Whether you’re a residential broker who comes across the occasional commercial property or a commercial broker interested in expanding what you can offer to borrowers, small-balance commercial mortgages are a great way to increase your income. However, before you get started closing these loans, there are some things you need to do.
Here’s how you can get started:
Learn about commercial mortgages.
Before getting started, take some time to educate yourself about the business. Read industry publications, attend webinars and reach out to mortgage professionals to learn as much as possible about small-balance commercial mortgages. Learn more in our previous post about how to position yourself as a commercial mortgage expert.
Contact your referral network.
When you decide to begin brokering small-balance commercial mortgages, one of the first things you should do is contact your current referral sources. Let them know you can offer financing solutions for non-bankable borrowers seeking funding for their commercial properties. Bankers, accountants, real estate agents and attorneys will all have clients who could benefit from a small-balance commercial mortgage.
Connect with lenders.
If you’re looking to get involved in this niche of the mortgage industry, you need to form relationships with small-balance commercial lenders. Contact lenders and ask them about their products and what they require from their brokers in order to close loans. Learn what you can charge on each deal and if YSP is available. Lenders will be your most valuable resource when it comes to learning about the commercial mortgage business and how you can increase your income with these loans.
Draw in leads.
In order to close small-balance commercial mortgages, you need to seek out borrowers looking for financing. Make sure that all of your marketing materials specify that you broker small-balance commercial mortgages.
The small-balance commercial mortgage industry is a market full of opportunity for enterprising brokers. If you take the time to learn about the business, connect with lenders who can help you make your mark and let your referral sources and borrowers know you’re in the business of closing commercial mortgages, you’re setting yourself up for success. Small-balance commercial mortgages are a great way to diversify your product and your income stream.