The typical commercial mortgage broker needs to receive at least eight new commercial loan leads every business day in order to survive.
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But there may come a time when you simply have to buy some commercial mortgage loan leads. There are two ways to buy commercial mortgage leads - on a flat-fee basis and on a contingency basis.
Most commercial leads are sold on a flat-fee basis. The broker pays a one-time, up-front fee for the lead of between $20 and $50 per lead. This is all you pay, even if you later go on to close the loan.
You can buy leads on a flat-fee basis from competitors of ours, like iBank and CommercialDeals. To find these companies, simply add a dot-com to those names to find their sites. They're friendly competitors of ours, and I don't want to give them a free, Page Rank Level 6, link on C-Loans.
If you knew for sure you were going to close about one out of every ten commercial leads, its probably cheaper to buy commercial leads on a flat-fee basis. The problem is that closing commercial loans depends a lot on luck. You might work on 50 commercial leads and not close a single deal. Now you're really stuck because you just spent your entire marketing budget.
This is why C-Loans sells it commercial leads on a contingency basis. In English, this means that you pay very little for our leads up-front. You can buy most of our leads for between $1 and $3 each, and our leads never cost more than $9 up-front. However, if the loan closes, you will also owe C-Loans a closing fee of 37.5 basis points. One hundred basis points equals one point, so 37.5 bps. is just a little over one-third of a point.
Which is better for you? It depends on the wealth of your company. If you are a bank or a hard money mortgage company, and you are making lots of dough, you may want to buy as many leads as possible on a flat-fee basis.
On the other hand, if you are a small commercial loan brokerage company, its probably much better to buy your leads on a contingency basis. This way you can afford five times more leads, which should greatly increase your chances of closing a deal.