Any successful broker knows that a major component to succeeding in the small-balance niche of the commercial mortgage industry is the ability to find leads. When you’re just getting started as a commercial mortgage broker, it can be difficult to know where to find the leads that will build up your pipeline and lead to closings. However, once you know where to look, finding business becomes a lot less complicated. Here are the top five sources for small commercial mortgage leads:
Many banks aren’t interested in funding small-balance commercial mortgages because they’re not viewed as profitable. Borrowers who own small businesses often fit outside the bank’s criteria because of obstacles like past credit or tax issues. However, banks always want to maintain good relationships with their customers. Let your bank connections know that you can be a valuable resource for their turn-downs and work-outs. Read more in our previous post on finding commercial mortgages for non-bankable borrowers.
Right now, accountants are busy prepping their clients’ tax returns. Request a call or a meeting in early May and let them know you can help their clients who need nontraditional funding sources. Because accountants have knowledge of their clients’ financial situations, they’ll know which clients aren’t bankable and might need the services of a broker to find a small-balance commercial mortgage.
Many Realtors can tell you about a sale they lost because a borrower couldn’t get the commercial financing they needed. Let them know that you can provide alternative sources for small commercial mortgages.
Your current book of business:
Some of the clients you helped obtain a home mortgage also own a small business. Go through the 1003s you have on file, and let these borrowers know that you can help them acquire a small commercial mortgage should they need it.
Your current referral network:
The sources that refer residential deals to you are likely to know borrowers looking for financing for their commercial properties. Let them know that you’re now in the commercial mortgage business and that you can help their clients obtain the financing they need.
The above sources are all proven sources for commercial mortgage leads. Connecting with bankers, accountants and Realtors will allow you to do business with new commercial borrowers. Reconnecting with your residential borrowers and referral network can also lead to commercial financing opportunities. Reaching out to these sources will allow you to expand your pipeline, close more commercial mortgages and increase your income.