A broker’s pipeline of deals can determine their success or failure in the commercial mortgage industry. You need to constantly be seeking out new deals and they need to be the right kind of deals. If you’re new to the industry, it can be difficult to determine how to expand and strengthen your pipeline. Here are some tips to get you started:
Market your services.
Before you can take on borrowers seeking small-balance commercial mortgages, you need to advertise your services as a commercial broker. Make sure your website, business cards and social media channels all state that you can close commercial mortgages. Simply getting the word out will go a long way toward developing a strong commercial pipeline.
Seek out past borrowers.
A great way to add volume to your pipeline is to contact clients you’ve worked with in the past. Go through your files and contact your residential borrowers who own and operate small businesses. Let them know you can help them to obtain commercial financing for their commercial property should the need arise. You can get some more insights in our previous post on seeking referrals from past commercial mortgage clients.
Develop strong relationships with referral sources.
It’s important for commercial mortgage brokers to be able to reach borrowers directly, but a strong referral network is also a crucial component to success. Reach out to CPAs, attorneys, banks and real estate agents in your network and let them know you can assist their clients who need commercial financing. Read more in our previous post on connecting with commercial referral sources.
Learn when to turn down a deal.
The strength of your pipeline isn’t determined by volume alone; it’s also determined by the quality of each of the deals you receive. If the mortgage doesn’t fit your business or if there are serious issues with the loan, the best course of action is often to walk away.
Closing small-balance commercial mortgages is a great way for residential brokers to increase their income. These deals are simple to close, but it’s important to have a steady pipeline in order to succeed. By following the tips above, you’ll strengthen your pipeline and your business.