As a mortgage broker specializing in commercial real estate, you probably have a more optimistic outlook than your colleagues on the residential side. Dismal reports on the housing market and a decrease in business are resulting in a shift for residential brokers. Seeking shelter from the storm, many are successfully transitioning into the
commercial market. Perhaps, you're one of them.
When news stories, such as one in the Commercial Mortgage News, report that "mortgage companies cut 5,600 full time employees from their payrolls in December," it doesn't look like an enthusiastic outlook for those who count on the industry to earn their living.
In that same article, the online publication continued on to report that "nearly a quarter of the industry's work force lost their jobs." And, to top it off, the U.S. Bureau of Labor Statistics research showed that employment in the mortgage banker/broker sector fell from 374,600 in November to 369,000 in December - down 23.7% from that of Dec., 2006.
It's challenging for residential brokers to remain motivated during times like these. Especially when tightening credit guidelines make it tougher for their homebuyer clients to borrow money.
So where's the good news in all of this?
If you're a mortgage broker working in the commercial real estate sector, you're probably having a different experience than your fellow residential brokers. That's because industry reports indicate that a record $325 billion was invested in commercial real estate in the first 10 months of 2007 ? up from $306.8 billion for all of 2006. And, this number doesn't include transactions valued at less than $5 million or investments in the hospitality sector, based on an analysis of data from Real Capital Analytics.
The optimistic news for commercial real estate combined with the pessimism in the residential market could explain the recent influx of residential brokers transitioning into commercial real estate. These "new" brokers are discovering that not only is the commercial market a way for them to stay afloat, but it's not as intimidating or challenging as they once thought. In addition, they receive excellent support from their employers - lenders who serve as mentors, and who show them the ropes to succeed in a different realm than they're used to.
If you're one of those residential brokers considering a switch to commercial, contact us at Ocean Capital. We'll be happy to discuss the benefits of making the transition and how we can help you succeed.
commercial market. Perhaps, you're one of them.
When news stories, such as one in the Commercial Mortgage News, report that "mortgage companies cut 5,600 full time employees from their payrolls in December," it doesn't look like an enthusiastic outlook for those who count on the industry to earn their living.
In that same article, the online publication continued on to report that "nearly a quarter of the industry's work force lost their jobs." And, to top it off, the U.S. Bureau of Labor Statistics research showed that employment in the mortgage banker/broker sector fell from 374,600 in November to 369,000 in December - down 23.7% from that of Dec., 2006.
It's challenging for residential brokers to remain motivated during times like these. Especially when tightening credit guidelines make it tougher for their homebuyer clients to borrow money.
So where's the good news in all of this?
If you're a mortgage broker working in the commercial real estate sector, you're probably having a different experience than your fellow residential brokers. That's because industry reports indicate that a record $325 billion was invested in commercial real estate in the first 10 months of 2007 ? up from $306.8 billion for all of 2006. And, this number doesn't include transactions valued at less than $5 million or investments in the hospitality sector, based on an analysis of data from Real Capital Analytics.
The optimistic news for commercial real estate combined with the pessimism in the residential market could explain the recent influx of residential brokers transitioning into commercial real estate. These "new" brokers are discovering that not only is the commercial market a way for them to stay afloat, but it's not as intimidating or challenging as they once thought. In addition, they receive excellent support from their employers - lenders who serve as mentors, and who show them the ropes to succeed in a different realm than they're used to.
If you're one of those residential brokers considering a switch to commercial, contact us at Ocean Capital. We'll be happy to discuss the benefits of making the transition and how we can help you succeed.
