Where can I find small commercial deals?Ari Millermarketing, finding sources, small commercial lending
If you've been keeping up with my articles, you've heard me talk
about how terrific portfolio/small-balance commercial lending can
be, and maybe I convinced you or at least made you curious.
To recap, here are the top reasons why everything about small
commercial lending sounds great:
- There's very little competition from other brokers
- The borrowers aren't as rate-sensitive
- You can make more money
- There are no predatory lending, covered loans or Section
32s
- The lender takes care of most of the processing all you have to
do is find the deal
The big question is, what do you do now? Where do you find these
small commercial loans and start making you fortune? I've got some
ideas.
Self-employed past customers
Most self-employed customers either own, or would someday like to
own, a small commercial property. Since they already know and trust
you, they should be very receptive to hear what you have to say
about commercial financing.
Real estate investors
Most real estate investors don't care if they buy a residential or
commercial property, as long as they're getting a good deal. They
generally limit themselves to residential properties because they
don't think they can get commercial financing.
Accountants
Most small accountants specialize in self-employed borrowers. Set
up an appointment and ask them if they would recommend your
services to their small business owners.
Small commercial real estate agents
There aren't many brokers who handle small-balance commercial
loans. Look in the newspaper for the real estate agents that
specialize in them. Since they're ignored by most other loan
officers, they'll be happy to talk with you.
Chambers of commerce
Most people who join their chamber of commerce are small business
owners. Start going to meetings and spread the word that you
finance small commercial and mixed-use properties.
Business associations
Local business associations are made up of what kind of members?
You guessed it: small business owners who either own, or would like
to own, a small commercial property.
Direct mail
Buy a list of small commercial properties and let the owners know
what you do.
Telemarketing
Contact local business owners and let them know that, finally,
someone is here who understands their needs.
Stop by and walk in
Visit every restaurant, pizzeria, Chinese food restaurant, bakery,
bagel store, bar, tavern, nail salon, barber shop, hair dresser,
tattoo parlor, deli, jeweler, dry cleaner, insurance agent, used
car lot and convenience store between your office and your home.
Since most of these stores tend to be on the same streets, it makes
your job that much easier. Have you ever been to any of these
places?
Now that you have these new ideas about where to get
small-balance commercial loans, go do what you do best go find some
deals!
Ari Miller is vice president of Gelt Financial Corporation,
a private portfolio lender based in Southampton, Pa. He may be
reached at (215) 357-4955, ext. 275 or e-mail
[email protected].
