Once you’ve decided that you want to become a commercial mortgage broker and start closing loans within this niche, it’s important to start developing a robust referral network and securing leads. The first step in this process is to determine who you need to connect with to build up your pipeline and keep the commercial mortgage leads coming.
Here are some individuals in your community you should connect with as soon as possible:
CPAs are going to be some of your most valuable sources for commercial mortgages. They know their clients’ financial situations and who can and cannot qualify for a bank loan. Make sure local accountants are aware of your services as a commercial mortgage broker and that you can secure financing for their non-bankable clients.
Every realtor has stories about sales they’ve lost because a prospective buyer’s funding fell through. This is particularly true with regards to buyers who can’t obtain traditional financing. Reach out to the realtors in your area and explain that you have alternative funding sources for their non-bankable clients who are seeking to purchase commercial properties.
While banks do provide many small business owners with loans, there are a substantial number of borrowers who won’t be able to meeting the bank’s financing requirements. However, bankers will still want to preserve their relationships with these clients, and being able to recommend a broker who can secure an alternative commercial mortgage can go a long way. Visit your local banks and explain that you can do just that.
Your referral network for residential deals
The sources who point you in the direction of residential borrowers are also likely to know individuals who need small-balance commercial mortgages. Touch base with these people and let them know you can secure financing within that niche.
Past residential borrowers
It’s likely that some of the borrowers that you’ve helped obtain a home mortgage also own commercial property. You should be able to find this information on the 1003s you have on file. Send an email or place a quick call to let these borrowers know that you can help them secure a commercial mortgage for their small business if they ever need one.
Building a great referral network starts within singling out the best sources for small-balance commercial mortgages. Knowing where to look for these deals is the first step to closing more loans and earning additional income. You need to connect with financial professionals in your area, as well as past borrowers to start developing a strong pipeline of deals in order to succeed.