The commercial corner: Sourcing commercial business: Top tips for finding commercial deals once you've decided to diversifyMike BoggianoCommercial mortgage originations
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].
This column has touted many of the benefits of expanding your
business and increasing your income by offering commercial
products, particularly small-balance commercial programs. This
month's Q&A will be of interest whether you've made a
commitment to diversify or are still considering just how to make
it happen.
Q: I've decided to diversify my business by adding
commercial products and have identified the commercial lenders and
programs I will begin to offer. Where do I start, in terms of
sourcing customers, and how do I get the word out?
A: Start with the basics. First, develop your
brand to include commercial. Add commercial mortgage messaging to
your marketing and advertising materials. For example, business
cards, voicemail, an e-mail signature block, on-hold messages and
advertising in any other medium should reflect your commercial
offerings. If you have a Web site, add informative content that
commercial prospects will find valuable, such as when to consider a
commercial purchase or refinance, how the process works, what types
of documentation are necessary and appraisal information. Finally,
create a flyer or similar handout for distribution at events or
directly to commercial property owners, real estate agents and
other referral sources.
Q: How can I leverage existing client relationships for
commercial opportunities?
A: Here's an important point that you don't
want to miss. The borrowers you know and do business with are
oftentimes the very same borrowers in need of commercial financing.
Look no further than your closed loan files, reviewing them for
information that may indicate a commercial need. For example, take
careful note of professional profiles; keep an eye out for doctors,
lawyers, dentists and other individuals who may be interested in
purchasing space for their practices. In fact, any business owner
may benefit from purchasing office space, and those who already own
their locations may need or want to refinance. Another good source
of information about commercial property owners is the real
estate-owned section of the 1003 Uniform Residential Loan
Application. Your commercial lending partners may also be good
resources in helping to identify other techniques for uncovering
commercial business within your existing client base.
Q: What are the best referral sources for commercial
business?
A: Not unlike residential, your alliances with
related professionals can provide a mutually beneficial system for
leads and referral business. Build on your strategic partnerships
with professionals, such as real estate agents, property
appraisers, CPAs/accountants and financial advisors. Let them know
that you are now offering commercial products, and identify
opportunities to leverage referral business. In addition, consider
forming new relationships that align with a commercial need,
including, but not limited to, commercial contractors/developers,
banks, credit unions, investment clubs and related associations
(apartment owners, small-business owners, etc.).
Q: Aside from existing clients and referral sources, do
you have additional advice for finding new commercial
customers?
A: Yes! Create a plan of action to seek out
commercial prospects. Suggested tactics include searching real
estate listings online and in newspapers, listing your business in
local online directories, developing relationships with area
chambers of commerce and researching small-business owners in your
market for a targeted list of leads.
Engage in marketing to promote your commercial offerings. After
you've handled the basics (as discussed in the first answer), map
out a plan to actively reach prime prospects. Direct mail, such as
postcards, letters and informational flyers, can be effective; work
with a list vendor who can recommend a list that fits with your
goals. E-mail marketing is another viable option; just be sure to
comply with federal regulations. Purchase print advertising in
classified sections and the real estate portions of area newspapers
or business journals. Check with your commercial lending partners
about the tools that they might have available to you, as well. An
innovative lender, for instance, may provide marketing support in
the form of phone scripts, sample letters and e-mails and templates
for flyers, ads and postcards. Some may even offer customized
options. Don't overlook these resources and tools.
Finally, if you've decided to specialize in a particular
commercial niche, be sure to tout the key messages that apply based
on the program features, property types, loan limits and borrower
profiles specific to your offerings. Commercial opportunities exist
in small towns and big cities across the country. With a smart plan
and follow-through on your part, it won't be long before you're
closing deals.
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].
