For Tyler "Tax" Birkenmeier — Farmington, Missouri
Everything you need to know about commercial mortgage brokering in one read. Zero industry knowledge required. Strong sales skills will carry you.
You are a matchmaker. You find business owners or real estate investors who need a commercial property loan, then you connect them with a lender who will fund it. When the loan closes, you get paid. That's it. You don't lend your own money. You don't need a finance degree. You need to know enough to identify a viable deal and sell it to the right lender.
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7
Find Borrower → Qualify Deal → Package Loan → Shop to Lenders → Get Term Sheet → Due Diligence → CLOSE & GET PAID
(You) (You) (You) (You) (Lender) (Lender/Borr) (Cha-ching)
Your borrower is typically: - A business owner who wants to buy the building they operate from (owner-occupied) - A real estate investor buying an income-producing property (apartment building, retail strip, warehouse, etc.) - A property owner who needs to refinance an existing commercial loan - A developer who needs construction or bridge financing
Where to find deals: - Cold call property owners. Look up commercial properties in your area on LoopNet, Crexi, or county tax records. Call the owner. - Network with commercial real estate agents. They have buyers who need financing. Build referral relationships. - CPA firms and business attorneys. Business owners ask their CPA "should I buy this building?" — the CPA should refer them to you. - Your AT&T network. You've sold to business owners for years. Call them. "Hey, I'm expanding into commercial financing. Anyone you know looking to buy a building or refinance?" - LoopNet/Crexi. Call owners of listed properties and ask about their financing situation.
Before you spend time on a deal, you need to know if it's fundable. This is a 10-15 minute phone call. Ask the questions in Section 4. If the numbers don't work, politely decline and move on. Don't chase dead deals.
Red flags that kill a deal immediately: - Borrower credit score below 600 - Property doesn't generate enough income to cover the loan (DSCR under 1.0) - Borrower wants 100% financing (commercial almost always requires 15-40% down) - Property has major environmental issues - Borrower is currently in bankruptcy or foreclosure
Once you determine a deal is viable, collect the documents listed in Section 3. Organize them into a clean package. This is your "loan submission package." It's what you'll send to lenders.
What makes a good package: - Complete — no missing docs that will make lenders ask "where's the P&L?" - Clean — PDFs, clearly labeled, all in one folder - Summarized — include a one-page deal summary with key numbers
Deal Summary should include: - Property address and type - Purchase price (or refinance amount requested) - Loan amount requested - Property NOI (Net Operating Income) - Borrower credit score and net worth - Borrower experience with similar properties
Send your loan package to 5-15 lenders. Don't send to just one. You want competing offers. Different lenders have different appetites — a bridge lender wants different deals than an SBA lender.
Send to lenders that fit the deal: - Small balance ($100K-$2M): Gelt Financial, Blackburne & Sons, community banks, credit unions - SBA deals: SBA-preferred lenders (banks with SBA departments) - Bridge/Hard Money: Private lenders, hard money lenders - Large conventional ($2M+): CMBS lenders, life insurance companies, large banks
A term sheet is a non-binding offer from a lender. It spells out: loan amount, interest rate, term, fees, prepayment penalty, and key conditions.
Your job here: Compare term sheets and present the top 2-3 to your borrower. Explain pros/cons of each. Let the borrower choose. You don't make the decision — you guide it.
Once the borrower picks a lender and signs a Letter of Intent (LOI), the lender begins due diligence: - Orders an appraisal (takes 2-4 weeks) - Reviews all financial documents in depth - Orders environmental report (Phase I) - Reviews title work - Underwrites the loan
Your job: Keep the borrower responsive. If the lender asks for updated bank statements or clarification on a tax return, you're the middleman. Chase the borrower for docs. Keep things moving. Deals die in due diligence when borrowers go silent.
Closing day. The borrower signs loan documents. The lender funds the loan. You receive your commission — typically wired to your business account within 24-48 hours of closing.
| Loan Type | Typical Timeline |
|---|---|
| Hard Money / Bridge | 2-3 weeks |
| SBA 7(a) | 60-90 days |
| SBA 504 | 90-120 days |
| Conventional Bank | 45-60 days |
| CMBS / Life Company | 60-90 days |
Key takeaway: Bridge/hard money deals close fast (2-3 weeks) and you get paid fast. SBA and conventional take longer (2-4 months). Plan your pipeline accordingly. Start several deals at once so paychecks don't have gaps.
| Loan Type | Loan Size | Term | Rate (June 2026) | Min LTV/DSCR | Best For | Closing Time |
|---|---|---|---|---|---|---|
| SBA 7(a) | Up to $5M | Up to 25 yr | 9-11.5% APR | Up to 90% LTV / 1.15x DSCR | Owner-occupied, small biz | 60-90 days |
| SBA 504 | Up to $5.5M (CDC portion) | 10-25 yr | 6.5-8.5% (below 7a) | Up to 90% LTV / 1.15x DSCR | Owner-occupied CRE purchase | 90-120 days |
| Conventional Bank | $500K-$50M+ | 5-10 yr (balloon) | 5.5-8.5% | 65-80% LTV / 1.25x DSCR | Stabilized, income-producing | 45-60 days |
| Bridge Loan | $100K-$50M | 6 mo-3 yr | 5.99-12% | Up to 85% LTV | Short-term, value-add, quick close | 2-3 weeks |
| Hard Money | $75K-$5M | 6 mo-3 yr | 8-15% | Up to 75% LTV | Distressed, quick close, bad credit | 1-3 weeks |
| CMBS (Conduit) | $2M-$100M+ | 5-10 yr (fixed) | 6.3-6.8% | 65-75% LTV / 1.25x DSCR | Large, stabilized properties | 60-90 days |
| Agency (Fannie/Freddie) | $1M+ (multifamily) | 5-30 yr | 5.5-7% | Up to 80% LTV / 1.25x DSCR | Multifamily (5+ units) | 45-60 days |
| DSCR Loan (Non-QM) | $100K-$5M | 30 yr | 6-8% | Up to 80% LTV / 1.0x DSCR | Investment property, no tax returns needed | 30-45 days |
| Borrower Situation | Best Loan Type |
|---|---|
| Business owner buying their own building | SBA 7(a) or 504 |
| Investor buying a stabilized apartment building | Conventional or Agency |
| Investor needs to close in 2-3 weeks | Bridge or Hard Money |
| Property needs renovation before it cash flows | Bridge |
| Large, stabilized office/retail ($3M+) | CMBS |
| Investor with low personal income on tax returns | DSCR Loan |
| Borrower with bad credit but good property deal | Hard Money |
| Borrower needs max leverage (lowest down payment) | SBA 7(a) (up to 90%) |
When you're packaging a deal, here's what to collect from the borrower. Send them this list. Chase them. Don't submit to lenders with missing docs — it kills your credibility.
Property Information: - Property address and legal description - Current rent roll (for income-producing properties — list every tenant, rent amount, lease start/end) - Property photos (exterior, interior, surrounding area) - Current operating statement (trailing 12 months of income and expenses) - Capital improvements summary (what's been upgraded and when) - Copy of purchase contract (if a purchase) - Existing loan statement (if refinancing) - Property tax bills (last 1-2 years) - Insurance declaration page
Borrower Financial: - 2-3 years of personal tax returns (all pages, all schedules) - 2-3 years of business tax returns (if borrowing entity is a business — LLC, S-Corp, etc.) - Year-to-date P&L (Profit & Loss) and balance sheet for the business - Personal Financial Statement (PFS) — a one-page summary of the borrower's assets, liabilities, and net worth. Every lender has their own form; use a generic one. - Schedule of Real Estate Owned — list of all properties the borrower owns, with current loan balances, payments, and values - 2-3 months of bank statements (personal and business) - Liquidity verification — proof of funds for the down payment and closing costs (bank/brokerage statements showing cash) - Credit authorization — signed form allowing lender to pull credit
Borrower Background: - Resume or bio summarizing real estate experience - Ownership entity documents (LLC operating agreement, articles of organization)
Don't dump the full checklist on a borrower in the first call. You'll overwhelm them. Instead:
First call: "Great, this sounds like a deal we can work with. The next step is simple — I need three things: your last two tax returns, a current P&L, and a personal financial statement. I'll send you my secure document link. Once I have those, I can get you real numbers from lenders within a few days."
Once they're committed and you have the basics, then ask for the rest.
Lenders evaluate deals through four main lenses:
Your goal on the first call is to determine: Is this deal fundable, and is this borrower someone I want to work with?
Here's your script. Memorize it. Adapt it to your voice.
"Hey [Name], this is Tyler. I'm a commercial mortgage broker based in Farmington, Missouri. I got your info from [source] and wanted to see if I could help with any commercial financing needs you might have. Is now an okay time for a quick chat?"
If they say no: "No problem — what's a better time to call you back?" Get a specific time. Follow up.
1. "What kind of property are you looking at — and what's the deal? Purchase, refinance, or construction?" - Why: Determines the loan type. Purchase = you need down payment proof. Refinance = you need existing loan statement. Construction = whole different ballgame.
2. "What's the property type — office, retail, industrial, multifamily, mixed-use, or something else?" - Why: Different lenders specialize in different property types. SBA loves owner-occupied. CMBS wants stabilized retail/office. Multifamily has the most lender options.
3. "What's the purchase price, and how much are you looking to borrow?" - Why: This gives you LTV immediately. $1M purchase, $800K loan = 80% LTV. $1M purchase, $950K loan = 95% LTV (not happening outside SBA). Loan size also determines which lenders can help.
4. "Is this going to be owner-occupied — meaning you'll run your business from at least 51% of the space? Or is it purely an investment property?" - Why: Owner-occupied opens SBA options. Investment-only closes SBA but opens DSCR, conventional, agency.
5. "What's the property bringing in? What's the annual revenue — and after expenses, what's left?" - Why: This is the NOI (Net Operating Income). If they don't know their NOI, they're not a serious borrower. A serious operator knows their numbers. No NOI = you can't size the loan = deal is dead until they produce it.
6. "What's your credit roughly look like — ballpark FICO? Any recent bankruptcies, foreclosures, or tax liens?" - Why: Below 600 = hard money only. 600-650 = bridge, hard money, maybe DSCR. 650+ = conventional, SBA, all options open. Bankruptcies/foreclosures are deal-killers or constraints depending on recency.
7. "How many commercial properties have you owned or managed before? What's your experience level?" - Why: First-time investor with no experience = higher risk. Lender will want more equity/down payment. Experienced operator with a portfolio = easier to get approved.
8. "Do you have the down payment ready to go? Where's the cash coming from?" - Why: "I was hoping the seller would finance the down payment" = red flag. A serious borrower has cash or a clear plan (HELOC, 1031 exchange, investor partner, etc.).
9. "What's your timeline? When do you need to close?" - Why: "I need to close in 2 weeks" = bridge/hard money only. "60-90 days" = SBA or conventional doable. Mismatched timeline expectations kill deals.
10. "Have you talked to any other brokers or lenders about this deal already?" - Why: If they're shopping, that's fine — but know what you're competing against. If they had a deal fall apart, find out why. The last lender's rejection reason is gold — it tells you what to avoid or what to fix.
GREEN LIGHT (worth pursuing): - Clear property type and deal structure - NOI that covers loan payments (DSCR 1.25x or higher) - Credit score above 650 - Down payment money verified or clearly available - Realistic timeline expectations - Borrower has some real estate or business experience
YELLOW LIGHT (possible but harder): - NOI is tight (DSCR 1.0-1.25x) - Credit 600-650 - First-time buyer but strong personal finances - Timeline tight but maybe doable with bridge
RED LIGHT (walk away): - Borrower won't share credit score or financials - NOI doesn't even cover proposed debt payments (DSCR below 1.0) - Borrower has no down payment and no plan to get one - Active bankruptcy or recent foreclosure (less than 2 years) - Property is environmentally contaminated or condemned - Borrower lied about anything you can verify
You earn 0.5% to 1.5% of the loan amount, with 1% being the industry standard for most deals.
| Loan Amount | 1% Commission | 0.75% Commission | 0.5% Commission |
|---|---|---|---|
| $100,000 | $1,000 | $750 | $500 |
| $250,000 | $2,500 | $1,875 | $1,250 |
| $500,000 | $5,000 | $3,750 | $2,500 |
| $1,000,000 | $10,000 | $7,500 | $5,000 |
| $2,000,000 | $20,000 | $15,000 | $10,000 |
| $5,000,000 | $50,000 | $37,500 | $25,000 |
If you close one $1M deal at 1%, that's $10,000. Close one per month = $120,000/year. Close two per month = $240,000/year.
There are two structures:
At closing. Your commission is wired to your business bank account, typically within 24-48 hours after the loan funds. Some lenders pay same day.
If you join an established brokerage (recommended for your first 3-6 months):
Before you do substantial work on a deal, have the borrower sign an engagement letter or fee agreement. This:
Template language:
"In consideration of Broker's services in arranging financing for the Property, Borrower agrees to pay Broker a success fee equal to one percent (1.0%) of the gross loan amount funded at closing. This fee may be paid by Lender on Borrower's behalf and disclosed on the settlement statement."
| Lender Type | Examples | Best For |
|---|---|---|
| SBA Preferred Lenders | Live Oak Bank, Newtek, Celtic Bank, Byline Bank | SBA 7(a) and 504 |
| Community Banks | Local banks in Missouri (your advantage!) | Relationship-based small commercial |
| Agency (Fannie/Freddie) | Walker & Dunlop, CBRE, Berkadia, Greystone | Multifamily 5+ units |
| Large Commercial Banks | Wells Fargo, JPMorgan Chase, Bank of America, PNC | Large conventional, well-qualified borrowers |
| CMBS/Conduit | KeyBank, Goldman Sachs, Citigroup, Deutsche Bank | Large stabilized properties |
| Private Debt Funds | Various | Bridge, value-add, transitional |
| Hard Money Direct | Blackburne & Sons, Gelt Financial, various local | Quick close, distressed, asset-based |
RESIDENTIAL = REQUIRES LICENSE (SAFE Act / NMLS) - Any loan secured by a 1-4 unit residential property where the borrower lives (or will live) - Requires: 20 hours pre-licensure education, passing the NMLS exam, background check, continuing education - Missouri Division of Finance enforces this strictly (Missouri Revised Statutes § 443.805) - DO NOT touch residential deals unless you get properly licensed.
COMMERCIAL = NO NMLS LICENSE REQUIRED - Loans for: office buildings, retail, industrial, multifamily (5+ units), mixed-use, hotels, self-storage, etc. - Also: investment residential properties (1-4 units owned purely for investment, not owner-occupied) are generally treated as commercial - No SAFE Act / NMLS licensing required for brokering commercial-only loans - This is where Tyler operates. Stay in this lane.
This is new and you need to comply with it.
Signed July 11, 2024, by Governor Mike Parson. Missouri Senate Bill 1359 enacted the Missouri Commercial Financing Disclosure Law. It imposes:
The law applies to "commercial financing" — broadly defined to include loans, lines of credit, and other forms of financing to businesses located in Missouri. Certain exemptions exist (e.g., larger transactions, specific lender types).
The law was signed July 2024. The Division of Finance is working on implementing regulations and registration forms. Check finance.mo.gov for the latest on registration availability.
Many independent commercial brokers operate without a specific "commercial mortgage broker license" because historically, Missouri (like most states) only regulated residential mortgage brokers. The new SB 1359 changes this by adding a registration requirement for commercial brokers. It is NOT the same as residential licensing (no exam, no pre-licensure education, no NMLS). But you must register and maintain the bond.
Missouri has a dense network of community banks — over 250 state-chartered banks and many more nationally chartered. These banks do commercial real estate lending and many don't have dedicated commercial loan officers covering every county. You can be their boots on the ground, bringing them deals they wouldn't otherwise see. Farmington and the surrounding counties (St. Francois, Ste. Genevieve, Washington, Iron, Madison) are underserved for commercial mortgage brokering.
Research before calling: Look up the property on LoopNet, Crexi, or county tax records. Know the property type, estimated value, and owner name before you dial.
YOU: "Hi, is this [Name]?"
THEM: "Yes, who's this?"
YOU: "This is Tyler Birkenmeier. I'm a commercial mortgage broker based in Farmington. I was looking at commercial properties in the area and saw your [property type] on [street]. I'm calling because a lot of property owners are taking advantage of current financing programs to either refinance or pull equity out for expansion. Is that something you've thought about at all?"
THEM - If interested: "Actually, I have been thinking about refinancing..." / "Tell me more."
→ Move to qualifying questions (Section 4)
THEM - If not interested: "No, I'm good."
→ Go to Objection Handling below
THEM - If curious but cautious: "I don't know, what kind of rates are we talking about?"
→ "Great question. Rates depend entirely on the property type, your financials, and the loan structure — but conventional commercial loans are running 5.5% to 8.5% right now, and SBA can get you up to 90% financing if you occupy the building. I'd need to know a little more about your situation to give you anything specific. Do you have 5 minutes to walk through a few questions?"
YOU: "Hey [Name], this is Tyler returning your call / following up from [source]. I understand you're looking at commercial financing. I've got about 10 minutes — tell me what you're working on, and I'll let you know if I can help and what your options look like."
Let them talk. Listen more than you speak. Then:
YOU: "Okay, here's what I'm hearing: [summarize back]. I think there are a couple of good options here. Let me ask you a few quick questions so I can narrow down which lenders and programs make the most sense..."
→ Move to the 10 qualifying questions (Section 4)
YOU: "Alright [Name], based on what you've told me, this looks like a deal I can get done. Here's what I want to do next — I need three documents from you: your last two tax returns, a current P&L for the property, and a personal financial statement. I'll send you a secure link to upload those. Once I have them, I'll package everything up and shop it to 10-15 lenders who specialize in exactly this type of deal. You'll have real term sheets in about a week. Sound good?"
Get commitment: "When do you think you can have those docs to me?"
Response:
"That's great — having an existing banking relationship means you're already moving forward, which is smart. Here's the thing: your bank can offer you one rate, one term, one program. I shop your deal to 10-15 lenders who compete for it. Even if you end up staying with your bank, you'll know for sure you got the best terms. All I'd ask is that you let me run your numbers and show you what the market is actually offering. If your bank beats it, you lost nothing. If I beat your bank, you save money. Fair enough?"
Response (for cold calls):
"Totally understand — most people I call aren't actively looking. Can I ask — do you own the building you operate from, or do you lease? [If lease:] A lot of business owners don't realize they could own their building for about what they pay in rent, especially with SBA programs that only require 10% down. Worth a conversation at some point. [If own:] Got it. Well, if rates drop or you ever want to look at pulling equity out for expansion, I'm local here in Farmington. Can I shoot you my contact info in case something comes up?"
Response:
"I hear you. In most cases, the lender pays my fee — not you. I get paid at closing from the lender's side, so there's no direct cost to you. And because I shop multiple lenders competing against each other, I typically save borrowers more in rate and terms than any fee would ever cost. Happy to show you exactly how that works if you're open to it."
Response:
"No problem at all — actually, that's the perfect time to talk to me. Getting pre-qualified early means you know exactly what you can afford before you find the property. Plus, when you do find the right building, you can move fast and beat out other buyers who haven't done their financing homework. Want me to run a quick pre-qual for you? Takes 10 minutes, no obligation."
Response:
"Don't count yourself out yet. Commercial lending is different from residential — the property's cash flow matters more than your FICO. I work with hard money and private lenders who care about the deal, not just the credit score. The rate will be higher, but if the numbers work, the deal works. Want to walk through it and see?"
Response:
"Absolutely — this is a big decision. What specific questions do you want to run by them? I can send you a quick summary of what we discussed so you have the numbers in writing to share. When should I follow up with you — does Thursday afternoon work?"
Response:
"Happy to. What specifically would be most helpful — current rates for your property type, a list of the loan programs you'd qualify for, or a breakdown of what the monthly payment would look like? [Get specific.] I'll put that together and send it over. What email address should I use?"
Tyler, you already know how to sell. Here's how your AT&T sales skills translate:
| AT&T Skill | Commercial Mortgage Application |
|---|---|
| Building rapport fast | First 60 seconds determine if they'll talk to you |
| Discovery questions | The 10 qualifying questions = your discovery |
| Handling objections | Same skill — different objections (see above) |
| Closing | Get the docs. Get the commitment. Follow up relentlessly. |
| Pipeline management | You need 10-15 active deals at all times; 2-3 will close |
| Rejection resilience | 90% of calls won't convert. The 10% that do pay you $5K-$50K. Keep dialing. |
The biggest difference: At AT&T, you close a sale and move on. In commercial mortgage brokering, you close a deal and get 3-5 referrals from that client (CPA, attorney, other investors in their circle). The referral flywheel is everything. Nurture every relationship.
Q: Do I need a license to be a commercial mortgage broker in Missouri? A: Not an NMLS/SAFE Act license (that's for residential). But Missouri's new SB 1359 (2024) requires commercial finance brokers to register with the Missouri Division of Finance and maintain a $10,000 surety bond. This registration is NOT the same as the residential mortgage broker license — no exam, no education hours. Just register, pay the fee, get the bond. Check finance.mo.gov for when the registration portal opens.
Q: Can I start brokering deals before the Missouri registration is available? A: The law is signed but the registration system may not be live yet. Many commercial brokers are operating under the historical carve-out that didn't require commercial licensing. The safest path: Monitor the Division of Finance for updates and register as soon as it's available. In the meantime, work under an already-established broker or platform (like REIL Capital's partner program) which handles compliance on their end.
Q: Do I need an LLC or business entity? A: Yes. Form an LLC. It protects your personal assets, looks professional, and lenders will pay your LLC (not you personally). Cost: ~$50-100 to file with the Missouri Secretary of State. Get an EIN from the IRS (free). Open a business bank account.
Q: How much money do I need to start? A: Minimal. Your startup costs: LLC formation ($50-100), surety bond ($100-500/year), registration fee (TBD, probably $100-500), business cards, a phone, and a computer. Maybe $500-$1,500 total. You do NOT need an office — work from home. No inventory. No employees. This is a very low-capital business.
Q: Should I work under an established broker first or go independent immediately? A: Work under someone first — even if only for 3-6 months. An established broker gives you: (1) existing lender relationships so you can submit deals on day one, (2) training on how to package and structure deals, (3) credibility when calling lenders ("I'm with XYZ Capital" sounds better than "I'm Tyler, I just started last week"). The commission split will be lower (50-70% to you), but you'll close deals faster. Once you have 5-10 deals under your belt and lender relationships of your own, go independent and keep 100%.
Q: How long until I get my first commission check? A: Realistically, 3-6 months from when you start. This is not a get-rich-in-30-days business. It takes time to find a deal, package it, shop it, get through due diligence, and close. Bridge/hard money deals close fastest (2-3 weeks from submission), but you still have to find the deal first. Most new brokers close their first deal in month 3 or 4.
Q: What's a realistic first-year income? A: First year: $30,000-$60,000 if you're grinding full-time. Second year: $80,000-$150,000 as your referral network and pipeline mature. Third year+: $150,000-$300,000+ for top performers. This assumes you're full-time. Part-time while keeping your AT&T job: cut these numbers in half.
Q: What's the smallest deal I should work on? A: Don't bother with deals under $100,000. At 1%, a $50K loan pays $500. That's not worth your time. Minimum viable deal: $100K loan = $1,000 commission. Sweet spot for new brokers: $250K-$2M loans = $2,500-$20,000 per deal.
Q: What if the borrower goes around me and deals directly with the lender? A: This is why you need an engagement letter signed upfront. It creates a contractual right to your fee. If you introduced the borrower to the lender during the engagement period, you're owed your fee even if they try to cut you out. Most reputable lenders honor broker relationships and won't poach your borrower if you submitted the deal first.
Q: What happens if the deal falls apart in underwriting? A: You get paid zero. This is a success-fee business. You only eat what you kill. This is why qualifying deals properly upfront (Section 4) is critical — you don't want to waste weeks on a deal that was never going to close. Also why you need multiple deals in your pipeline at all times.
Q: What does a typical day look like? A: - Morning (8am-12pm): Prospecting. Cold calls, follow-ups, networking calls with CPAs and real estate agents. This is your "hunting" time. - Afternoon (12pm-4pm): Deal work. Packaging loans, submitting to lenders, chasing borrowers for docs, checking on deals in underwriting, negotiating term sheets with lenders. - End of day (4pm-5pm): Admin. Update your pipeline tracker, send follow-up emails, plan tomorrow's call list.
Q: Do I need to understand complex financial modeling? A: No. You need to understand LTV, DSCR, and NOI. That's it. Lenders do the heavy underwriting. Your job is to know enough to (a) spot a viable deal, (b) match it to the right lender, and (c) not embarrass yourself on the phone.
Q: How do I learn the lender landscape? A: Call lenders. Ask them: "What's your sweet spot? What property types? What loan sizes? What's your minimum credit score?" Build a spreadsheet. Every call is an education. After 20 lender calls, you'll have a solid mental map of who does what.
Q: What if I don't know the answer to a borrower's question? A: Say: "Great question — let me confirm that with the lender and get back to you today." Then call your lender contact and ask. Never guess. Never make up an answer. Credibility is everything in this business. It's okay to say "I need to check on that."
Q: Is commercial mortgage brokering saturated? A: In major metros (NYC, LA, Chicago) — yes. In Missouri, especially outside St. Louis and Kansas City — no. Your Farmington location is an advantage, not a disadvantage. You can serve the entire state. Small community banks in rural Missouri don't have teams of loan officers chasing commercial deals. You fill that gap.
Q: What's the biggest reason new brokers fail? A: They stop prospecting. They work one or two deals, get excited, stop making calls while those deals go through underwriting, the deals fall apart (which happens often), and suddenly their pipeline is empty. Never stop prospecting. Always have 10+ active deals in your pipeline.
Q: Can I do this while keeping my AT&T job? A: Yes, initially. Prospect during evenings and weekends. But to go full-time and hit six figures, you'll eventually need to commit fully. The first 3-6 months can be part-time while you test the waters and close your first deal.
Q: What's the best way to learn the technical side? A: 1. Read this document 3 times 2. Call 20 lenders and ask them what they lend on 3. Watch every deal your mentor/partner broker works on 4. Get on commercial real estate podcasts (The Commercial Real Estate Show, various) 5. Study real term sheets — ask your broker partner to share past deals (with borrower info redacted)
| Metric | Benchmark |
|---|---|
| Standard broker commission | 1% of loan amount |
| Conventional LTV max | 65-80% |
| SBA 7(a) LTV max | Up to 90% |
| Conventional DSCR min | 1.25x |
| Hard money DSCR min | Asset-based (flexible) |
| SBA 7(a) max loan | $5,000,000 |
| SBA 7(a) max term | 25 years (real estate) |
| Hard money/Bridge rate range | 6-15% |
| Conventional rate range (June 2026) | 5.5-8.5% |
| SBA 7(a) APR range (June 2026) | 9-11.5% |
| Typical bridge term | 6 months - 3 years |
| Typical SBA timeline | 60-90 days |
| Typical bridge timeline | 2-3 weeks |
| Missouri surety bond requirement | $10,000 |
| Acronym | Full Name | What It Means |
|---|---|---|
| LTV | Loan-to-Value | Loan amount ÷ property value. Lower = safer. |
| DSCR | Debt Service Coverage Ratio | NOI ÷ annual debt payments. Must be > 1.0. |
| NOI | Net Operating Income | Property revenue minus operating expenses (before debt service). |
| P&L | Profit & Loss Statement | Income and expense report for a business or property. |
| PFS | Personal Financial Statement | Snapshot of borrower's personal assets, liabilities, net worth. |
| SBA | Small Business Administration | Government agency that guarantees business loans. |
| CMBS | Commercial Mortgage-Backed Securities | Loans pooled and sold as bonds on Wall Street. |
| LOI | Letter of Intent | Preliminary, non-binding agreement on loan terms. |
| CRE | Commercial Real Estate | Office, retail, industrial, multifamily, etc. (not 1-4 unit residential). |
| NMLS | Nationwide Mortgage Licensing System | Required for residential mortgage originators. NOT required for commercial-only. |
| CDC | Certified Development Company | Nonprofit that partners with banks on SBA 504 loans. |
| DUS | Delegated Underwriting and Servicing | Fannie Mae's multifamily lending program. |
| HELOC | Home Equity Line of Credit | Loan against residential equity — used by some investors for down payments. |
Week 1: - Form your LLC and get an EIN - Open business bank account - Read this document twice - Research Missouri Division of Finance registration status - Create a simple deal tracking spreadsheet (Google Sheets is fine)
Week 2: - Sign up with 3-5 broker-friendly lenders (REIL Capital partner program is an easy first step) - Call each lender's broker relations contact and introduce yourself - Start building your lender matrix spreadsheet
Week 3: - Make 50 cold calls to commercial property owners in Farmington and surrounding counties - Attend a local Chamber of Commerce or BNI networking event - Reach out to 10 CPAs in your area — introduce yourself, ask for coffee
Week 4: - Make 50 more cold calls - Follow up on every lead from weeks 1-3 - If you have a viable deal, package it and submit to 5 lenders - Identify a mentor or established broker you can partner with on your first deal
You're entering a business where your sales skills are your #1 asset. Most people who enter commercial mortgage brokering come from finance — they know the math but can't sell. You come from sales — you can sell but need to learn the math. The math is easier to learn than selling. In 90 days, you'll know enough to be dangerous. In 6 months, you'll be closing deals.
The formula is simple: 1. Talk to people (prospecting) 2. Ask the right questions (qualifying) 3. Put deals in front of lenders (packaging/submitting) 4. Follow up relentlessly (pipeline management) 5. Get paid (closing)
Your AT&T face-to-face sales superpower means you should prioritize in-person networking. Go to every Chamber event, every real estate investor meetup, every business networking group within 50 miles. Look people in the eye, shake hands, and say: "I help business owners get commercial property loans. If you know anyone looking to buy a building or refinance, I'd love to help them."
Now go make some calls.
Last updated: June 29, 2026 | Compiled from current industry sources, lender websites, Missouri statutes, and commercial mortgage broker resources.