For brokers looking to close small-balance commercial mortgages, time is money. So, it’s crucial that brokers don’t waste their time or their borrowers’ time on deals they won’t be able to place with a non-conforming commercial lender. Commercial mortgage brokers need to learn what makes a deal fundable and when to turn down certain deals.
Here are some things you can do to find great small-balance commercial mortgage requests:
Market your services appropriately.
To draw in the right kind of commercial borrower, you need to advertise your small-balance products. Whether it’s via social media or print advertising, make sure to include the fact that you can assist non-bankable borrowers in finding mortgages that will allow them to accomplish their goals.
Learn where to find small-balance commercial borrowers.
In order to close small-balance commercial mortgages, it’s important to know which referral sources can guide you in the direction of borrowers. Financial professionals such as bankers, accountants and lawyers all have clients in need of non-traditional financing. Connect with referral sources and let them know you can help.
Be certain that the deal fits your lender’s guidelines.
When evaluating a small-balance commercial mortgage request, it’s important to keep your lender’s funding parameters in mind. Non-conforming lenders are flexible, but it’s still important to discuss what they’re looking for in a commercial mortgage scenario.
Make sure that each deal makes sense.
Particularly for story lenders who work with non-bankable borrowers, every deal funded needs to clearly benefit the borrower in some way. For example, a borrower might be facing a bank balloon payment coming due. While their loan payment may increase if they go with a non-conforming mortgage, the mortgage still provides a tangible solution for their borrower. If the deal doesn’t make sense, a lender won’t be interested in funding it.
It’s important for brokers to be able to find good mortgage scenarios and to recognize when certain mortgage requests are going to be too difficult to place. Taking the time to market your services and connect with referral sources will allow you to seek out these deals. Discuss with your lender what they look for in a loan and learn how to spot early on if a deal doesn’t make sense. In the long run, this will allow you to close more small-balance commercial mortgages.