If you want to increase your business and earn more, there’s a simple solution: small-balance commercial mortgages. For brokers who already have residential experience, closing mortgages for non-bankable clients in need of financing for their commercial properties is an easy way to expand your product offerings.
Here’s what you need to do to succeed in this niche:
Once you’ve decided to begin closing small-balance commercial mortgages, you need to understand the niche. Take some time to read industry news, participate in online forums, and even attend conferences to learn more about how to find and close these deals. Educating yourself about the commercial mortgage business will also help you to figure out how to use the skills you’ve developed as a residential broker in the small-balance commercial niche.
Connect with lenders
Without dependable lenders, you won’t be able to close any commercial mortgages, so it’s important to build partnerships as soon as possible. Speak with them and get a sense of their typical borrowers, their programs and guidelines, and what they expect in a submission.
Develop (and strengthen) relationships with referral sources
As a commercial mortgage brokers, you’ll be relying on referral sources like accountants, bankers and attorneys for a lot of your business. Let your current network know that you can now secure commercial mortgages for their non-bankable clients. When connecting with new referral sources, explain that you can be a resource for their clients seeking both residential and commercial financing.
Engage directly with potential borrowers
While referral sources will be a valuable resource for you, you should also engage directly with potential borrowers through your marketing. Whether it’s through print advertising, email blasts or social media posts, it’s important to keep your audience in mind and make sure that they understand the benefits of hiring you as their commercial mortgage broker.
The small-balance commercial mortgage niche is a great opportunity for brokers looking to bring in new business. All you need to do is learn about the industry, get to know lenders and sources, and start advertising your services as a commercial broker. With a little time and effort, you can begin closing small-balance commercial mortgages and earning more.