Tips on how a Commercial Mortgage Broker can make 400k annually
Some tips on how a commercial mortgage broker can earn 400k annually.
“Video Title: Tips on how a Commercial Mortgage Broker can make 400k annually.
Speaker: Jack Miller and Michael Kelman
Transcript:
Jack: Michael, I want to talk about a commercial mortgage broker’s ability to make big money. When I say big money, a couple hundred grand a year. So, how much do you think the average broker charges on points on deals that we’re closing?
Michael: 2-3 points.
Jack: And what’s average deals about 400 Grand.
Michael: I was gonna say yeah.
Jack: Okay, so let’s just stick with 2 points, which is fair. It’s not obscene. Okay, if they charge 2 points on a $400,000 deal, that’s 8 grand. Okay, I believe, and tell me if I’m wrong, that a good broker who hustles can do 1 deal a week. They can make 8 grand a week. Now, to do 1 deal a week, you need a pipeline of 3 or 4 deals a week because a lot of deals die. That’s, you know, people aren’t making videos about deals dying, but the reality is deals die all the time. So, if you want to close 1 deal a week, and 1 deal a week is your goal, and that’s a good goal. It’s not an unattainable goal. It’s a very good. It’s a very, I don’t wanna say modest goal, but it’s a fair medium goal. It’s not a crazy goal. You have to have a pipeline of 3 or 4 or 5 deals a week. So, maybe 20 deals a month in the pipeline and focus on closing one. So, what you need to do is, first of all, I don’t think you need to spend big money on advertising. You can get a ton of referrals.
Michael: Michael, if you’re a broker, where would you go to get referrals?
Michael: So, for me, I like to look at my local area. I mean, I try looking at the local markets that I go to, local advertising, local communities.
Jack: What about, like, in today’s market, and we’re making this in May of 2023, banks are being really tight. So, I would focus on going after bank referrals. Doesn’t cost anything. You can do this, by the way, working from home, make a couple hundred grand, close 1 deal a week, make easy eight grand a week net. Keep your expenses low. You don’t need any expenses. Go from referrals. Banks, attorneys, I’d be working banks, for bank turndowns, attorneys for foreclosure, and divorce cases. And in today’s—
Michael: Foreclosure bail out.
Jack: Foreclosure bail out, we do a ton. This guy does.
Michael: bankruptcy attorneys, we get. I mean, try to find every bankruptcy attorney you know because they’re the ones who have deals. They call us directly, but there’s nothing wrong with you going to that bankruptcy attorney and say, “Hey, I got a private lender that can close quick,” because a lot of times they don’t know us. So, and we love those deals, and we’re able to help and move quickly on those deals. A bankruptcy exit.
Jack: Yeah, if you get a good referral network going, you can get a ton of referrals. Remember, I would start off with the number. You need 20 deals in the pipeline to close 4 or 5 deals. That’s a realistic number. So, figure out how many people you need to speak to. You need to speak to a lot of people, and you need to have hundreds of people referring you deals.
Michael: And every homeowners association, we love lending on the homeowners association.
Jack: Oh, that’s a good one. I forgot about that. I forgot about that. Yeah, yeah, yeah, you’re right.
Michael: Yes, see, so we love that. Everyone knows a homeowners association or a manager of a home association, condo association. They need money. They have to have a certain amount of reserves. There’s buildings everywhere in every state, and that’s a loan that we love to do as well.
Jack: So, if I was a mortgage broker, I’d keep my expenses low and work the referral network, get tons of leads in.
Michael: And look at our website. Look at what we offer and get ideas of loans we’re closing so you know how and what we can do.
Jack: You can make it easy a couple hundred grand a year without killing yourself, right?
Michael: Yes.
Jack: Okay, think of us. Check us out at geltfinancial.com. Remember when your bank says no, we say yes. Like our YouTubes, our TikTok, our Facebook, wherever you’re seeing this thing, and call us at 561-221-0900. Take care and have a good day.”
Category: Mortgage Brokers
Tag: pro tip
