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 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 borrower/client has not provided a
complete due diligence presentation to the underwriter; and/or
-
The application requirements have not been
fulfilled; and/or
-
The application is fundamentally flawed;
and/or
-
The broker is not a loan correspondent for
any institutional investor, hedge fund, insurance company, etc. - they are
just a broker who fires a shotgun blast to see if the deal will go.
These firms tend to rely upon application fees to make a profit and should
be studiously ignored.
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).
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.
Rainmaker Marketing Corporation'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.
|
