If you’re a broker considering getting into the commercial mortgage business, choosing a niche is both important and helpful. Specializing in an area or two will allow you to build the necessary expertise to succeed in the commercial mortgage industry as well as focus on the needs of your client base. Here’s what you need to do in order to select the right niche for you and your company:
Choosing your niche:
When you’re deciding on your company’s niche, you need to consider what kind of commercial loans you’re most qualified to handle. If you’re making the leap from residential to commercial, focusing on small-balance commercial mortgages is great way to get started, particularly if you’re a one-person shop or you own a small brokering company. The non-bankable borrowers who generally need these types of loans are an underserved segment of the market, and as long as you work with the right lenders, these mortgages are simple to close.
Choosing your lenders:
Once you’ve settled on a niche, you need to begin connecting with lenders who also specialize in the types of loans you want to close. Regardless of the niche you choose, you’ll want to work with lenders who have a lot of experience in the industry and a proven track record of closing commercial mortgages for their brokers. You’ll want to make sure that you’re working with direct lenders who offer reasonable terms within your niche. It’s also important to understand what lenders provide you in terms of service. Not every lender will handle underwriting and processing for their brokers, but some companies do. You should also have a couple of trusted lenders, as no one lender is going to be able to close every deal you bring them. Read our previous post on how to choose a small-balance commercial mortgage lender.
Marketing your services:
After choosing a niche and connection with lenders, you need to let borrowers know that you can help them obtain the commercial financing they need. Make sure that your website, social media channels and all of your marketing materials include the type of commercial mortgages that you specialize in closing.
Choosing a niche in the commercial mortgage industry will allow you to better serve your borrowers, referral sources and lenders, as well as build your credibility as an industry expert. You need to decide what kind of commercial mortgages you’re best qualified to handle, choose lenders to work with and market your business to increase leads. The small-balance niche in the commercial mortgage industry affords brokers many opportunities to make the connections necessary to closing more loans and earning more income.