Commercial real estate loan officer works with banks and other financial institutions, securing loans for companies who wish to invest in commercially zoned real estate. At times, the commercial enterprise may request a very large loan, requiring the loan officer to work with multiple lenders in order to secure the client’s loan package. It is typical for those who work as a one-person brokerage firm to function as a loan officer.
A bachelor’s degree in finance, economics, business or a related field is necessary before becoming a commercial real estate loan officer. Loan officers begin their careers by gaining experience in the banking industry or sales. Their skills include drawing up financial statements, business accounting and cash flow analysis. A recent requirement by federal law is obtaining a license. Under the federal guidelines, the applicant must have twenty hours of education in lending, pass an examination and successfully undergo a background check.
Job Description and Environment
Unlike most banking jobs, commercial real estate loan officers work outside the office while contacting potential businesses. They support their commercial clients with the loan application process. They gather information from all relevant sources, analyze the information and evaluate the results for best lending practices. The process includes compiling, coding, calculating, categorizing and verifying all the information or data that has been gathered.
Commercial real estate loan officers work directly with the public and must be personable in their approach. Their oral and written communications skills must be excellent as they will have to develop relationships outside their organization that can include representing their client to the public, the government and other sources. They must maintain these interpersonal relationships over long periods of time. They may be expected to attend social functions, host dinner parties and meet with the clients in restaurants and stores.
New Technology Requirements
Since commercial loan officers work in the field, laptops and cell phones may be relied on to assist them with arrangements, obtain current information and to maintain contact between their employer and potential clients.
Commercial real estate loan officers must have good computer skills. They will both hardware and software programs to write software, set up functions, enter data and process information. Their tasks also include transcribing, recording, storing and maintaining information in electronic or written form. They must appraise their information to determine whether it’s in compliance with all existing laws, regulations and standards.
Commercial real estate loan officers must have good analytical skills to determine whether the business is a good loan risk. They must verify all application information, check the borrower’s credit history and develop an awareness of any additional financial information the lender may require. In representing a client, the commercial real estate loan officer consults with the bank manager to determine whether the loan should be granted.
Commercial real estate loan officers work on a commission basis. Commercial real estate loans typically deal with investments, construction and development loans. The lower end of salaries for commercial real estate loan officers is $44,300 a year, with top paid officers earning $90,000 a year. The median range is $56,000 to $80,000 a year.