The commercial corner - Five things you can do right to recharge your businessMike Boggianoresidential to commercial, small-balance commercial products,
The Mortgage Press is pleased to present "The Commercial
Corner," a monthly column by Mike Boggiano of Silver Hill Financial
LLC dedicated to answering your questions about the commercial
mortgage marketplace. If you have a question that you would like
answered in a future installment of "The Commercial Corner," please
e-mail
[email protected].
After several record years of refinance business, many
residential brokers find themselves in the same spot - looking to
replace the income from a once-sizzling sector of business. This
month's column - a positive twist on common mistakes - may be just
the information you need to take your business to the next
level.
Q: I'm a residential broker whose business has begun to
level off, and I need to do something different to keep it
thriving. Do you have any suggestions?
A: There are numerous business tactics that salespeople
can apply to re-energize their businesses. Based on the current
landscape in the marketplace, it's a good time to examine new ways
to diversify. Here are the top five suggestions for a residential
mortgage broker facing a challenging environment - things you can
do right.
Diversify
Studies have shown that borrowers feel that brokers offering
residential and commercial products are more credible and more
professional than those offering residential loans only. With new
programs in the marketplace that aim to simplify the lending
process, the commercial field (particularly the small-balance
category for loans up to $1 million) is not as daunting as it may
have once seemed. Explore what's available and you might be
surprised. The added benefit of going commercial is that when deals
are done properly with the right lender, they can make you more
money with fewer closings.
By offering small-balance commercial products in addition to the
residential lineup you already know, you will be viewed as a
resource for a wider range of people and have an advantage over the
competition. Look for a small-balance commercial program that makes
the transition easy for youone with underwriting guidelines similar
to residential, a familiar process and training and marketing
tools. Also, ask about program features that help you attract
borrowers in a rising interest rate environment, such as
interest-only, declining fixed rate programs and other unique
features that benefit you and your borrowers in a competitive
market.
Become an expert and an advisor by educating yourself
about the lenders and programs available
Be more than just a broker to your customers. Position yourself as
an expert advisor who can present all of the available or
appropriate options for their financing needs. Experts speak at
professional events, author articles and align themselves with
influential referral partners. Advisors help customers make
educated decisions by presenting and offering an array of options
to fit their needs. They also point out opportunities to build
equity and make smart financing decisions. For example, you might
create a newsletter that presents pertinent information to
customers through short articles and news briefs, or you could team
up with another professional in your circle to provide a guest
column in their newsletter. Seek out opportunities to be an expert
and an advisor, and become a one-stop resource for borrowers.
Develop a system for understanding your borrower's
needs
Review your existing files for clients who already own commercial
properties. Think about deals that you have previously turned away
or referred somewhere else because you did not offer the
appropriate product. Ask a consistent list of questions when you
sit down with a borrower. Always include an inquiry about other
types of financing needs in addition to the deal at hand. Identify
at least five lenders that provide different niche programs in
order to fully service your client and sustain the
relationship.
Network!
Do this not only to meet or connect with prospective borrowers, but
also to learn more about what's available in the marketplace.
Innovative lenders have developed programs that provide profitable
alternatives to many of the issues youre facing. Learn about other
lenders and the products available by attending trade shows and
events sponsored by industry associations.
For prospecting, consider attending small-business networking
events to meet new borrowers. Expand your referral network to
include contacts that specialize in commercial transactions, such
as real estate agents, CPAs, attorneys, title companies and more.
With innovative programs in the small-balance commercial
marketplace, this is a good time for small-business owners to
investigate purchasing office or warehouse space as opposed to
continuing to rent or lease. Reach out to small-business owners and
investors for commercial lending opportunities.
Engage in marketing or tweak your existing marketing
efforts
Create one-page flyers that advertise your business and what you
offer. Send postcards or letters, do some cold calling and place
advertising in local business publications. Expand your business by
offering both commercial and residential loans and add this
information (or information about other products you offer) to all
of your marketing materials. Also, dont forget to include these
products on your Web site, business cards, e-mail signature block
and telephone hold messages.
Mike Boggiano is senior vice president, national sales
manager for Silver
Hill Financial LLC. He may be reached by phone at (877)
676-1562 or e-mail
[email protected].
