3 Ways to Find Commercial Mortgage Leads
Re-engage referral networks
Ask any originator and they’ll tell you that their primary sources of leads are the referral partnerships they’ve cultivated over the years. The good news is that an increased focus on commercial lending won’t require a whole new referral network. Instead, initiators can create business opportunities by having new conversations with their existing partners.
Banking relationships can be the perfect starting point. Banks have earned a reputation for adopting fairly conservative lending guidelines, a characteristic that is often more pronounced when it comes to commercial mortgages. Mortgage bankers refuse financing applications for a number of reasons, but many denials are the result of credit, documentation, or property issues. For example, traditional lenders rarely lend against properties with environmental concerns, such as a gas station or auto body shop.
Potential borrowers who are unwilling or unable to produce tax return documents may also have difficulty working with their local bank. Bankers who are forced to turn down an existing customer for mortgage financing risk losing all of that customer’s business with the bank. They prefer to salvage the relationship by referring the client to a trusted partner who can provide an alternative loan solution.
Originators can take time with their bank reference partners to find out more about their commercial lending “box”, that is, the transactions they will or will not make. Armed with this information, the initiator can expand their business to fill gaps and seize opportunities for bank spin-offs.
Promoting Trade Capabilities
Originators looking to enter into commercial loans should take concrete steps to educate the public. These days, you have to do more than just print new business cards or add “commercial” to your email signature.