If you’re turning away borrowers who can’t obtain financing, you’re turning away income. The alternative commercial mortgage industry is an opportunity for brokers who are interested in bringing in new business. It’s an under-served market that more brokers should consider.
If you decide you want to work in this niche, this is what you should be looking for in an alternative commercial mortgage lender:
Lending to non-bankable commercial borrowers is a balancing act, and you’ll want to work with lenders that have plenty of industry knowledge and skill. A lender that’s been in business for many years is a good bet because they understand how to handle challenges and have a proven track record of closing non-conforming commercial mortgages.
Direct portfolio lending
When choosing lenders, your best bet is one who lends direct and nationwide. This will allow you to close outside your locality. Choosing a lender who portfolios their loans is also a great choice, since you can sell the fact that your borrower will experience consistency in customer service throughout the life of their loan as a pro.
Working with non-bankable borrowers means working with alternative lenders who are willing to listen to your borrowers’ stories and take the time to understand their financial situation. Choose an alternative commercial lender who has a track record of looking at deals on a case-by-case basis and offering the best possible product for your borrower.
Non-bankable borrowers are an under-served segment of the commercial mortgage market that present a wonderful opportunity for brokers seeking to expand their business. It’s important to select direct lenders with plenty of experience and flexibility to work with in order to successfully close loans and earn additional income.