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Developing Multiple Streams of Income in Your Commercial Real Estate Brokerage Business

By Jim Gillespie | December 1, 2011

When you’re prospecting and you’re interacting with your commercial real estate clients and prospects, there’s money to be made with them outside of just the commissions you’re making for closing commercial real estate transactions. Someone who’s a coaching client of mine, who works for one of the largest, most recognizable brokerage companies in America, once told me that a full one third of his income came from getting loan referral commissions.

The beauty of getting loan referral commissions is that you don’t have to be a broker representing someone in the sale transaction in order to get paid. When you locate a prospect who will be buying a building, you can then introduce them to loan representatives who have a solid track record of getting financing for buyers, and even if your buyer locates their property through another broker, you’re still going to get paid.

This is an opportunity that’s sitting right in front of your face right now.

You definitely want to make sure that doing this is legal within your own state, and with the lenders and the types of loans you’ll be dealing with. In addition, you’ll want to make sure that you give full, complete disclosure to your people about any participation in the loan fees by you that’s required by law.

So now when you’re prospecting, you’ll have an additional way of earning income with your people, which will now add to your total income for the year. One of the keys here is having one or more solid loan professionals who you can refer your business to, who will get the job done for you.

Whether or not you’ll be representing the buyer within a given transaction, you can introduce them to the people who can find them the best loans. In addition, you can make the introduction before the buyer ever begins looking at prospective buildings, which can help you along the way as you continue in building your relationship with the buyer.

Introducing buyers to the right professionals who can find them the best loans can help you earn and get paid more money every single year. In addition, if you coach your loan representatives in advance wisely, they can help reinforce the idea that you’re the broker buyers should be working with, whenever they’re interacting with the buyers you send to them.

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If you’re interested in one-on-one coaching to take your commercial real estate brokerage business to the next level, click here to contact me.

"After 20 years in real estate I needed to revive my business and look at new options and ideas. Together Jim and I evaluated my entire business plan, designed new strategies, and implemented a game plan that’s now making more money for both me and my team."

Bill Ukropina
Coldwell Banker Commercial

Click here to see more testimonials from my coaching clients.

 


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