How to Make Money as a Commercial Loan Broker

[@dwightbennett6195]

Great video. I have worked as a commercial loan broker for 11 years and this is one of the best explanations of the business.

[@Jonathanmillspatrick]

Thanks, Dwight. Its a great profession. Albeit one that I feel the fintechs are starting to disrupt.

[@anthonyw7237]

I've been doing alternative loans and work with private lenders. Not a fan of Merchant Cash Advances but I can do them. We can charge up to 17 percent legally.. I average 3 to 5 percent. I get mostly turn downs from other lenders by referral or simply run ads. Great business. Very lucrative

[@Jonathanmillspatrick]

They are lucrative. MCAs can also be very burdensome on borrowers. I made the business decision to not be involved with them.

[@brunolebrun9476]

Wow just wanted to be one of the few to comment on this and say you’re a Blessing for the world!🌎 As well this is my New Journey which this video helped me understand exactly what to do. Thank you so much Good Sir!!!

[@inspiredbyyou2day698]

Hello Patrick and thanks for the educational video clip. Yes, I am very interested in your trainig course. I will get in your course to learn. Thanks again......Mason

[@parkestanley2436]

Good video, good info, to the point, no fluff, no sales pitch. I Liked and Subscribed

[@Jonathanmillspatrick]

Many thanks.

[@missuniverse8931]

Hi Jonathan, Does TN require a license?

[@csands247]

Great insight and tips to benchmark. Just starting off at a CRE finance and loan firm in LA, focusing in multifam.

[@Jonathanmillspatrick]

Christian- happy to connect and chat about the industry. If you feel like you need some extra training my course would be a good option.

[@yvonbrisbois9922]

Is this ok in Canada ?

[@estrellanava5080]

Great informative video, can yo recommend commercial lenders in CA.

[@Jonathanmillspatrick]

Hi, Estrella. My course comes with an entire database of lenders, including many that lend nationwide. jonathanmillspatrick.gumroad.com/l/commercialloanbrokeriab/

[@ashleywhite3515]

Most lenders want to see 3 years in business, would you recommend focusing on a particular loan program? For Ex: Business Lines of credit or equipment financing ?

[@Jonathanmillspatrick]

Hi, Ashley. There are lenders who will do deals with businesses that have less than 2 years of time in business. However, you are right to think that traditional lenders (banks and credit unions) like to have multiple years. Why? Because lenders are historical. This is a concept I teach in my course (link in video description). As far as loans to focus on, it depends on the type of borrower you attract.

[@madmanmechanic8847]

This is something I have wanted to do . I have the website and my cards done but lack experience and I dont know how to market. My main goal is Hard Money loans for Industrial parks , Strip Malls , Office complexes etc. I need some training that is what I am looking for.

[@Jonathanmillspatrick]

Roger - I have an entire course that walks you through getting started. Including access to my private Slack group where you can ask me questions and network with other students. You can find it at jonathanmillspatrick.gumroad.com/l/commercialloanbrokeriab

[@rahiemhickmon7404]

Hey brother question what about when the lender pays your fee at the title company can you explain this process?

[@Jonathanmillspatrick]

Sure. You get a fee agreement executed at the beginning of the engagement (I include it in my course). The title company cuts you a check at closing or ACH transfers the payment. You deposit it and make money. It's not complicated at all. You pay can come out of loan proceeds, depending on the lender, or out of closing costs.

[@rahiemhickmon7404]

@@Jonathanmillspatrick thankyou jonathan. Hey how can I get in contact with you I’m not a license mortgage broker I only deal with commercial lending and lenders that don’t require a license. But I want to ask for some advice pertaining to get my brokers license.

[@Jonathanmillspatrick]

@@rahiemhickmon7404 [e-mail]

[@raymondcorrales987]

Does the course show how to originate ?

[@Jonathanmillspatrick]

I teach you how to find deals, how I analyze them, how to pick lenders, and more.

[@Remy-dl6nc]

When you do the training with the people do you connect them with the 200 lenders that you are currently working with.

[@JonathanPatrickMills]

You get access to my full database.

[@JonathanPatrickMills]

You get access to my full database.

[@JonathanPatrickMills]

You get access to my full database.

[@Mav0585]

Any idea why this type of career isn’t as popular similar to Real Estate Agent and Insurance agent?

[@Jonathanmillspatrick]

Matthew - thanks for the question. My take is that it is a bit more complex in terms of getting into the business. For real estate agents and insurance agents (I've been both) all you have to do is sit for the license. Commercial lending is super complex subject. More complex in my experience than either of the others. Additionally, most people just don't know that you can make a career of it OUTSIDE of working for a bank.

[@Mav0585]

@@Jonathanmillspatrick how did you figure it out?

[@Jonathanmillspatrick]

I learned by being in banking for over a decade.

[@mariobergnini8897]

Ive been working for a commercial lender just findig deals to fund, but i dont talk tothe banks injust find the deals and get the info and kick it up to my boss who talks to the banks for equipment loans. I want to branch out on my own because theres no communication from him and i end up spending most of my time just trying to keep my people patient. So my question is how do i find and contact the banks my self to get these equipment loans going my self?

[@Jonathanmillspatrick]

Mario - it sounds like you have an opportunity to branch out some. You could go through the effort of building your own lender database, or get access to 50+ through my course. LoanBrokerFormula.com

[@mariobergnini8897]

@@Jonathanmillspatrick Let me ask you, I have a deal I am working with one of my vendors for a piece of equipment. The buyer needed specific equipment and attachments, so the vender (my client) needs to purchase the equipment from a 3rd party and then is having it delivered to their shop to install the attachments before shipping it to the buyer for his upcoming jobs. So buyer was approved but his score isnt great, but he was approved and more then able to cover down payment and the terms, but the lender doesnt want to work with the vender (my client) even though we have never had a problem getting their deals financed in the past. They will finance the vender (3rd party) the equipment is being purchased from, but my client still needs to cover shipping and the customizations. Im very confused by the situation as the lender doesnt believe my client is a legitimate vender despite having the w-9/sellers permit and being in business a few years and having had no problem financing their deals in the past with other lenders. I spoke to the lender and it sounds like their main complaint is that my clients website is down. Have you ever run into an issue like this? I've been working closely with both the buyer and my client on this one deal for over a month and jumped through hoop helping him get some of his credit history issues straightened out and put a ton of work in on this one deal and have cleared one roadblock after another to make this deal happen, and i've provided every piece of info the lender has asked for when it comes to my client vendor and just not sure where to go from here.

[@swirescold2772]

Great video 👍👍👍

[@Jonathanmillspatrick]

Thank you!

[@Hudsonhofkes]

Hi 👋🏼 Do you need a license?

[@Jonathanmillspatrick]

Hi, Jennifer. It's hard for me to keep up with 50 states and their rules. So, I recommend calling your local NMLS office. That said, there are a lot of states where you don't need a license to refer business loans to providers.

[@sandeepthoutireddy5103]

Hi… Is this course enough to understand the basics..! Is the $50 only registration charges.. I mean do I need to pay any other fee..?

[@Jonathanmillspatrick]

You will totally understand the basics. I even used the, today myself with a prospect. It’s $50 all in. No other costs.

[@therealoddballz7114]

Where do you find leads

[@Jonathanmillspatrick]

I actually cover this in the course that I have recently launched and am currently beta testing with a select group. You can register to be notified for when the course is fully available as well as lock in a 20% discount at jonathanmillspatrick.com/commercial-loan-broker-course-pre-reg/

[@joshh9421]

Great Video! I'm interested in the course. Two questions: One selling point of the other courses I've looked into is lenders won't work with inexperienced brokers. So completing their course will bypass the lenders experience requirements and connect you directly with them. Is this true? Another claim is most banks only lend to highly rated, grade 'A', companies. They claim their lenders will finance the B, C, and D companies that can't get loans through regular banks. Is this true? Thank You.

[@Jonathanmillspatrick]

Hey, Josh. You can find the course at jonathanmillspatrick.gumroad.com/l/commercialloanbrokeriab. My sense is that such a requirement is to make sure the lenders aren't having to look at junky deals that brokers send to them. That is why my course walks you through how to vet deals. Also, SOME lenders only have appetites for grade A deals. That is why my database has lenders who are willing to do non-prime deals.

[@joshh9421]

Thanks Johnathan. You definitely seem to be the most upfront and realistic of the various courses I've looked into.

[@Jonathanmillspatrick]

@@joshh9421 That was the intent!

[@TheTalentedco]

Hi, what is the range of upfront fee i should be charging for the pre-underwriting i will be doing for the borrowers?

[@Jonathanmillspatrick]

Eric - it all depends on how deep you go in your underwriting. If you are doing what I call a "down and dirty" where you just quickly figure out a rough debt service coverage ratio then I wouldn't charge anything. If you underwrite the full thing to the specifications of most major financial institutions then I've seen anywhere between $150-$450 per deal + success fee. I hope that helps.

[@brianmetri5322]

Awesome 👌.

[@Jonathanmillspatrick]

Glad you enjoyed the video, Brian. Is this a path you are considering?

[@brianmetri5322]

@@Jonathanmillspatrick yes,

[@Jonathanmillspatrick]

@@brianmetri5322 that's great. If you don't already know how business loans work you might check out my course at gumroad.com/l/businessloanformula/

[@brianmetri5322]

@@Jonathanmillspatrick i will look into it. Thanks 😊

[@zionmortgage3672]

Do you have any commercial lenders that can broker?

[@Jonathanmillspatrick]

Absolutely! My course comes with a lender database that includes many that will take brokered deals. You can join at jonathanmillspatrick.gumroad.com/l/commercialloanbrokeriab/