I was curious if there are any independent (i.e. one-man shop) commercial mortgage brokers? My boss spent 15 years working at a "big heavy" commercial mortgage brokerage, and on our last transaction where we invested $2 million or so into a self-storage deal he took a $20,000 fee for calling around his old contacts at lenders and negotiating the terms of the mortgage on behalf of the GP and LPs. Does that profession actually exist or is that kind of a freak thing my boss did?
A Google search provided little information since it keeps bringing up single-family residential.
Yes, I know a ton of people that run 1 to 2 man shops. It makes alot of sense. If your a producer,you can leave a take a 100% spit. This is very common in middle market and small balance.I know a 2 man team that did well over 500 million in deal last year
Wow. Ya know, ya learn something new every single day.
Do these independent brokers usually work at a bigger shop and then venture out on their own? For yourself or others looking to enter the business, where did you start? How did you meet lenders and those looking to place capital? Where did your first clients come from? What were the difficulties in getting things up and running? Thank you!
Find the mortgagor first, then the mortgagee.
Anecdotally, these guys are getting squeezed out by more sophisticated shops that also service the loans on behalf of the investors.
Been a loan broker since 1996. There is much more to it than to call around, but yes that's a component of loan brokerage. Knowing where to place deals, especially if there is hair on it can pay very well.
Getting A-/B+ deals A rates can make you rich.
It's not a 1-2 man shop, but our firm currently has 6 brokers (just added two within the past year so historically we've only had four). Been around since the 90's where they started with 2. Have done over $1B in deals the last few years.
Anyone know if Joe Joseph is still in the game? This guy was a one man shop that was pretty much a corespondent broker for Credit Suisse. I havnt done a CMBS deal since 2015 so I'm not sure if he's still around.
But anyways that's a good example of someone who had a relationship and ditched his bigger firm to work solo.
GS Wilcox in NJ is a good example of a very small shop that does a lot of business.
Mortgage brokerage seems to have more successful solo guys that IS.
Edit: ahh shit, I got tricked into replying to an old thread
There are many shops like these, but in my experience they are largely in the small loan space. How often are these guys doing $50MM+ deals?
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