From the Editor
By Neil Pierson
Keep your career in mind,
even during summer break
It’s August, which means kids are deep into their summer vacations. You might notice them getting a bit restless,
and that may cause you to think, “It’s going to be great when they go back to school.” Classrooms and learning
are likely the furthest things from their minds at this point.
For commercial mortgage professionals who strive to always be growing, however, education is not something
to take an extended vacation from pursuing. This month’s magazine, which focuses on training and career,
is designed to be a reminder that mortgage brokers can — within formal or informal educational
settings — always brush up on their rusty skills or incorporate new skills into their arsenal.
We look to make an immediate impression on this front with our Q&A featuring
Nancy E. Wallace of the Fisher Center for Real Estate and Urban Economics at the
University of California, Berkeley. On Page 20, Wallace discusses what’s happening
within an elite school for students who wish to enter the fields of real estate and
finance. She also talks about the role of a university as it relates to compiling data
and serving the existing ranks of commercial mortgage professionals.
Our lead article for August is from a first-time author, Justin Short of Hunt
Mortgage Group, who on Page 31 writes about the importance of long-term
vision to help clients maximize their investment potential. Mortgage brokers
should look at the pros and cons of nonbank commercial mortgage-backed
securities, bridge loans and mezzanine financing, for example, rather than turning
exclusively to the cheapest loan solutions, Short writes.
Brokers who dabble in work with small-business owners should know there’s a new financing
product on the market to assist these borrowers. This past April, the U.S. Small Business Administration instituted a new 25-year term for its 504 loan program that partners with certified development
companies (CDCs). On Page 46, Kurt Chilcott of CDC Small Business Finance offers readers a primer on the 25-year
loan product and its potential usefulness in lowering a business owner’s monthly mortgage payments.
Joe Mardesich of Harvest Small Business Finance LLC returns as an author with his Page 57 article, “Niches Command
Attention.” Mardesich makes a compelling argument that loan specialists offer lenders and borrowers the kind of
expertise they won’t find with generalists, and these specialists are almost certainly earning more money.
On Page 79, another first-time author — Sean Tierney of A10 Capital — writes about the emerging opportunities
for investors and brokers in the single-family rental-home (SFR) market. Commercial mortgage brokers who’ve
yet to enter the SFR space, or those who work exclusively with small mom-and-pop investors, should look to
middle-market investors as demand for rental housing is expected to grow in the coming years, Tierney says.
One of the most important lessons a broker can learn is to prepare for and capitalize on the inevitable changes
in the mortgage industry. On Page 86, Garry Barnes of PW Partners Consultancy goes deep into exploring the
ways of pursuing flexible business and marketing plans. Brokers who distinguish themselves are constantly
willing to reinvent their strategies in order to retain clients and attract new ones, Barnes says.
Rob Diodato of York Commercial Finance polishes off the August issue on Page 96, where he writes about the
recent financing shift by traditional banks toward owner-occupied properties. This makes sense for banks,
Diodato says, as many lenders believe the end of the commercial real estate cycle is near, and they have become
increasingly conservative about investment-property deals.
We hope these articles prove valuable and informative for your business. Educational opportunities to advance
your career are certainly something to think about, even in the dog days of summer when kids are far from
Neil Pierson is editor of Scotsman Guide Commercial Edition.
Reach him at (800) 297-6061 or firstname.lastname@example.org.