Enjoy access to a free NMLS renewal class when you attend an in-person event.
marketing, 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.
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.
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.
Buy a list of small commercial properties and let the owners know what you do.
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!