Real-Life Communication
Mortgage brokers have to be excellent communicators. They must know
how to read financial statements and mortgage quotes. They must know how to
explain complex calculations. More importantly, they have to relate to people
from all backgrounds.
"The real key in my line of work is people skills,
and how you get along with the borrowers and lenders," says Don Taylor. "Pretty
much everybody offers the same services and the same rates. But what separates
you from everybody else are personal relationships."
Negotiation skills
are also important, Taylor says. "If you are a good poker player, you can
be a good mortgage broker."
You are a commercial broker. A property
owner -- let's call him Mark -- approaches you for a $1 million mortgage.
He wants to buy a large apartment with 164 suites. After you look over his
proposal and his business records and talk to your lenders, you reach the
conclusion that he cannot get the loan he wants.
But you can offer
him a loan of $850,000. He would have 20 years to pay it down. The mortgage
would be "closed" for the first five years at 7.75 percent. However, he must
meet all conditions within 45 days, or the deal is off. Here are the conditions
he must meet:
- Get an official appraisal of the building's value
- Get the building inspected
- Get an environmental assessment
What do you say to Mark?