For residential brokers looking to earn more, small-balance commercial mortgages are a great opportunity. This underserved market is full of borrowers who need assistance in finding the right mortgage for their business’s needs and are willing to pay for a broker’s services.
Here’s what you need to do to get yourself ready to offer small-balance commercial mortgages:
Learn about small-balance commercial mortgages.
Before you can begin to close these types of mortgages, you need to educate yourself about the industry. There are some major differences between residential and commercial mortgages, including rates, terms, price of appraisal and closing timeframe. Learning opportunities for residential brokers looking to learn about small-balance commercial mortgages include webinars, conferences, industry publications and forums, and commercial lenders themselves.
Connect with lenders and ask about their products.
As you learn more about small-balance commercial mortgages and the commercial industry in general, you should reach out to lenders. These are connections you’re going to need to make, and understanding what they can offer you and your borrowers is crucial to closing deals. Ask them about their products and the type of borrowers they serve so that you bring them the best possible leads.
Get to know the borrowers who need these mortgages.
In order to succeed as a commercial mortgage broker, you need to understand the type of borrowers who need non-conforming financing solutions. Generally, these borrowers are going to be small business owners with credit or tax issues, property types that banks aren’t interested in funding, or people who simply need a mortgage faster than a traditional lender can provide one. Knowing your typical borrower will help you cultivate a strong pipeline and close more deals.
Market your services.
Once you’re ready to start closing small-balance commercial mortgages, start to market your new product. Include the fact that you close these types of deals on your website, on your social media channels, in your emails, and in any other marketing materials you send out to potential customers and referral sources.
Closing small-balance commercial mortgages is a simple way to expand your product offerings and earn additional income. All residential brokers need to do is take the time to learn about the industry, connect with lenders who specialize in these deals, understand the typical borrower, and let customers and referral sources know that they have outlets for small-balance commercial mortgages. Follow the steps above and you’ll be closing these deals in no time.