Below you will find a brief industry competitive analysis. This represents a snapshot of current providers, their business models, pricing and services offered. The industry is occupied by only a small handful of companies 2 - 4 at most. These companies offer two primary business models.
1) Low cost per lead with high cost at closing.
2) Higher cost per lead with no cost at closing
As a result there is little choice but good opportunities to acquire quality deals and focus your time and financial resources on origination as opposed to marketing. It is important to remember that commercial mortgage leads are very different from residential. A residential mortgage lead is typically worth 2k - 5k on the average house priced at 200k or so. A Commercial Mortgage Lead is woth on average 5k - 20k or more based on the size of the project. In residential you close a loan and may never hear from the customer again. In Commercial Real Estate you close a loan and move on to the next deal with that same customer in most cases. You are building relationships and not just facilitating one small transaction.
CommercialLeads.net
* 100% dedicated to acquiring high quality opportunities.
* All generated from our network referral program and our unique marketing mix.
* 100% Contact Rate Guarantee - Leads returned for NA or if the applicant signed with another lender.
* Auto Credit -can be returned 24/7 and receive an instant credit.
* No Closing Fees - You keep 100% of your commission at closing.
CLoans -
Charges $3.00 - $9.00 per lead, 37.5 basis points at closing, require that you are in business for 3 years, provide financials and pull personal credit. They provide a lender directory but only if the visitor completes a lengthy lead form. Their business model is based mostly on the commissions they get at closing and must stay in constant contact with you to know when and how much.
LendingApps - Software Provider
Charges between $1,795.00 and $2,445.00. Provides software for commercial loan origination and advise / sources for marketing and acquiring prospects for SBA owner occupied properties.
Commercial Mortgage Central -
This is CLoans second site. Same company and services. They also own Blackbourne
Database Systems Corporation -
Call Center Software for telemarketing.
Other -
Most other lead providers found when searching on Google, Yahoo, MSN, AOL and others are truly residential providers who receive occasional commercial mortgage leads and therefore advertise to sell them. The quality is suspect as it is not their primary business and receive them based mostly on happenstance and the quantity is not there for the same reason.
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