Things continue looking up for the commercial mortgage industry, as the numbers for the second quarter indicate. Commercial/multifamily mortgage debt increased by $38.5 billion in the second quarter, according to the Mortgage Bankers Association (MBA), marking a 1.4% increase from the first quarter. Total commercial/multifamily mortgage debt outstanding stood at $2.72 trillion at the end of the quarter.
A large portion of this total stems from the rise of multifamily mortgage debt outstanding to $1 trillion. This is an increase of $23.6 billion or 2.4% from the first quarter.
“Rising property values are supporting increased levels of commercial and multifamily mortgage debt,” according to Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “The total amount of commercial and multifamily mortgage debt outstanding continues to grow at a strong pace, particularly on the multifamily side. For the first time ever, multifamily mortgage debt outstanding now exceeds $1 trillion and is growing at almost 10% per year.”
Since the commercial and multifamily mortgage industry continues to grow, now is a great time to expand your offerings as a commercial mortgage broker so that you can close these loans. Here’s how to get started:
- Educate yourself about the industry. Before you can begin closing commercial mortgages, you need to understand the business. Reading trade publications and joining online forums dedicated to commercial mortgages is a great way to get started.
- Build relationships with sources and lenders. Once you understand the industry, you can begin to reach out to potential referral sources and lenders. Talk to them and find out what they expect from you, then sell your skills as a broker. Make sure to explain how you can help them.
- Advertise yourself as a commercial mortgage broker. You won’t close many commercial mortgages if no one knows you’re in the business. Update your website, social media and print marketing materials (especially your business card) to let borrowers, sources and lenders know that you can close commercial mortgages.
Following these simple steps will get you on the path to expanding your business, closing commercial mortgage loans and earning additional income.