I’m a REALTOR® – Why Should I Refer My Clients to Modern Funding for Commercial Real Estate Loans?

Modern Funding offers a wide range of lending products to help REALTORS®, brokers and sales agents close more commercial real estate transactions and generate more revenue.

Make More Money with Commercial Real Estate Loans!

A ready source of capital for all your customers’ commercial real estate financing needs can give you a competitive edge in today’s crowded marketplace.  In addition to helping you generate sales commissions, referring loans to Modern Funding can create referral fee income for you as well.

Market conditions are extremely favorable for REALTORS® who want to enter the commercial market:  growing investor demand for small-cap commercial real estate; low interest rates and cap-rate compression make for a compelling investment thesis for your clients.

Strengthen Your Client Relationships

Add value to your clients by advising them to work with the experts at Modern Funding.  Your clients will get the best rate and terms and you’ll know that their transactions will close.

Commercial real estate transactions are complex and time sensitive.  While you and your clients may have had success securing loans from local banks, regulators are starting to take a hard look at banks’ CRE concentrations, forcing some banks to pull back on CRE lending.  What happens when those banks say no?

There are hundreds of non-bank or “alternative” lenders willing to finance CRE, but how do you know where to turn or who to trust with your clients’ transactions?  Most borrowers know that non-bank lenders charge higher interest rates than banks, but if that’s all they know they are overlooking a large group of lenders that can close more quickly, extend more credit and who can look past certain credit issues when determining loan eligibility.

Diversify – and EXPAND – Your Business

Commercial real estate sales is a logical extension of your service offerings that can enable you to protect your best client relationships and create new ones.  In addition, you can provide a unique value to referral partners (e.g. attorneys and CPAs) who may not have a resource for their clients’ commercial real estate financing needs.

Your target clients for commercial real estate are often the same clients you’ve been working with for years on the residential side of your business.  Some of your wealthiest clients – small business owners, entrepreneurs and the self-employed – are your best prospects.  As these clients build their net worth, they may start to consider investing in commercial real estate to generate income and create wealth that can be passed down to future generations in a tax-advantaged manner through IRS 1031 tax deferred exchanges.

CRE opportunities are everywhere.  Over $180 billion of small balance loans were funded in 2015 alone (Source:  Boxwood Means) fueled by a robust property sales market that grew by 20.5% annually in 2015 according to National Association of REALTORS® (NAR) data, and a healthy environment for refinancing.  These loans were provided by a diverse set of capital sources:

NAR chart

We Make It Easy

At Modern Funding, we strive to make the relationship with brokers as easy and intuitive as possible.  Spend some time on the our website.  Visit the Resource Center to gather tips on commercial real estate finance and investing and download templates you and your clients will need.  Utilize the Genarater to get a sense of what your client’s estimated interest rate and monthly mortgage payment will be for a property they hope to purchase.

When you are ready, fill out the loan referral form.  We’ll review the information and contact you within a business day.  We’ll find the best commercial real estate loan to meet your client’s needs and when the loan closes we’ll pay you a referral fee.  We do the work, you collect a fee.