Closing small-balance commercial mortgages is a simple way for brokers to earn more if they understand how to approach the niche. This market offers many brokers the opportunity to expand their product offerings and earn more without much extra work.
If you’re looking to close more small commercial mortgages, here’s what you need to do:
Get to know your market.
As a broker, you need to develop an understanding of the commercial mortgage market, as well as the borrowers, that you serve. If you’re looking to close small-balance commercial deals, you’ll generally be dealing with small businesses owned by non-bankable borrowers. Get to know the common challenges these borrowers face in terms of their properties and financial situations and learn how to provide them with the service that they need.
Develop good relationships with lenders.
Another important piece of your success will be building partnerships with small-balance commercial mortgage lenders. Get to know lenders’ programs and the types of borrowers they serve. Ask them questions about their appetite for certain properties and what they need to take a look at loan scenarios. Take the time to understand their process, and work closely with them to make sure your deals get funded.
Understand each deal.
Nothing makes a lender happier than a borrower who knows the mortgage scenario they’re submitting inside and out. Provide the lender with all the documents they need to review the request. Be prepared to answer questions. Simply understanding the basics of a deal and a willingness and ability to discuss the scenario in depth goes a long way.
Small-balance commercial mortgages are a great way for brokers to increase their business and earn more. All you need to do is use your already existing skills as a residential broker and take the time to get to know your market, develop strong partnerships with lenders and understand the deals you submit. Taking these steps will allow you to thrive and will help your business to grow.