5 Simple Strategies to Become a Rockstar in Commercial Financing

Sure, commercial financing is a great gig.  You get “rockstar” status from industry peers and you make a lot more money.

Fantastic!  Let’s jump right in why don’t we?

Woah horsey! Hit that PAUSE button for a second.

Why?  Let’s take a breather and give me a few seconds to explain.

Whenever I meet a mortgage specialist (or advisor/broker) and tell them about my success in commercial financing and the amazing stuffs that I’ve done, I can see their eyes light up.  Right away, I can sense that that they’re considering giving this “gig” a shot.

These advisors will think that it would be prudent for them to just jump straight in and do it themselves.  They won’t even give any thoughts to paying for training or mentorship.  These people believe that learning by mistake is acceptable.

The sad reality is that somebody will pay the price.  There is a high propensity that costly mistakes would occur at the client’s expense due to the complex nature of commercial financing when combined with inadequate experience.

A little knowledge is a dangerous thing – Albert Einstein

I know that if you’re reading this, you probably don’t want that to happen.  Neither do I.  This is why I am going to share with you a few nuggets that may help you be more prepared and increase your chance of success in the commercial space.  Perhaps good enough to help you become a rockstar in our industry one day…

I believe that if you want to be good at anything you really need to understand the game and the rules of engagement.  Most importantly, you need to know how to be prepared before playing the game.  If you don’t understand this point, try playing baseball without stretching before the game and don’t wear the proper headgear.  Let me know how you feel after the game.

Unlike major league baseball where your chances of hitting a home-run is very small, in commercial financing you can get a steady stream of good hits at every turn.  When you get it right you may even hit a home-run.

The difference between being good in any profession to being great at one is very slim.  Very, very small in fact.  For commercial financing, a lot of it has to do with basic fundamental mindset and simple strategies.

The following are five simple strategies that I’ve adopted from other successful leaders that has helped me achieve great success at my craft.  Use them as your guide and you should experience similar results (disclaimer: my lawyer tells me that your results may vary as everyone is different and brings their own unique skill-set and baggage to the game).

5 Simple Strategies to Become a Rockstar:

  1. Understand what offers the best return for your time.

    • Just like renovating a home, why spend time and money on something that doesn’t give you a good return?  If a new kitchen increases value by three times as much as a new sundeck, why would you invest time and money in a sundeck?  If you’re targeting the oil industry, now is probably not a good time.  If you are, don’t expect a good ROI on your time.

    • Group and categorize certain financing based on level of difficulty and timeframe to give you an idea of which would be best to pursue at any given point in time according to your available schedule. Retail, office, industrial, development properties or multi-family properties are a few main ones.  Simple warehouse can be done in short time like a residential mortgage but financing a townhouse complex development might take much longer.  Complexity and timeline are important variables to consider.  Your next dinner may depend on it.

    • Which type of financing are you familiar with? Do a SWOT analysis.  Find out what your Strengths are, what you are weak at, is there any opportunity between your those 2 lists and consider the challenges of pursuing those opportunities.  Analyzing past performance and brain storming new ideas which may or may not work seems like a waste of time as well.  It may seem counterproductive but jumping into a new arena without having your gears on or assessing your competition would assure you failure and guarantee to waste your valuable time.  If you are intimately familiar with construction from your general contracting years, then you may find that you would be more familiar with the process of that particular type of financing.

  2. Be selective of your target market.  Personal preference is a driving factor for me.  I do what I do not just for the money.  I love what I do because of the people I get to work with.  I only choose to work with those that see my value.  I work with people that are genuine and have a good vibe whenever we meet.  I don’t work on the street.  I own the street.  I have a choice. People see that and can feel it, which adds value.  Working exclusively with clients that I choose to work with allows me to give full attention and commit appropriate time to them.  Would you rather work with a personal trainer 1 on 1 or a trainer that works with large groups?  Exactly!  That is valuable!

  3. Leverage your weakness by becoming a master student.  Learning something that very few people can master is valuable.  Commercial financing is one of those.  Being an effective teacher to teach others this complicated subject in a simple method is the next part that I am tackling.  I am also striving to learn something new each day and make each day count.  My daily goal is to learn something new or gain access that will add value to my network.  Meeting new people that can increase my value to my network works for me.  There are great technology that can help you and most are free or nearly free such as Duolingo.  Muy bien mi amigo!

  4. Don’t be a secret.  Market yourself all the time. 

    • Some people say that they don’t want to push people into “buying” their service.  They don’t want to be pushy.  What that tells me is that you don’t believe what you have to offer is any good. If that is the case then keep it a secret.  Actually, I suggest that you stop doing whatever you are doing.  However, if you truly believe what you offer is awesome and you are passionate about it, it’s not a crime to be expressive about it (if you do it right) and sincere about it, people will buy.  You are there to provide solution to the current injustice!

    • Let everyone you meet know what you can do to help them or their network. Also let them know that you have access to a certain group that can help them if you can’t.

    • If you have a database, reach out to your database.  On top of what you have, add to your database with everyone you meet or at every opportunity.

    • Don’t TELL.  SELL instead.  Create intrigue and fascination by telling your story and how it may apply to them (solve their pains).  Your story should “sell” how your service was able to solve a challenge for your client. People remember stories better than all the “features and benefits” of what you have to offer.

  5. Create an ambassador program (aka gifting or referral program).   Even when you don’t have your first client yet.  Unless you’re not planning to be successful or don’t believe that what you have deserves one.  You really don’t want to know what I think about that!  It’s the old adage, “what’s in it for me?”  Even if people tell you they don’t want anything in return, would they return a thoughtful gift that you sent them?  I doubt it.

    • If you don’t have the capacity to set those up, then at least use websites or service such as Sendoutcards or Guusto.com which can help you.

    • Buy gift cards at Costco, Walmart (or just about any grocery store chain) or local coffee shop (find out if they prefer Starbucks type vs Tim Horton’s).

    • Act as an ambassador for your realtors and create VIP style open house.  This by far is the least expensive.  It gives you added exposure and brownie points to your realtor referral partner.

    • Sponsor door prizes at social functions, sports events or networking events.  This may be inexpensive or costly,  You get to decide.

    • Immediately send a quick thank you note or gift to “condition” people that refer you new business (to continue doing it). Don’t wait until the deal is done.  Guusto.com or EdibleArrangements.com works great for this.   People love instant gratification. Don’t you?  

 So do I.   Would you be kind enough to post a feedback below and click my profile (here) and endorse me for the #Commercial #Financing and related skills? Muchas Gracias!

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