Posted by TinaCA on 11/8/07 4:28pm
Msg #220277

Commerical Real Estate

Does anyone know how to get into notarzing commmerical real estate deals?

Reply by Charles_Ca on 11/8/07 5:19pm
Msg #220287

Yes Tina, I am a commercial real estate & loan broker

What is your background? How flexible are you when it comes to documentation? Are you aware of the documentation involved and what isn't involved. The packages are very different from residential. RESPA doesn't apply, there is no HUD-1, no RTC, very few disclosures and the closing statement is quite different and there are many more escrow items, there are UCC-1 forms and bulk sale permits and you deal with a number of agencies in California, from the Franchise Tax Board to the State Board of Equalization. In some cases there are FTC forms and in other cases there may not be many forms at all. Every package is different, way different from every other. It is unfortunate because there have been several companies that have been trying to get residential loan agents to do commercial by trying to use similar documentation like 1003, it just doesn't translate. And the people you deal with, if you think homeowners can be tough wait until you get into a room of 5 buyers and each one has their own attorney and their own accountant. It can be very challenging, some closings take many, many, hours to complete. I like to do them at the escrow company when I can and use their closing agent who is usually a notary.

Reply by BrendaTx on 11/8/07 5:43pm
Msg #220291

Re: Yes Tina, I am a commercial real estate & loan broker

**there are UCC-1 forms ** Charles, you'll understand this...

And, as the doc preparer of these stinkers, NEVER, EVER assume that there are only two zeros at the front of the number just because that was what was originally assigned upon filing with the SOS. Um...five UCC amendments (which I think are UCC3's or is it the UCC5 - oh lawsy the numbers and confusion of it all) of UCCs x 30 transactions with two, not three zeros at the front of the filing number means 150 UCC1's kicked right back atcha. Gotta refile the little evil things...eeewww. Cut checks, blah, blah, blah....costs money to file 'em.

And there you are sitting on another 75 sets of those things ready to go because you like to be prepared so you gotta make five more, another 75 sets, send the helper to go make the right ones and then they get 'em mixed up, go back to square one.

These are the things that make the docs late sometimes...but I swear IT WASN'T MY FAULT.

Yes, transactions involving commercial lending can be oh so much fun. Especially all the cross-collateralization, the modifications, the updating of title, the M/Ms, multiple buyers, multiple sellers, the POAs, the aka's, the fka's, the...the...the...



Best advice about commercial lending work...apply to work with a lender who does those kinds of transactions and work there for two years, hands on. Most transactions here for commercial are closed inside the lender's walls or definitely within the title company, or attorney's office. I have only handled one transaction as the notary...with a lawyer at my elbow doing the talking and talking way over my head about entity docs, the assignments of rents, the corporate amendments, blah, blah, blah...franchise taxation...I tuned out and just did my notary work. Info overload.

Reply by Charles_Ca on 11/8/07 5:53pm
Msg #220292

Brenda, you make me laugh. I absolutely detest bulk sales.

I don't know if you do them the same way in Texas but bulk sales have got to be the biggest PITA of all especially coming in on top of a real estate tranaction. I do them grudgingly when real estate is involved but I absolutely refuse to touch business opportunities by themselves. I like the selling part but I wish I could get someone to do the paperwork afterwards, but it takes as long to explain what goes into the package as it does to just go ahead and put it in my self.

Oh, yeah, and multi-family properties are an altogether different thing with the escrow accounts and the estopple certificates and then you still have personal property involved so here come the UCC-1 filings again. You obvioulsy understand!

Reply by BrendaTx on 11/8/07 6:13pm
Msg #220294

Re: Brenda, you make me laugh. I absolutely detest bulk sales.

Charles, I can guarantee it that you understand it better than I do...I am learning it from my perspective one deal at a time and they are very different and so varied it is difficult to wrap my head around it even after many deals over the past year.

The moral of this story is that commercial lending is a totally different ballgame and the best position in order to be involved with those types of transactions (at least in Texas) is when you are working "inside" the transaction handlers walls. So many questions at the table which I can assure you, for all my jabbering on this board and maybe like I seem to know what's going on...I cannot even begin to think like I could be an iindependent commercial closer...if there is such a thing. Docs look so different in many instances...and they change from deal to deal here. No thank you...not without a lawyer there to dig up the answers for questions at the table.

Reply by EastTxNotary on 11/8/07 6:51pm
Msg #220295

I did a commercial closing recently...for a guy buying a bowling alley. It was scheduled through a SS. The docs were O/N to the BO and they were clearly flagged for signatures. There were 3 loans on this deal. I have a little experience with this type of thing as I worked in a factoring business for a while and was responsible for filing UCC's, searching for them, etc. Also, being in the retail business helps me to recognize many of the forms involved.

The main thing about this closing is that his LO DID answer his phone and it was obvious that the BO had been very well informed prior to the closing.

Reply by Charles_Ca on 11/8/07 6:56pm
Msg #220297

Having a business background helps immensely!

I get a lot of questions about how one gets into the commercial end and I truly believe that if you have owned a business you already have much of the background. If you have never owned a business you have no idea of what is involved in business transfers or encumberances.

Reply by BrendaTx on 11/8/07 8:37pm
Msg #220334

Re: Commerical Real Estate - good for you, Dot!

Man, all that chatting we do and you forgot to tell me that.

Reply by Teresa Kutz on 11/8/07 7:13pm
Msg #220314

If you are talking about small investments like housing, you would be fine. But on the other hand, multimillion dollar investments are a different animal altogether!

Unless you have bought or sold a big business or worked very closely with someone who has and you have been in and are comfortable in the boardrooms, I would not recommend you trying for that type of client!

Reply by jba/fl on 11/8/07 8:49pm
Msg #220336

This question was asked as there is an email going about

saying that you can notarize these deals for $6-700. I am sure this is why it was even asked. At least it was asked, hopefully, prior to taking the class, which I don't remember much about as I just deleted. I just don't need any more 'roads to riches'. LOL

Reply by Mary_in_VA on 11/8/07 9:08pm
Msg #220342

But does anyone know of specific title companies or SA's that deal with these types of transactions? I spent 20 years handling loans in attorney's offices and have plenty of commercial loan experience, which I would love to put to good use for the right price!

Thanks in advance!