A must-watch for everyone who wants to be a commercial mortgage broker or who is one. A simple, easy tool that everyone should have and is easy to get. What do you need in your forms library?

“Hello, this is Jack Miller at Gelt Financial. One of the things that’s critical for any broker, whether you’re a new broker or an experienced broker, is what I call a forms library. You’d be amazed how many people don’t have it. So, let me tell you what I mean. In the form’s library, it’s basically all the forms you need. So, let’s go over what I would start with in a form’s library.
The beauty of this is you can go on the internet, you can go to our website geltfinancial.com, and you can get most of this for free. And you can customize it with your name and your letterhead, all of your material there. But the basics in a form’s library would be your fee agreement with the borrower. I would have two of them – one for just an open fee agreement and two for an exclusive. There are some differences, but you can get samples of those. But that’s critical.
A 1003 or a personal PFS (Personal Financial Statement), I would have that in my form’s library. You can get them pre-filled out as PDFs. It’s easy to have. You’d be amazed at how many brokers call our office and they say, “What’s a PFS? What is it? Where do I get one?” So again, download them, save them to your form’s library. Also, critical is a schedule of real estate owned. Now, on the Schedule of Real Estate Owned, it should have the address of the property, when they bought it, what they paid for it, the value of it, the current mortgage, things of that nature. Also, it’s good to have the; gross income and the net income and the mortgage payment.
I would also have, and again, I wouldn’t confuse it with a Schedule A real estate on a rent roll and one of the rent roll details of the property. You want to have the tenant’s names or the lease terms, the dollar amount they’re paying, things of that nature. More drill down as well as all the income and expenses tied to the property. That way, somebody can look at it and a quick snapshot get an idea of the borrower’s strengths or weaknesses. We often see deals where the borrowers will have a lot more strength that’s presented in the original application.
So that’s those four documents, or five documents, are critical. Then, depending on the type of deal you’re doing, you can add to the documents. So, if you’re doing rehab deals, for example, you want to get a rehab schedule, and again, it would include what the borrower’s buying the property for, the cost of the rehab, the closing costs get in the closing out, how much is going to sell it for. So, gives someone an idea of how much money they’re making on the property and the leverage. For rehabs I would also have a list of the borrower’s past experience. Again, these are little things, but it helps enhance a deal, and it’s important that the lender knows these things. And the more information you know upfront, the better job you’re gonna do for the broker.
Again, depending on the type of deal, if you’re doing a hotel, there’s applications customized for a hotel or for self-storage, for all kinds of things, are customized applications. If you’re gonna get into accounts receivable factoring, customized applications. But I would start with a good form’s library, easy to get, easy to put together. It’s not gonna cost you any money and make these available to your borrowers. Adds the professionalism, and it’ll help you get the deals done.
Anyway, I was thinking about it the other day, believe it or not, and that’s why I wanted to make this YouTube video. Check us out at geltfinancial.com. Like the YouTube, like the video, like our channel, hit the Buzzer the button, whatever it’s called, and you’ll be notified when we post more videos. And call us anytime, we’d love to help you. We’re non-bank, non-conforming lenders of portfolio lenders, we make our own decisions, we’re lending our own money. Give us a call anytime at 561-221-0900 or check us out at geltfinancial.com. Take care and that makes it a great day.”

Category: Mortgage Brokers


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