Private lender touts unique referral program to ease originators into the world of commercial lending
RCN Capital is offering a value-added program for brokers who work with the private lender.
Aimed primarily at brokers who are more used to dealing with residential loans, RCN wants to encourage originators to market commercial loans by demystifying the entire process.
According to RCN’s chief marketing officer, Erica LaCentra (pictured), brokers often baulk at the idea of marketing commercial loans, admitting that they are unsure what to do when they receive inquiries about real estate investing and financing.
This is often because brokers associate commercial loans with more traditional commercial properties - such as industrial buildings, warehouses and restaurants - unaware they also cover one to four family properties dedicated to business use.
Read more: RCN Capital’s compelling case for ground-up construction
It’s also a missed opportunity, as far as RCN is concerned.
LaCentra said: “If you’re getting a handful of these inquiries every month but you’re not doing anything with them, that’s money left on the table.”
“Commercial loan products are different from residential mortgage products but, essentially, they’re an easier product to sell.”
She added: “Our underwriting guidelines are pretty much common sense; there’s a lot less documentation that’s required for our types of loans; you don’t have to go through the disclosure process like you would on the residential side; you don’t have to get into all kind of legal logistics and a lot of the other specific guidelines that need to be followed on the residential side.”
In response, RCN has lined up an impressive array of resources and tools, including a specific course aimed at helping brokers promote commercial products effectively and tap into investor clients.
Read more: Erica LaCentra, Marketing manager, RCN Capital LLC
Part of the course involves assuring brokers that very often they are best served by engaging the smaller scale - mom and pop - investors of the world.
LaCentra said: “One of the things that we really tell brokers is to try and tap into their existing networks, either directly with folks that are investing in real estate, or other existing connections throughout the industry, whether they are other service providers, realtor or their broker connections.
“Investor clients are not as elusive as you think they are. Chances are you either have a number of them in your existing contacts, or you have other people that would be happy to connect you with them.”
Brokers merely need to use their expertise and introduce investors - who in many cases form part of their existing network - to the best products, she explained.
In addition, RCN Capital will include bespoke branded marketing packages with customization options, as well as a comprehensive list of loan program-specific marketing assets, such as programs for foreign investors and short-term vacation rental homes.
RCN will also offer less tech-savvy brokers a special service to customize materials and include their logo and contact information.
The broker referral program is ultimately aimed at empowering broker partnerships, she said. “We want them to realize that this opportunity is available to them. It’s at no additional cost.”
