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ers are vetting them to ensure they are worthwhile
business connections. Think of it this way: Just as you
are more likely to work with lenders that make your
life easier, lenders are looking to find brokers who are
both easy to work with and understand the lender's
products and processes.
In return, lenders will often work harder to keep
their best brokers happy and will typically be more
flexible with their clients’ requests. So, what is the key
to standing out in a space that is becoming more competitive each and every day?
The most successful brokers are masters of catering to both borrowers and lenders. The secret is that
once you establish strong relationships with reputable
lenders, they will go out of their way whenever possible to ensure your borrowers are happy.
When initiating a new lender relationship, it really
is easier than it seems to make a good first impression. Simply familiarizing yourself with the lender’s
products and criteria prior to a preliminary phone
call or e-mail can make for a more meaningful conversation. This allows you to know the questions you
want answered going into the conversation, as well
as any potential client hang-ups the lender could
Not only will the lender appreciate that you have, at
the very least, a basic understanding of what they do,
but you will seem more knowledgeable of their niche
and, in their eyes, be easier to work with. From there,
figure out the key information the lender is looking for
early on when vetting a loan scenario and make sure
it is delivered.
This approach doesn’t mean you have to make a full
loan-package submission — just the details a lender
needs in order to make an initial decision. Make sure
you know exactly what information they need for your
client’s file to move forward. This can make all the
difference with time-sensitive scenarios that occur in
private lending in particular.
Some of the best brokers will send an upfront,
comprehensive summary of their client’s deal, for
example. Typically, this includes basic details like the
property address, purchase price and renovation costs;
the borrower’s estimated credit score and experience
level with investing; and the desired loan amount and
the use of proceeds.
This is, by no means, a full loan package, but it may
be all a lender needs to determine if it can proceed
with the loan. This results in the broker receiving faster updates and, ultimately, a preliminary approval that
can be relayed to their client so the origination process keeps moving forward.
Now that you are familiar with a lender’s sweet spot and
are ready to refer deals to them, it’s time to turn your attention to your borrowers. Just as it was important to familiarize yourself with your chosen lenders, it is equally,
if not more important, to familiarize yourself with your
clients’ deals before you bring them to a lender.
You must do your own initial due diligence on your
borrower’s loan scenario so that you can answer basic
questions when discussing it with a lender. It’s not
uncommon for loans to be slowed down — time and
time again — because a broker doesn’t have answers
to initial questions about the borrower.
Think of it this way: Would you ever consider working with a lender that offered to “get back to you
soon,” but couldn’t immediately answer questions
about their interest rates and loan terms? If
you don’t know details of your borrower’s
loan request, it not only slows down
the process because of the increased
back-and-forth communication, but
you also come across as inexperienced to both the lender and
your client. Understand the ins
and outs of your borrower’s
loan scenario and be able to
provide important details that
the lender is looking for.
often work harder
to keep their best
and will typically
be more flexible
with their clients’