The document outlines key strategies for commercial financing, including identifying potential leads, assessing property value, and preparing necessary documentation for lenders. It emphasizes the importance of building relationships with lenders, understanding client profiles, and addressing potential challenges in loan requests. Additionally, it discusses mentorship and collaboration as vital components for success in the commercial mortgage business.

1. “Sky’s the limit!”

2. *
*New commercial lead contacts?
*New inquiries?
*New deals?
*Pay attention to “hearing” &
“seeing” more opportunities for
commercial business?

3. *
Residential
*Paid 1-2 weeks after
closing
*Rate shoppers
*Lender Finder’s Fee
*98% Swim With Sharks
*Pawns with Lenders
Commercial
*Payday right after
lawyer payout
*What rate shopper?
*Added Service Fees
*2% are Competent
*Everything is
Negotiable

4. 1. Mr NO - Don’t do commercial financing
2. Mr No Money - Refer every deal to the bank
3. Mr Know-It-All - Accepts every deal = Mr No
Time & No Credibility
4. Mr Smart – TEAM (together everyone achieves
more), get a coach or mentor, build a team

5. *Future intentions (timeline?)
*Best use of property currently
*Reasonableness of property
*Details of leases compared to rent rolls
*DCR calculations vs class of financing (1,2 or 3)
*Term & amortization client request?
*Future ETO?
*Lithmus test (yay or nay?)

6. *Resume and background (ALL)
*Industry experience, how to
mitigate lack of?
*Upfront Expectations – FEES
*Needs to Know Basis – Discuss
what to the lender?
*Mortgage application versus
Personal Net Worth (All Assets)

7. * Sales price / Cap-Rate
* Pay attention to age of property – REL
* CMHC Multi-Unit Financing (min $400K+)
* Proof of down payment source upfront
(reliant on sales of other property?)
* Pursue or Cease & Desist?

8. *OTP, PDS, MLS
*Rent rolls / Lease(s)
*Existing Business Financials
(optional)
*Client personal (3 years)
documentations (NOA/T1/T2)
*Appraisal (Required 50%+ LTV)
*Stage 1 Environmental
(optional)
*Residential, Retail or Office
*Light Industrial
*Strata units (can be above)
*Rental or Owner occupied
Pursue or Cease and Desist?

9. *OTP, PDS, MLS
*Rent rolls / Lease(s)
*3 Years Business Financials
*NTR -> Review Engagement
*Standard client personal
documentations (NOA/T1/T2)
*Appraisal (Mandatory)
*Stage 1 Environmental
(Mandatory)
*Medium – Heavy Industrial
*Pub / Liquor store
*Non traditional /non
conforming
*Farms & Agricultural
Pursue or Cease and Desist?

10. *OTP & Approved Lease
*3 Years Financials
*Review Engagement
*Standard client personal
documentations (NOA/T1/T2)
*Business Plan & Proforma
*25-50% Success Rate
*Business with NO building
*Gentleman’s / Drinking Clubs
*Gambling establishments
*Medicinal or Herbal Farm
*Shareholder buyout
*Expansion loan
*Leasing (Equipment/Vehicle)
Pursue or Cease and Desist?

11. *Prepare a detailed recommendation to
the lender (Executive summary)
*Research most receptive lenders
*Collect retainer fee (refundable) or non-
refundable commitment fee
*Broker mandate/agreement signed

12. *Qualify client’s type of required financing –
O/O or rental? Type 1, Type 2 (SBL) or Type
3 (BDC/FC/Private)
*Relationship with lender is critical!
*% Sector on books change month to month
*Pricing and fees varies from 3 managers w/
same lender!

13. *All Indebtedness 1st Mortgage and Assignment of Rents over
the Lands
*Business promissory note (may be required)
*Satisfactory Directors Resolutions and Borrowers Resolutions
passed by the Borrower
*Environmental Indemnity Agreement ( even if clean appraisal)
*General Security Agreement
*Personal Guarantee and Postponement of Claim
*Satisfactory Insurance
*Plus Any other security documentation required by lender or
solicitor

14. 1. Determine structure (Personal/SP/Partners/Corp)
2. Appropriate application (personal/PNW)
3. Request ALL required documents (checklists)
4. Review & scrutinize financial statements
i. Notice to Reader
ii. Review Engagement
iii. Audited Financial Statements
5. Create executive summary
6. Template and email BCC to appropriate lenders for
tendering
7. Client sign broker mandate before disclosing LOI
options

15. 1. Client Profile:
History and experience (resume) of all key applicant(s)
SP or Company structure ownership
Financial history and/or projections
2. Purpose of Loan:
Reason for loan makes sense with client profile?
Property Details: MLS/PDS/Purchase Agreement
Rent rolls / Lease agreements / Financials
3. Loan Request:
DCR calculations /mitigate shortfalls
Requested terms, amortizations
Justifications – why 25 years, VRM, Fix

16. 4. Challenges (on this deal):
Soil contamination
Derogatory items/issue on credit bureau
Offer solutions or suggest remedy
Charts, Pro-Forma, Projections
5. Summary / Recommendation:
Suggest to waive or make exceptions: appraisal/phase1
Client is currently a client at your bank
Competitive situation (client has approach other banks)
Client is a sophisticated investor, high net worth
Client has large investments consider moving over
Justifications for any points that require mitigations
6. Attachments – itemized all attachments

18. 670 & 635 Beacon score
$60K & 0K income / $35K RRSP
Husband & wife owns residence
Property valued $1.3M+
Owes $761K - $3413 mortgage/month
Matures June 2016 @ RBC 2.99%
They also own restaurant (15 years)
Owns property restaurant operates in (personal name)
Property valued $2.725M
Owes $300K – matures June 2017 @ HSBC P+2.25%

19. Client: 64 years old, semi-retired. Sold his primary residence in 2013 to free up
capital to invest in other business and cash flowing properties, has over $100K
savings set aside for this purchase.
Loan Amount Request: $243,750 @ 75% LTV
He has virtually no debt and only has few late payments due to business challenges
he had in his landscaping business in 2013. 2011 late payments were from business
trips oversea.
Property: $325,000 agreed purchase price. Industrial with office and retail front in
good location. Subject property is currently vacant but has potential parties
interested in renting it out after TI's are completed.
Current market rents/gross lease in this strata varies from $1.50 to $1.70 per
square foot. Subject unit is 2434 sq.ft. and should easily debt service. Hold-back
or reserve can be requested until intent to lease becomes full contract. Estimate
rent of $3500 is what client asking from interested parties.
2013 depreciation report is also available.
Challenge: 2013 had no income declared, he lives off of his rental income
previously and landscaping business that he had sold off at end of 2012 or early
2013.
Other than his lack of income from 2013, he is a great potential client for you…

22. Ingredients Required to Receive
What You Ask:
1.Trust
2.Value
3.Likeability
“Knowing others is wisdom,
knowing yourself is enlightment,” Lao Tzu

23. *Convey who’s “best interest” for the client by
“hiring you” rather than go to the bank?
*What difference is there if client walks in himself?
(Back and forth trips – require additional docs etc)
*Sell Benefits – save money (re-use appraisals with
many lenders), save credit “hits”, integrity
*Can you negotiate the rates or fees? Hidden fees?
(ie. I received 3 different quotes from same lender)
*Sell yourself – I save you time & money on lawyers,
property appraisers, environmental appraisers
*Sell access your additional network & 7 days a
week + outside banking hours, advisory team

24. *Has process been explained clearly to
the client(s)?
*Why are the fees charged? Acceptance?
*What is the timeline? Consistent on OTP?
*Who does what?
*When and how?

25. Easy as 3.14159…

26. The Secret to Success isn’t Knowing.
The Secret is DOING!

27. * Find a mentor
* Refer or co-broker to specialized
commercial mortgage broker
* Start small and simple
* Be prepared to learn a lot more
* Be prepared to get paid A LOT more!

28. Mentorship: The 5 Powerful P’s
• Prospect & Partner Presentations
• Persuasive Client Interview
• Precondition Client Buy-In
• Proficient With Papers (Lease,
Financials, Appraisal, Phase 1-3)
• Perfecting Lender Relationship
Enroll in an Ambassador Coaching
program today!