Advice for budding brokers: be creative
Sharone Sabar of Marcus & Millchap has a little tip for new financial market brokers: get creative. While creativity has always been a staple in trade deals with lenders, the pandemic has highlighted the importance of working on the structure of the deals and understanding the nuances that could help and hinder a deal.
“My main advice to young professionals is to understand the fundamentals of the business. To be good, you have to be creative, especially in tough times like today, ”Sabar, senior managing director, capital markets at Marcus & Millichap, told GlobeSt.com. “You have to be creative in finding mitigating factors as to why banks should and should not enter into transactions. “
Understanding the deal also requires building relationships with lenders to find out what each lender wants and what they don’t. Relationships with lenders are just as essential as relationships with customers. “For example, preparing complete loan packages for lenders and explaining the deal in detail builds you trust and credibility with lenders, so when you approach them with a deal, they prioritize you because of what you have prepared for them, which makes the lender’s job easier to accept the loan, “says Sabar.” It makes it easier for them, and you can negotiate better deals for your client, and they move faster for you to the end, what you need in this environment Relationships are essential.
Sabar’s colleague Michael Derk, also senior managing director of capital markets at Marcus & Millichap, says relationships don’t end with clients and lenders. New brokers should find a mentor and learn as much as possible. “I would advise young professionals entering the debt and equity finance business to team up with a well-established professional who is known in the market,” says Derk. “Someone who can work through the structuring of transactions and recognize the pitfalls ahead, to be proactive for clients instead of being reactive. Don’t do it alone. Team up with a strong professional who has been in the industry for a long time for guidance.