By houman Mahboubi
Managing partner
BRC Advisors
Online and Personal
A virtual presence is a must, but it doesn’t replace
meeting face to face
social media has become a virtual
necessity for commercial mortgage brokers and everyone else involved in the
real estate industry. Despite its importance, however, social media should
not replace person-to-person meetings
that often mean the difference between
success and fighting to preserve the
status quo.
Social media is simply a tool — an
important one — but not an exclusive
way for abandoning the tactics that create and will continue to foster relationships between buyers and sellers, and
landlords and tenants. The only way to
build those relationships is by recognizing, and then transcending, the limits of social media.
Commercial mortgage brokers are
encouraged to use social media and to
apply this resource intelligently while
also networking with peers at con-
ferences, events and relaxed social
gatherings. This combination of “new”
and “old” media is far more effective
in generating business than relying on
one tactic to achieve everything.
Effective communication is a dialogue
where feedback — and the right to register disagreement — is essential.
In addition, social media includes everything from blogs to podcasts to publishing short notices on Facebook and
Twitter. The first two — blogs and podcasts — are an excellent way for commercial mortgage brokers to expand on
their knowledge about various subjects.
Consider writing blog posts and broadcasting shows in 15-minute and 30-min-
ute increments. That will allow you to
personalize your outreach to existing contacts and introduce yourself to prospects.
Voice it
The quickest way to establish a presence through social media is to find your
voice, to articulate a set of principles and
repeatedly emphasize the points you
want to raise. Remember, social media is
not a license for blatant self-promotion.
Employ it
These tools provide means to address
topics of importance to the commercial
real estate mortgage market, including
news and industry trends. Before meeting with prospective clients, refer them
to this material, which will set you apart
from the sort of generic copy that can
too easily plague any industry.
Your professional credibility will rise
or fall based on the information you
offer. So, while embracing the power
of social media is a good idea, everything depends on solid facts and honest reporting.
This brings us back to the necessity
of building relationships: If you use social media merely as a way to accumulate “friends” and be the most popular
person within your virtual community,
your effectiveness — and your ability to
act as a trusted resource for your colleagues — will evaporate.
Put another way, people pay attention
to leaders who have something worthwhile to say; the public invests its trust in
individuals who speak with authenticity.
• • •
At its most basic level, real estate trans-
actions depend on trust and personal
integrity. Social media cannot eliminate
this fact, nor should it try to do so. It
must, instead, augment the hard-won
investment we make in each other. •
houman Mahboubi is managing partner at BRC
Advisors. Along with Sam Grayeli, Mahboubi
oversees the Beverly Hills, Calif., office of BRC
Advisors. He focuses on sales, purchases,
management and leasing of commercial real
estate. By uniting tenants and property owners, inspiring colleagues and instilling a real
sense of camaraderie, Mahboubi successfully
completes transactions that underscore the
founding principles of BRC Advisors. Reach
him at hmahboubi@brcadvisors.com.
Low interest rates* ranging from 4.25% to 6.55% ARM (adjustable rate mortgages) (fixed rates* are also available) Qualified property types include – Office, retail and industrial (including condominium) – Mixed use, franchises, restaurants and day care centers – Self storage, laundromat and dry cleaners, spas and barber shops – Health club, funeral home, movie theater and banquet halls – Automotive related: dealers, repair, oil change, brake centers – Grocery stores, convenience stores and markets No lender origination fees or points for qualified borrowers/properties Brokers protected Loan amounts from $300,000 to $4,000,000 (Purchase) Refi to $6,000,000 (SBA 504) Owner occupied and investment real estate considered Conventional and SBA options available up to 90% LTV Nationwide lending program: urban, suburban or cities of 50,000+ No balloon payments and terms range from 20 to 30 years No lock-outs from prepayment Quick closings & flexible underwriting Construction and rehab available owner occupied purchase and refinance 660 minimum FICO purchase and 720 for any Construction Centennial Bank Lending Programs SBA 504 AND CONVENTIONAL FHA/HUD MULTI FAMILY/ASSISTED LIVING LOANS UP TO 83.3% LTV TERMS TO 35-40 YEARS FIXED RATES* LOW 4’s
1.888.407.6111
Contact Keith Kennedy at extension #1 • KKennedy@CentennialBank.com
www.CentennialBank.com
*Rates are subject to change and not locked at application
appraisal, which any lender will require; and
2. loan-to-cost: Typically based on
what the individual is paying for the
property.
Although a lender could lend at a
percentage of either of those numbers,
there are some that will lend on future
value based on a construction loan or
conversion project. For example, the
current value of the building might be
$10 million, but after a borrower invests $5 million more in the property,
that figure is projected to double to
$20 million. Lenders — depending
upon their strategy — may do an initial
loan and then do draws over time. This
allows the borrower to access more
money to complete the work required
for the conversion.
Commercial mortgage brokers also
may encounter borrowers who are
looking for cash-out financing. For example, say a client built a new hotel,
put $10 million of equity into it and had
a $10 million note. If the client believes
that the hotel is worth $20 million and
wants to borrow $15 million to pay back
the note and get $5 million back, that
may be a tough sell. Lenders likely will
want to make sure that borrowers have
skin in the game so there is an incentive to pay loans back.
« DISTRESS continued from page 22
Be prepared
When it comes down to getting the
loan done, the most important factor
is to have your ducks in a row when
the term sheet is signed. Make sure
the borrower has all the required infor-
mation and documents to avoid going
back and forth between the borrower
and the lender.
• • •
Clearly, there are deals to be had in dis-
tressed properties, but not everyone
will succeed in this niche. Ultimately,
it is incumbent upon commercial mort-
gage brokers to do their homework,
learn from experience and match bor-
rowers to lenders in a way that every-
one involved in a transaction comes
away happy. •
