Mortgage Brokers, Brokerage Services, Fundings & Financings...
Welcome to the commercial mortgage brokers information page on the Rainmaker Marketing Corporation web server. Here you will find information pertaining to the qualification and selection process for commercial mortgage brokers. Rainmaker Marketing Corporation has received a lot of complaints regarding commercial mortgage brokers and brokerage firms that routinely fail to make a placement for a client. Upon closer inspection, we find that one of the following has occurred:
The last issue is one of the biggest issues impacting the commercial real estate development finance market today. A quick web search and the developer picks the firm with the lowest up-front costs and lets things go at that - much to their future woe!
Brokers who shotgun blast your application all over the web are doing you no big favors. In point of fact, they may be making things worse because nobody wants to work on underwriting a transaction that has been previewed to hundreds or potential lenders, so they set it aside (can it). Not a good outcome.
Your best bet is always to work with a firm that has a formal loan correspondent relationship with a bank, insurance company, hedge fund or whatever. If they say they have a correspondent relationship ask who it is with. You are entitled to know. If they refuse to disclose, tell them you will not work with them because they will not disclose. If they do disclose, then call the entity and talk to the general counsel or chief financial officer of the company. These people would be in the best position to access the data required to validate the relationship.
RMC's rule of thumb is to work with mortgage bankers and/or investment bankers because these firms have ready access to institutions that can fund the kind of loans you are looking to obtain.
Finally, have you considered what might be accomplished if you had more equity in the transaction... more equity as early as the pre-construction phase? It's time you found out what can be done. If your project has a development budget (or acquisition cost, as the case may be) of at least $2.5 million, you need to talk to Rainmaker about how you can dramatically increase your financial investment leverage without creating more risk.