Despite the fact that rental demand is expected to increase by over 6 million units through 2016, and commercial and multifamily lending is expected to grow in 2014, non-bankable borrowers looking for small multifamily mortgages remain an underserved market in the commercial mortgage industry. Given that homeownership is declining, consumer confidence remains low and credit is still tight, now is a great time for residential mortgage brokers to get involved with small multifamily mortgages for non-bankable borrowers. Here’s what you need to do to begin increasing your income with small commercial mortgages for multifamily properties:
- Get to know the market. In order to close small commercial mortgages for multifamily properties, you’ll need to learn about the market. Read articles about the multifamily and rental industries. Join and participate in social media groups focusing on multifamily lending. Speak with brokers and lenders who routinely fund small multifamily mortgages.
- Reach out to former borrowers. Look through your old 1003s and contact past customers who own multifamily properties. Let them know that if they need small commercial mortgages for multifamily properties, you can help.
- Contact your referral sources. Get in touch with all of the bankers, accountants, realtors, lawyers and other industry professionals with whom you already do residential business, and let them know that you can help their non-bankable clients obtain small commercial mortgages for multifamily properties.
- Connect with small commercial mortgage lenders. Before you can close any small multifamily mortgages, you need to contact small commercial mortgage lenders. It’s important to research these lenders and to speak with them about what they expect from the brokers with whom they do business.
Getting involved in the multifamily mortgage business now is a smart move because of the increases in demand for these mortgages and for rental properties. Working with borrowers who need small commercial mortgages for their multifamily properties is a great opportunity to increase your income and to help fulfill the market’s growing needs.
If you have a non-bankable borrower looking to finance a multifamily property, call 800-262-2739 to see how APEX Mortgage Corp. can help.