Turning away borrowers who need commercial financing means you’re turning down additional income. While it might seem difficult for a residential broker to add commercial mortgages to their product offerings, it’s very simple as long as you take the right steps. Adding commercial to your existing line of products will allow you to expand your business and close more loans. Here’s how you can get started:
While your skills as a residential broker will make your transition into the commercial mortgage business fairly simple, there are some things you’ll need to learn. Be sure to keep up with industry news. Learn about different types of commercial mortgages. Speak with other commercial mortgage brokers and lenders and ask them any questions you have about the industry. Preparing yourself will go a long way toward establishing your credibility and will allow you to close more loans.
Let borrowers know you’re in business.
Before you can get started closing commercial mortgages, you need to let people know you’re a commercial broker. Be sure that your website, marketing materials and social media channels reflect the fact that you want to close commercial loans. You should also your current referral sources and past borrowers know that you can provide commercial financing.
Build up your referral network.
Your current network of referral sources will be valuable, but it’s a great idea to form relationships with additional sources. You need to sell your skills as a commercial mortgage broker and make sure you explain how your services will benefit them.
Choose the right lenders.
Finally, before you submit any commercial mortgage scenarios, you need to choose the right commercial lenders. Whether you’re focusing on a specific niche, such as small-balance commercial mortgages, or would like to close a variety of commercial loans, you need a group of experienced lenders whom you trust.
Spending quality time researching their commercial options will pay off for residential brokers. As long as you’re willing to learn about the industry, advertise your services and choose good referral sources and commercial mortgage lenders, closing these loans is a simple way to increase your business and your income.