In the current residential mortgage market, it can be difficult for brokers to find solid footing. Because of this, it’s beneficial for brokers to expand their product offerings. A great way for residential mortgage brokers to do this and to increase their business is to begin closing small-balance commercial mortgages.
Here’s how you can get started:
Learn about the industry.
Before you begin seeking out small-balance commercial borrowers, it’s a great idea to educate yourself about the industry. Read news about commercial mortgages, join online groups and forums, attend webinars and seminars and connect with industry professionals who are willing to discuss the industry with you. This will help you to better understand small-balance commercial mortgages and what is expected of you as a broker.
Connect with lenders.
The next thing you’ll want to do is begin reaching out to small-balance commercial mortgage lenders. Not only will these lenders be incredibly important when it comes to your success closing loans, they’ll also be a valuable educational resource. Be sure to discuss each lender’s submission guidelines with them before submitting a mortgage request.
Reach out to your referral network.
It’s important to contact your current network of bankers, accountants, lawyers and real estate professionals and let them know you can secure their clients financing for small commercial properties. These connections have served you well on the residential side, and they will know who needs commercial financing as well.
Advertise your new services.
Once you’re ready to begin seeking out borrowers, it’s time to market yourself. All of your promotional materials should state that you close small-balance commercial mortgages, including your website and social media accounts. Make sure to choose marketing channels that will reach the clients you want to worth with.
The small-balance commercial mortgage market is full of opportunities for residential brokers. By using the skills you’ve already acquired, learning about the industry, connecting with the right lenders and getting the word out about your new services, you’ll set yourself up for success and earn additional income.