Commercial and multifamily mortgage debt increased by $40.4 billion in the first quarter of 2015, according to the Mortgage Bankers Association. This marks a 1.5 percent debt increase over the fourth quarter of 2014 with total commercial/multifamily debt outstanding at $2.68 trillion at the end of the first quarter.
“Strong first quarter originations boosted the level of commercial and multifamily mortgage debt outstanding,” according to Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “Multifamily mortgages continued to grow even more quickly than the market as a whole.”
As the commercial mortgage market continues this upward trend, it’s a great idea for residential mortgage brokers to consider adding commercial mortgages to their product offerings. Small-balance commercial loans in particular can be a quick and simple way to increase your business and your income. Here’s how to get started:
Advertise your commercial services.
Once you’re ready to start closing small-balance commercial mortgages, you need to begin marketing your services. Let your prior customers and referral network know that you can work with borrowers who need financing for their commercial properties.
Seek out commercial sources.
You current referral sources will probably know plenty of potential commercial borrowers, but it’s a great idea to branch out to find new referral sources as well. Get to know bankers, accountants, realtors and lawyers in your area, as well as small business owners who may need commercial financing. Don’t forget to utilize social media to form and solidify these connections as well.
Work with the right lender.
When you decide to begin serving borrowers who need small-balance commercial mortgages, you need to choose the best possible commercial lenders with whom to do business. Be sure to research any companies you’re interested in working with and get to know their company and submission requirements thoroughly.
As the commercial and multifamily mortgage industry continues to grow, it’s important to consider adding commercial products to your business. Small-balance commercial mortgages are a great way for mortgage brokers to increase their company’s business while allowing them to continue focusing on residential or larger-balance commercial mortgages. Passing up on this growing market is passing up on additional income; it’s a simple as that.