Well the past two weeks have been real interesting. From Active Rain THREE small business owners have contacted me and from another online networking group TWO have contacted me.
Here is what happened...and I am posting this not to criticize customers but to help future ones better communicate with me! I am thankful that you have considered me as your potential broker-however I do have some guidelines that will are posted on our website at http://www.mybuildingfunds.comdesigned to cut two 3 hours off the preapplication process and save 3 to 4 days off the whole loan process!
1)One customer left two numbers to reach me at. This is great because one number I called said th voicemail was full. The other number-he picked up and there are a whole bunch of things I will be able to do for him!
2)Another customer sent me a fast email and said he had been offered a rate of 6.25% on a 35+ multifamily building and needs an $800,000 plus loan...This potential customer doesn't tell me if this is a 30 or 15 year loan(rates can be different due to this), if its an interest only, full doc or stated, what the credit scores are..but says the credit is good(620 is good but so is 650...and at 620 many commercial banks with the best rates won't lend to you!)...He did leave his cell phone but since he appears to be giving me an extremely low rate(residential jumbo rates are NOT even as low as 6.25 on the fixed rate) I felt like I would be wasting his time and emailed him that if he is getting 6.25 then WHAT ARE YOU WAITING FOR-GO GET THAT BROOKLYN BRIDGE RATE! Why is is a Brooklyn Bridge rate? "Cause with a rate that low you can buy the bridge! ITs a great rate..apparently some commercial lender is giving away their money and DOESN'T UNDERSTAND THE COMMERCIAL MARKET. Bottom Line:If you throw me a lowball rate and expect me to drop my daily obligation to my existing customers and future existing customers to play that kind of game you will receive a kind email from me requiring you fill out our application. I do not quote rates on commercial property without an application! When a new potential customer calls me up it takes about an hour to get the whole picture and that doesn't even include the application..then we must spend more time reviewing bank guidelines that change all the time..last week's guidelines may be gone! We may need to call our bank rep to confirm a bak guideline or if the deal should be submitted at all. So before I spend one to 3 hours shopping for you we must have an application from you..then we know you are not SUPER SHOPPING! A BLOG WILL BE WRITTEN ON THIS TODAY! SUPER SHOPPERS DON'T NEED MY HELP!
3)Another person read my blogs and she is a really nice lady and is getting the paperwork I requested together. Now she didn't call me up and say "Can You Beat My Brooklyn Bridge Rate?" She wants my help, appreciates that she can learn from me (and I can learn from her and all my customers and I do learn from them). Now this customer has me motivated. Yes- brokers are affected by how customers present themselves to us. If you are a serious customer most of this blog doesn't apply to you and you can know that we take every measure to prevent Super-Shoppers from taking time away from your loan process!! I don't feel like she is using me. Super Shoppers use me and use many other banks only to realize they are going to get a rate that everyone else is getting(I will explain this in my Super Shopper BLOG!!!!:)
4)Another man saw me on Active Rain and sent me an email about his building...he didn't tell me his name, and DIDN'T EVEN INCLUDE A PHONE NUMBER!!! First, that comes across as elusive. ITs like saying to me, "CHarles I require you to communicate with me but you don't need my phone numbers and you don't need to know who I am." I sent him 3 emails and once he responded saying he did not receive my prior email. The fourth email came back returned! If he had included his phone number in his email we probably would have talked already and maybe even started something! A full week has gone by and this man may need my help but no phone number really limits my ability to help you! Now this is constructive criticism:In the business world presentation is important and chances are if you are sending emails to banks and brokers you will not get to far. Banks and Brokers have a "Know Your Customer" Tradition. We know your email but we don't know who you are! That makes us less inclined to take you seriously!
5)Another business owner found me through a search engine. He was totally uncooperative and refused to fill out the application. He wanted to know if this whole thing was "feasible". Now I don't have anything from him-no paperwork and after 2 emails politely requesting he fill out our application he didn't. We assume he went somewhere else. It leaves us brokers wondering-why won't you let us take an application? Rate quotes without an application are inaccurate and don't give us the whole picture. I explained to him that you don't want an answer from me-you want an answer from my bank. He thinks that this is like the residential side of lending where inexperienced loan officers just threw teaser and liar rates at consumers just to get them in the door. On the commercial side you can't call up a bank or broker and demand a rate without giving detailed information. Another mistake this man made was as follows:We discussed two types of financing: An Asset based loan and a commercial loan against his building. I told him we would look in to all options after he filled out the application. That is not asking much-but his response was"I am not filling out an application unless I know this is really feasible." Now my response was that we won't know if its feasible until we get an answer from more than one bank! I am not a fly by the night broker that promises you feasibility without a commitment from a bank. He had an emergency situation and I understand his anxiety may have been causing him to be this way-but I won't make promises I can't keep and then wind up being sued for making false promises. His whole financial profile was poor..real poor...think of everything bad you could find on a credit report-his had it! Also customers need to know It is unprofessional on my part to go to my banks without an application-it makes me look like a ROOKIE and it makes me look like I don't know what I am doing. There is a culture/tradition among commercial lenders and any broker knows that you can't call the bank and say "Hey my customer got 6.25% from another bank -can you beat it?" A broker can't call a bank and ask, "Hey before I submit a loan, is this feasible?"
Of course you want to hear "YES its feasible!" But what if its not? What if a title search reveals that you committed title fraud and your prior attorney that you conspired with is being sued by the title company? What if your wife is really your mother and you are in divorce proceedings and conspiring with your mother to cheat your future ex wife out of her rightful ownership of part of the house? What if you said everything is paid on time and you are 6 months behind on property taxes? What if the IRS comes in 3 days before the loan closing and slaps a Gotcha Federal Tax Lien on the property you are refinancing? What if the income you gave us over the phone is completely inaccurate and upon receipt of application we see that the numbers you gave us over the phone are wrong. Suppose I told all these people<"Yes the loan is feasible".....but Charles you said the loan could be done! Lack of cooperation is a warning sign and tells me that you will not respect my advice as well. We don't mind being competitive but not to the point that we don't get any cooperation.
In summary:
1)One contact revealed only his email and know his email had been deactivated. Had he included a phone number I would have called him a week ago. 3 emails were sent, and he responded to only one saying"I didn't see your prior email,"
2)One customer is preparing her paperwork and we had a great detailed phone conference.
3)Another contact claimed he has 6.25% on a commercial loan and ask me to beat that rate. The rate is less than what consumers get for conventional jumbo loans and EVERYONE knows commercial fixed rates are always higher than residential rates. We do not quote rates without an application. Shoppers are looking for the best liar rate quote. Loan officers feel they need to lowball the shopper just to get them in the door. I don't work that way. ITs just like real estate agents that tell sellers their home will sell for a price that is overinflated because sellers want to hear the highest price..The agent that says the house will sell for $350,000 will get the listing over the agent that says the house will sell for $325,000. That is called high-balling. High ball em to get the listing. On the lending side its called low-balling. Does it work-of course-I'm not naive. Just don't assume I work that way.
4)Another contact had a great conversation with me and because he gave me two phone numbers to call I was able to track him down. I'm going to be able to do alot for him.
5)The last contact was uncooperative and tried to get me to promise him the loan by email after my second request that he fill out the application. MANY business owners approach me. The ones that cooperate with me and do what I say take priority over uncooperative contacts. ITs that simple. ITs not personal its a business policy that protects the time we need to spend running our business and helping serious customers!
Future customers reading this will appreciate my upfront feedback and know I am not complaining about business owners reaching out to me for help. This blog allows you to increase your chance of being helped by your Broker-whether it be me or someone else!!!
I'll be back by 10 am to finish this but I have to go run an important errand!!!!!!
This blog is to help consumers see what they can't see!!!! hope this helps you not make the same mistakes some of the people unknowingly do!
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