by a searcher
from University of North Carolina at Chapel Hill
in Charlotte, NC, USA
1h ago
50% of SBA deal flow is proprietary search?
An SBA Loan broker told me that 50% of her deals were off-market deals. Does this sound right to you all? Interested to hear what others think.
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by an intermediary
1h ago
in Charlotte, NC, USA
Yes, most brokers source their deals. Not sure why they would hold back half of them. There are pre-market deals that some brokers will pre-shop to 'insiders'. Let's them test interest and pricing before going to market.
By SBA I assume you mean sub-$5M deals? SBA is a lending program.
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by a searcher
1h ago
from Marymount University
in Charlotte, NC, USA
Yes. A sizeable portion of deals happens through the network. You know a guy who knows a guy. The moment people know you are looking for one, leads get routed to you. Also, once people know someone wants to sell, there are people willing to invest if it is a good deal.
Broker deals, especially BizBuySell leads, are ones that most likely went through a network that wasn't strong enough for someone to pick up, and then those languish for a long time until a search funder picks them up, since he doesn't have a network yet.
Good deals do come from the Broker list, but brokers do have a preferred list, so it will be offered to them first. What doesn't get picked up, then gets passed around.
At least this has been my experience.