Closing small-balance commercial mortgages for non-bankable borrowers is a team sport much like basketball. It requires a thorough knowledge of industry fundamentals, the right skills, the right plan, and the right people in place.
A commercial mortgage broker is often a critical part of the commercial mortgage team, so it’s important for you to understand how best to approach each commercial mortgage request.
Have a strategy.
As the broker, you’re both the coach and the point guard when it comes to submitting a commercial mortgage request. You need to be able to guide your borrower through the process, while also being a team player who gets the ball rolling on deals with your lender. Make sure you have a plan in place when you submit each mortgage request so that the process goes as smoothly as possible.
Know your team’s strengths.
This is applies to both your borrower and the lender with whom you choose to work. You need to be able to sell the positives of the deal and the borrower to the lender while simultaneously explaining to your borrower why this commercial mortgage through a particular lender is a win for them.
Set the right pace.
Basketball is a fast-moving game, but if players move too quickly, they’re likely to make mistakes. As the broker, it’s your job to set the pace of each deal. Many commercial mortgage borrowers need money fast, so it’s important to keep that in mind. However, don’t move so quickly that you miss important details that your lender needs.
Avoid foul trouble.
When it comes to non-bankable deals, there will likely be obstacles. These can range from a borrower’s credit issues and tax liens to a lender’s rate and terms. The best way to avoid creating additional challenges in the commercial lending process is to be upfront with your lender and borrower about what to expect from the deal.
Every small-balance commercial mortgage closes because there’s a dedicated team working to do so. As an important member of this team, brokers must have a plan for each deal, understand the strengths of all parties involved, set the right pace, and avoid creating additional challenges throughout the process. If you approach closing mortgages the way a basketball team approaches each game, you’ll score points (and a commission check) every time.