall through and keep moving forward with a good attitude. You will also be getting some fraud customer that you will have to weed out.", "replies": [], "depth": 1}, {"id": "edygyf6", "text": "I do this for a living...what do you want to know?", "replies": [{"id": "edyhhyb", "text": "What do you think is a reasonable base salary for a first year, do you find it to be a good intro to commercial real estate, did you learn underwriting?", "replies": [{"id": "edz96gf", "text": "I don't make any base salary. It is 100% commission. I do mostly fix and flip lending so it doesn't prepare you as much for commercial real estate since your lending in mostly houses but maybe you're doing something different. I'm also a multifamily broker which is also a 100% commission job...that much better teaches you how to underwrite commercial real estate. ", "replies": [{"id": "edznls4", "text": "Interesting. Do you think hard money lending is a good industry to get into? I am looking into brokerage as well. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edzbx3i", "text": "Hard money lenders typically get 4 points, plus 12-15% interest, plus extension fees if the project goes past 9 months. They often take over the property and get way higher fees foreclosing on it. So even on a $250k loan you could easily be talking about $50k in interest going to the lender. So it all depends on how your commission is calculated.", "replies": [{"id": "edzdsva", "text": "Can you explain the points? ", "replies": [{"id": "edzna45", "text": "Points are like paying interest but they are considered earned immediately regardless of the length of the loan. So if I borrow 100k at 2 points and 10% interest I will immediately owe 102k regardless of when I repay. If it takes a year to repay, I would owe $10k in interest on top of the $102k.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ee31gqi", "text": "That compensation is probably a small base, but really it is a commission oriented position.  Hard money was in vogue a few years ago, but the industry has become a bit more crowded and competitive.  If you never did a sales job before, there is a high chance of not succeeding, but you can use that experience to springboard into something else.", "replies": [], "depth": 1}]