Commercial Financing Broker School & Training
When looking to explore your options in the world of finance, one of the first things you should do is research. This guide will show you how to choose the program that best fits your goals and budget. There are basically three types of broker schools; the first is in house commercial business loan broker training, the second is commercial mortgage broker training and finally, online or take home courses.
In house commercial business loan broker training programs will allow you to offer loans to businesses in a wide array of niches. The financial products at your disposal will range widely from training to training, which we will explore later. The second type of training will be for commercial mortgages. Commercial mortgage broker training is highly specialized lending for commercial real estate and projects. Some schools will offer both business loan and mortgage training. The final type of broker school would be pre-packaged online or take home courses. We do not recommend the at home classes, but they do have their benefits and we will explore every one. Also if you haven’t already take the time out to learn how to buy a business from serial business buyers. It doesn’t have to be a franchise to be a business. Keep reading and learn more about this exciting opportunity.
Business Loan Broker Training (in house)
In house broker training is the way to go. Every training agency in the industry will certainly have their own value proposition and set of requirements, so make sure you do your research. There are quite a few videos on YouTube and around the web of past clients who have taken the trainings and elaborated on their thoughts about each program.
Typically, in house training will consist of general knowledge regarding commercial loans. Many programs will enable you to do loans from $5,000 to hundreds of millions of dollars in all areas of credit and situations. The typical commissions for a trained broker can range from 1% of to 15%. Be prepared for an intensive program to enter the lucrative world of commercial finance. Graduates will typically leave the training with all the tools they need to bring in a six figure income their first year.
REMEMBER: You get out what you put in. Don’t expect to sit back and watch the money roll in at first. Be prepared to work hard and grind it out.
It’s up to you if you want to work full or part time, but in house programs will usually introduce you to a wide range of banks and set you up with connections that can open multiple streams of income.
Time & Financial Investment
A quality training program will probably have you in house for anywhere from 3 – 10 days and some will train for 10 hours a day. Be prepared to absorb as much as you can during this period of time. The financial investment is anywhere from $20,000 to $50,000. Don’t let the price shy you away though, if you want to make money you need to spend money. It’s an investment in your future.
Commercial Mortgage Broker School
In an effort to become a commercial loan officer you will need to attend training and in most states you will have to meet licensing requirements. Generally every program will have a similar set of core skills and then their own individual twist that makes their program unique. We suggest sticking with a program that has a solid history and multiple years in business.
There is a huge amount of money to be made in commercial mortgages. When you decide to specialize in such a niche financial product you need to get good at four things:
- Building your lender network
- Screening Applications
Marketing is an extremely important part of your overall training. What good is a license and a title if you don’t have anyone calling you? It’s worthless. You will want to pick a training program that gives you the tools for marketing success.
Sales is the second large component of your training. The company you choose to do training through should provide you with basic sales skills and even advanced training so that when you do get the phone ringing, you close the sale.
Building your lender network is more of a learn as you go. Building connections and networking in business is crucial to success. A quality program will set you up with a decent sized lender network to start and then hand you the keys to find your own way after that.
The ability to screen applications well is the most important part of your new title as a commercial loan officer. You will need to get good at taking a quick look at someones financial application and documentation and then making the best decision on which lender fits them. Your training program should provide you with the basic tips and tricks to getting people into the right financial products so that you are not wasting your time trying to work deals that are simply not fundable. Let’s face it, 50% of loan applicants are just not going to get done. For one reason or another you will certainly see deals fall through. So, don’t marry a deal- just get it done the best you can and then move on to the next.
Time & Financial Investment
Be prepared to put in anywhere from 1 week to 6 weeks in training. There are programs out there that will take less time and energy, but as the old saying goes, “you get what you pay for.” Don’t be cheap when choosing the correct course. Make an informed decision; compare and contrast the pro’s and con’s of every program.
The financial investment can range anywhere from a few hundred dollars for a low end school to a couple thousand for a solid program. You can also look to the business loan broker training which will sometimes combine both commercial mortgage lending and business loans, offering you a wide array of ways to generate income.
Take Home or Online Broker Trainings
Take home and online broker trainings have their place in the world but they are not as effective as an in house program. They are convenient and affordable for most, that’s why people tend to purchase the at home courses. If you want training that is high quality and offers you interaction with people in the industry, then online courses will not be the training you want.
Every program online will differ like night and day. Some will be scams and some will be genuine programs that provide value to the students. There are a couple main things you want to look at when you are trying to decide which program to get. They are:
- Quality of information
- Lending Network
The quality of information within the course is self explanatory. The courses content should be comprehensive and even contain some kind of frequently asked questions area as well. If possible, choose a program that has real life telephone or face to face support so that when you run into issues you can call an experienced professional.
Your lending network is the same thing with brick and mortar training. You need to choose a program that, at a bare minimum, connects you with a few banks and lending institutions. If you cannot find a program with such attributes than you may even want to reevaluate your situation and see if in house training is a better option for you.
Time & Financial Investment
Your investment of time will range widely from program to program so you really can’t pinpoint that down to any set period of hours. I would say as a good rule of thumb look for a program with 50+ hours of training included. That would be the bare minimum.
The financial investment is what is attractive to most people looking to start their own brokerage. Online study courses and trainings will generally be far cheaper than an in house training, for obvious reasons. Look to pay anywhere from a hundred bucks to a couple thousand. Really dig in and do research on the product- try Googling the name of the training program and find some reviews that don’t look “company generated”. Your best bet would be looking at a consumer review site.
In house broker training, commercial mortgages only or online courses?
Which one is best for you will be completely up to you and your goals. Some people will go cheap and do the online course and some will cut to the chase and do the in house training. Whichever you decide to do, you should make sure you are well informed and know what to expect from the program. If the salesman on the other end of the line is telling you your life is going to be rainbows and cotton candy; buyer beware. If they are realistic and give you honest answers with average incomes than you can pretty much expect the program to be honest. Don’t forget, this is your life and you are trying to find the best possible education that can produce multiple streams of income for yourself and your family. Take it seriously and make an informed decision.