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Before we dive into the commercial loan modification leads I want to take a few minutes and talk about the nature of the commercial deals. They differ from residential deals dramatically. Commercial mortgages are complex financial deals, with many moving parts. The normal residential loan officer usually can’t cut the mustard on a commercial deal. The commercial mortgage community is small. Nobody ever leaves the industry, and the guys that are just breaking into it usually have a pretty good education behind them. The newbies are competing with people who have been in the industry for many years and have millions of dollars of funded deals under their belt. With a contracting market, it’s only natural that the guys with years of experience getting deals funded switch gears and start trying to salvage deals with a commercial loan modification. I’m sayin g this to a certain extent to try and discourage the residential guy from waking up one day thinking there is a world of commercial deals to modify out there. I want to be clear, they are out there but without any experience you’ll get your lunch money taken. The commercial mortgage market is the next level up on the sophistication scale, and the attorneys and commercial brokers that inhabit this space are sharp. Now with that said, let’s talk about the marketing and commercial loan modification leads.
The commercial loan modification lead is materially different than a residential lead. You may have read my other articles discussing the merits of using a credit bureau over public record data to find leads before they hit the county recorder. The commercial loan modification lead is exactly the opposite, as they are pulled from the public record. There is no central reporting agency for commercial mortgages. In many cases, the mortgage or trust deed is funded privately or bundled up in a CMBS deal and is not publicly known until it goes bad.
The method of marketing to the commercial loan modification lead is very different from the residential as well. The first thing we must do is identify our target and decide on the property type. The most common is a multi-family unit or apartment complex, but we can also go a strip malls, industrial developments, trailer parks, et al. The property type will be subject to availability in our marketing area, and we have to remember that the overall amount of commercial data is far less than the residential market so our marketing strategy will be more focused. The contact point on this type of lead will generally be the trustee or attorney that is handling the case. The majority of commercial deals are financed through an entity instead of an individual, and piercing the corporation or LLC to find the point of contact has always been an issue with this type of lead. Fortunately, here is the dirty little secret: In most states the attorney or the trustee is bound by law to present all correspondence to the principal. This means we have a direct point of contact to the people who will be making the decisions. I learned this little secret during my days of buying residential property at trustee sales. In most non-judicial states, the trustee must pass along all correspondence to the principal parties in a foreclosure and it’s possible to make an offer to buy a property through the trustee. Attorneys are bound by their fiduciary duty to do the same. I’ve seen deals that appeared to be dead magically materialize by using the process and lead to a speedy conclusion.
I’m not going to go much deeper into this, as I say on all of my other blogs I want to convey a message that we know what we are doing with this and I’m not going to divulge all of our strategy at finding these deals. I want our paying customers to have the advantage over the rest of world. If you are looking for commercial loan modification leads give me a call. There’s more to discuss and it’s an eye opening conversation.
If you like what you have read here give me a call or drop me an email
Brad Dawson
888 818 3282 x 236
Brad@blackbookdata.com
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