An MBA survey released last week showed a 34 percent increase in commercial and multifamily mortgage originations between the third and fourth quarters of 2013, according to Mortgage Professional America (MPA). The survey also showed that commercial and multifamily originations in the last quarter of 2013 were 16 percent higher than Q4 of 2012. Commercial and multifamily mortgage originations were also up overall for 2013, rising 15 percent from 2012.
Given the increase in originations for commercial and multifamily properties, now is a great time for brokers to get involved in the small commercial mortgage lending industry. Not sure how to begin working with borrowers who need small commercial mortgages? Here’s what brokers need to do to benefit from this increasing demand for commercial and multifamily mortgages:
- Let others know you’re in the commercial mortgage business. Make sure you specify on all of your marketing materials that you can help borrowers obtain the small commercial mortgage loans they need.
- Offer to help former borrowers. Look through the 1003s or applications you have on file. If you’re a residential broker, some of the borrowers that you helped obtain home mortgages will own commercial or multifamily properties. Reach out to them, and let them know you can help them find small commercial mortgages. If you’re a commercial broker, contact former borrowers and let them know you’re still in a position to help them should they need additional commercial financing.
- Contact your referral sources. Get in touch with all of the bankers, accountants, realtors, lawyers and other industry professionals with whom you already do business, and let them know that you can help their clients obtain small commercial mortgages.
- Go directly to small business owners. You can do something as simple as handing out fliers in the commercial districts in your area, or you can do something as involved as joining your local chamber of commerce. Either way, it’s important to let local small business owners know that you can help them with their small commercial mortgage needs.
Whether you’re a residential broker looking to begin working in the commercial mortgage industry or a commercial broker looking to drum up more business, the above tips can help you find and close more commercial and multifamily mortgages. All you need to do to get started is market yourself as a commercial broker, reach out to existing sources and former borrowers, and make contact with potential clients.
If you have a small commercial or multifamily loan scenario that you would like to discuss, call APEX Mortgage Corp. at 800-262-2739.