One top lender offers tips for success for brokers getting their foot in the door to new real estate markets
This article was produced in partnership with RCN Capital.
Karen Surca of Insurance Business sat down with Nathan Zielinski (pictured), business co-ordinator with RCN Capital to discuss new investment opportunities nationwide in the non-QM market.
If there is one thing that Nathan Zielinski, business development coordinator for RCN Capital wants mortgage brokers to know is that there are opportunities to be had in areas across the country to tap into investment opportunities in the non-QM space.
“I am responsible for the broker onboarding process for RCN Capital, and I will introduce them to the world of real estate,” Zielinski stated.
As part of this process, Zielinski and RCN Capital has felt that there is a real need to educate these brokers in addition to its seasoned brokers about the hidden potential of working with investors in the non-QM space in markets that may fall out of the direct area that a broker may be currently working in.
“Many investors or brokers that are looking for leads and are in competitive markets, or may be starting up in Miami or Los Angeles, Boston or the New York City area are struggling for leads,” Zielinski explained.
“We would like them to know that there are opportunities elsewhere that will enable them to tap into different markets across the country. They may have some preconceived notions surrounding what the licensing restrictions might be and may believe that they are constricted where they may be locally,” Zielinski added.
Working as a nationwide private direct lender, RCN Capital is aware of this untapped potential in different areas such as rental investment and fix & flip opportunities to be explored in smaller, less competitive markets across the country. Zielinski explained that this investment potential and potential business generated for brokers can even carry into the area of new construction in the non-QM space.
How can brokers break into new markets?
Encouraging new and existing brokers to think beyond their current real estate market is part of a general push by RCN Capital to be represented across the country as a nationwide lender.
To encourage this process Zielinski points out that some of the fear needs to be taken out of the equation.
“There are a lot of things that go on when brokers are trying to first start out. Maybe they do not have the right connections, or they are not tapped into by the people in the local area. Or maybe they just need to branch out and open their investment portfolio to people in other areas across the country,” Zielinski said.
If these brokers can take a step back and try to approach other lenders in different states, the process may open considerably and reduce the competitive aspect found so often in bigger markets.
One way to approach the dilemma of breaking into these outside markets lies directly with using tools at the broker’s disposal.
“Social media is a great tool and trade shows are also a great tool and there are real estate associations that are all across the country,” Zielinski stated.
“These are the kinds of things that they should be tapping into when trying to get out of that tunnel vision of staying in the market where they are currently in. We encourage brokers to branch out and let them know that there are not really any obstacles. There are markets cropping up which represent a great opportunity if they widen their purview,” Zielinski concluded.
Part of the process also involves researching these markets, and there is no better tool to achieve this than the internet Zielinski pointed out. What do the new areas represent? How is the real estate market in these new areas? Which investors have a pull in the local market? These questions should form part of the research.
“Joining Facebook pages or LinkedIn, Twitter can lead to different conversations with local investors. Or there are a lot of areas that brokers can research under real estate brokers or real estate investors when targeting a new area,” Zielinski elaborated.
Using all resources, keeping lines of communications open, and being receptive to new potential investment opportunities beyond the local scope work in tandem to achieve the end goal - a nationwide presence and foot in the door of new real estate markets across the country.
Another key to success Zielinski highlighted, is the element of trust.
“Working with people you trust is the most important thing. Working with people that you feel have your best interest at heart. I think that’s what our RCN Capital team really strives to do especially with our business development team,” Zielinski illustrated.
“Any new products that we have that we like to relay to the broker we want them to know we have training programs and live training sessions and seminars that can be listened in on,” Zielinski added.
An equally necessary part of the puzzle boils down to getting rid of the fear among new brokers to take the plunge into new markets.
Zielinski pointed out, “Don’t be afraid to put yourself out there. Not every deal is going to be a success. But if you do these enough times and you get it down and you get the people you trust and a lender you trust on your side then you will see positive results often. Before you know it, you are on a roll.”
Nathan Zielinski has worked as a business development co-ordinator at RCN Capital for just over a year now. He works directly with brokers and investors and wants to help you get your next deal funded.