For brokers in the residential business looking to increase the number of loans they close and earn more, the small-balance commercial mortgage niche offers plenty of opportunity for success. This is an underserved market, and it’s simple to begin closing these deals if you know how to get started. Here are some tips for beginners:
Work with experienced direct lenders.
As a broker new to the small-balance commercial mortgage niche, working with experienced direct lenders benefits you in two major ways. First, these lenders will have a proven track record of closing loans, which is great for both you and your borrowers. Second, you’ll learn more about the niche from lenders who have been in business for many years, which will only improve your skills as a commercial mortgage broker.
Cultivate a strong network of referral sources.
In order to close small-balance commercial mortgages, you’re going to need to connect with borrowers. While you should make an effort to connect directly with small business owners, it’s also important to build and maintain a solid base of referral sources, like bankers, accountants and realtors, to keep your pipeline full. Additionally, you should let the sources that refer you residential deals know that you can secure commercial financing for their clients as well.
Accept a variety of borrowers.
Your success as a commercial mortgage broker will be dependent on the volume of loans you close. In order to close more deals, you’ll need to accept different types of borrowers. In addition to those that can qualify for bank or SBA funding, you should also work with non-bankable borrowers seeking alternative commercial mortgages. This will allow you to drive in plenty of business and earn more.
Advertise your services and skills.
Driving in commercial mortgage leads is going to be crucial to your success, so you need to market your services as a commercial mortgage borrower. Add small-balance commercial mortgage to the services you offer on your website. Email potential borrowers and referral sources about your new products. Post helpful tips and interesting news to your social channels. This will highlight your knowledge and credibility, which will lead to more business.
Closing small-balance commercial mortgages is an easy way for brokers to expand their business and increase their income. All you need to do is choose experienced lenders with whom you want to work, build and maintain good referral sources, work with a variety of borrowers and market your new services. The above tips will help you break into an underserved market and earn more with ease.