Whether you’re a residential broker or you stick to large-balance commercial mortgages, you should consider adding small-balance commercial mortgage to your products offerings.
To do so, you’ll need to build relationships with alternative lenders. Here’s how you can get started:
Learn about your lender.
The first thing you’ll want to do if you’re interested in the small-balance commercial mortgage niche is take the time to get to know an alternative lender you’d like to work with. You should learn as much as you can about their programs and process before contacting them. This shows that you’re serious about working with them and will allow you to know which questions you need answered before you can start doing business with them.
Get to know your borrowers.
In order for a loan scenario to move forward smoothly, you need to have all of the pertinent information about your borrower and request. Familiarize yourself with their financial situation and the reason for their loan request so that you can answer any questions your lender has accurately and promptly.
Know your value as a broker.
As an experienced financial professional, your skills are crucial in the mortgage industry. Brokers play an important role when it comes to connecting lenders and borrowers, so it’s important to discuss fees early and make sure you’re compensated fairly for your work. In order for you to succeed in the small-balance commercial mortgage niche, though, it’s essential to make sure you’re asking for a reasonable fee. Discussing this with a lender will allow you to learn how much commission money you can make and establish guidelines for what to charge each borrower.
Closing small-balance commercial mortgages is a great way for brokers to do more business. Getting to know alternative lenders and borrowers and understanding the value you bring to the process will allow you to expand your business and earn more.