Over the years, Glen Weinberg, chief operating officer of Colorado-based Fairview Lending, has worked with a number of brokers who close unusually large volumes of transactions.
Weinberg has studied what sets these stars apart and has developed five tips that can help you close more deals as well.
“Working with lenders is like the dating game,” he says. “First impressions count, and there are a number of steps brokers can take in order to make themselves better partners.”
1. Get organized:
Before picking up the phone, make sure you understand the transaction fully and can explain it in simple terms, covering the property type, how much the borrower needs, and the objective of the financing. As in the dating game, this is the first impression. If the lender is turned off by the broker’s lack of knowledge, the date will end quickly. Professionalism is key in the courtship phase of the relationship.
2. Know the details inside and out:
If the lender’s interest is piqued, you’ll be asked for more detailed information. Make sure you’re ready to provide it immediately and in a clear format, demonstrating you’re in control of the transaction and the borrower is serious. The initial items most private lenders will ask for include:
3. Provide full disclosure: Lenders hate surprises:
- Address and property description
- Current debt on the property
- Objective of the loan (rate and term, cash out, etc.)
- Current leases on the property
- Other pertinent information
- On commercial properties, you’ll need to provide rent rolls, operating statements, environmental reports and more
Be upfront and honest about all aspects of the transaction. Sooner or later, the lender will find out if important information has been withheld; for example, information about a tax lien on the property or the borrower, or about a dispute with a tenant. Err on the side of caution and let the lender know of any possible issues. If items are disclosed upfront, they probably can be taken care of prior to or at closing.
4. Do not shop the deal all over:
Weinberg frequently is copied on emails that have been sent to 20 other lenders as well. These emails go straight to the trash bin.
Lenders need your help in ensuring transactions close smoothly. Originators are the interface with the borrower and need to ensure items are taken care of promptly by the borrower.