A Simple and Systematic Way to Grow Your Business
Sofia Capital Ventures welcomes referrals. Our relationships are our business. If you are a real estate, mortgage, or other financial professional with your own client base, we offer you the opportunity to provide added value to your clients through our referral program. If you are seeking entry into commercial lending, becoming a Sofia Capital Ventures Referral Partner is a great way to get started and learn the industry while focusing on building your own client base
What we do
Before you decide to join our referral team, we would like you to understand our business model. Sofia Capital Ventures (SCV) has established relationships with a small number of very active private, direct lending sources. These sources represent billions of dollars available for commercial real estate loans. This money comes from private equity funds, private individuals, private family banks, private family trusts, and, in some cases, privately-held insurance companies.
In all cases, SCV represents portfolio lenders. What this means for you and your clients is that our lenders have greater latitude and flexibility in working with a borrower to make a loan that fits the borrower’s needs. That doesn’t mean that every loan will get funded, but it does mean that these lenders will consider each serious request on its own merits and offer their best terms to meet your client’s needs.
Having said that, the private lenders we work with still have standards. They do not offer 100% financing. Nor do they lend to individuals who have no cash, assets or “skin in the game.” In deciding to make a loan offer, they look first to the cash-flow of the property, second to the cash flow of the loan sponsor, and lastly to the business plan for growth/appreciation leading to the borrower’s exit strategy.
Through its affiliate lenders, SCV offers a wide variety of types of funding, from “small cap” (less than $500k) to over $100 million; from hard money to bridge loans as well as conventional commercial mortgages. On conventional loans, the rates are competitive with most banks and commercial mortgage lenders. Some of our lenders can do SBA loans, and we even have a private source that will lend up to 90% LTV without the SBA guarantee.
In all cases, our loan inquiry process begins with a two-page intake form that is like an executive summary of the loan request, including a profile of the property being offered as collateral, the borrowing entity and the project “sponsors.” Each loan inquiry undergoes internal review to determine the best lender placement. The intake form is then sent to the lender and we almost always have a response in a day or two. If there is lender interest, an initial package is submitted. The lender will respond with a loan offer in the form of a Letter of Interest (LOI) or Conditional Loan Approval, depending on the lender. If the borrower accepts the offer, then the loan goes into underwriting and moves toward closing.
How we work
There are two things that are important to understand about this process. 1) At some point in this process, the lender will want to communicate directly with the borrower, and in most cases, we will take a secondary role of making sure that all paperwork and communication goes smoothly. 2) In almost all cases, SCV gets paid by the lender. This means, we do not have a fiduciary responsibility to the borrower, nor do we necessarily require a fee agreement with the borrower. SCV represents the lender’s interests to the borrower and helps borrowers present themselves professionally to maximize their likelihood of receiving funding.
How you work
There are two types of referral partners who work with Sofia Capital Ventures. In some cases, licensed professionals are prevented from accepting commissions from non-licensed parties. We still would like the opportunity to work with you and help you offer increased value to your clients. In most situations, you are either a non-licensed professional or in a situation that allows you to receive referral fees. We would like to help you enhance your business and/or build your referral client base.
A. Non-Compensated Referrals
To make a referral to Sofia Capital Ventures in situations where you cannot accept payment (this may apply to certain licensed professionals.)
After introducing us to your client, we will work directly with the client and the lender. We will keep you updated throughout the process, as a courtesy. You will be providing a “value-added” service to your clients that enhances your professional status.
B. Paid Referrals
If you are seeking to earn a referral fee by becoming a Sofia Capital Ventures Referral partner, we ask you to do a little more of the work. Here’s what you do:
- Send us your client’s basic loan request, using our loan inquiry format, to enable us to pre-screen the deal.
- Collect the completed Intake Form from your client.
- Introduce us to your client by phone, either during the Loan Request Review, or prior to that call.
- Stay involved throughout the loan process to make sure your client is on board.
- To be eligible to become an SCV Referral Partner, we ask that you participate in a 1-hour training call that will acquaint you with the basics of our loan review and underwriting process. You will have an opportunity to address any questions at that time.
Referral Fees
Sofia Capital Ventures pays referral fees of 20% of the Company’s success fee for each loan you refer us that closes. In most cases, SCV earns a 1% success fee when a loan closes. This may be reduced to ½% success fee on loans above $10 million, as allowed by the lender. With SBA loans, there is a cap of a total of 1% origination fee, which will be split between the lender and SCV.
IMPORTANT NOTE: If you negotiate and sign a fee agreement with your client prior to introducing that client to Sofia Capital Ventures, and expect to get paid by your client at closing, you cannot also earn a referral fee from Sofia Capital Ventures.
Benefits of Partnering with Sofia Capital Ventures
Our goal is to help you enhance your bottom line and provide value to your clients. Additionally, you may benefit from participating in our training program and on-going deal evaluation process. We can also provide you with articles and advertising for your own e-Newsletters and other communication with your clients.
Accountants: You will have the ability to help secure the financial future of your clients by providing alternatives to bank lending and increase retention.
Commercial Real Estate Brokers/Developers: Turn your prospects into actual buyers by offering them the ability to put as little as 10% down, longer amortizations and below market fixed rates on purchases, refinances and construction projects.
Bankers: Keep your depository business, thus preventing customers from turning to competitors.
Other Advantages
Provide better (more consultative) advice to your small business clients
- Fast service
- No more frustrated clients
- Benefits to Your Clients
- Fanatical customer service! Your clients can borrow to pay off taxes, consolidate debt, help with cash flow, and cover payroll and more. Moreover, because we know business owners are more than their credit score, a strong cash flow from the business or property can help them qualify for the funding they need.
CONTACT US to find out more about this exciting new program and how it can benefit you and your clients!