If you’re a broker looking to add more deals to your pipeline and earn more money, alternative commercial mortgages are a great place to start. When you work with the right lender and know how to find potential borrowers, it’s a simple and fast way to close more loans.
Here’s how to spot borrowers who need alternative commercial mortgages:
Small business owners and commercial property investors
When you begin working with borrowers who need commercial financing, you’ll be dealing primarily with individuals who own a small business or who make a living investing in properties. Whether you’re working with a business owner who’s looking to spruce up their property or an investor looking to purchase a new building, these borrowers come with unique needs, and it’s important for you to be ready to respond to them. Take the time to get to know them, their business and their goals so that you can place them with the right lender and get them the best commercial mortgage for which they qualify.
Borrowers with past credit issues or tax debt
Two of the most common reasons for commercial borrowers being unable to obtain bank financing for their property are less-than-stellar credit scores and unpaid tax debt. Banks are heavily regulated, so there’s very little wiggle room when it comes to credit exceptions, and you can’t use bank loans to pay off the IRS. In this situation, an alternative commercial mortgage lender who will listen to your borrower’s story in order to understand why they’ve dealt with credit obstacles in the past or have unpaid tax debt is your best bet in these situations.
Borrowers seeking small-balance mortgages
Another common roadblock for some commercial borrowers is that their mortgage request is too small for a bank. If you’re working with a borrower who doesn’t need millions of dollars for their business, you should look into alternative lenders who specialize in small-balance commercial mortgages. Not only will they be able to finance the request, but they’ll also be more likely to understand your borrower’s needs.
To close alternative commercial mortgages, you need to be able to spot potential borrowers. Look for small business owners and commercial property investors who’ve dealt with past credit challenges, unpaid tax debt or are seeking small-balance financing. These borrowers are the most likely to need an alternative commercial mortgage, and adding them to your pipeline will allow you to expand your business.