By Joe Mardesich
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“2 Keys to Commercial Lending,”
“It’s All About the Product,”
“The Other Side,”
“The Well-Rounded Broker,”
commercial lenders now and then. Just talking shop
about products and programs for a few minutes a
week will soon have you spotting potential deals
Talking about commercial mortgage deals on a
regular basis helps train your mind to look for those
opportunities. It also alerts others that you are interested in pursuing those transactions.
There are several other ways to mine commercial
gold from your current prospect and customer flow:
■ ■ Mention you do commercial loans to Realtors
and other referral sources. You don’t have to be an
expert already. Just decide that you are going to
pursue commercial transactions, and let your network know.
If you are an originator working on the residen- tial mortgage side of the business, you likely have commercial loan opportunities coming across your desk from time to time.
If you haven't delved into the commercial side of the
business to date, however, it's likely that you are not
paying much attention to those opportunities, or even
noticing them. When you do finally connect the dots
and begin to see commercial loans as a new source of
business, it will be like one of those cartoon light bulbs
turning on over your head.
The economic value of these commercial loan
opportunities can be substantial, and it's not as difficult
as you might think to capitalize on them. It all starts
with a small shift in your mindset. To take advantage
of opportunities, it's important to first recognize them.
Everyone has had some kind of experience with selective perception. Some small children, for example, can
be obsessed with balloons. It seems that they can see
balloons everywhere, while their parents are oblivious
to their existence most of the time.
The reason many children can seemingly spot balloons so easily is because they are thinking about
balloons. It’s similar to when you buy a new car and
suddenly, everywhere you go, you see that same car.
You probably rarely noticed that particular model in
the sea of automobiles previously, but now that particular car seems to be on every road you travel.
Selective perception with commercial loan opportunities works the same way. Once you tune in to them,
you begin to see them everywhere. You may have had
the experience of fellow originators telling you they
never run across commercial loan deals only to discover that the next time you see them they are excited
about one or more commercial deals in the works.
What happened? It’s a good bet that those originators have had a perception shift. They are now sensitized to commercial loan opportunities and are now
“seeing” those deals, instead of letting them pass by
You can add substantially to your income and professional reputation by doing the commercial mortgage deals that come your way. First, however, you
have to open your mind to the possibilities and decide
to see the opportunities.
One thing that helps turn you into a commercial
mortgage magnet is to have conversations with
on Facebook, LinkedIn and other social media
■ ■ Ask the self-employed clients you work with this
question: “Do you own or rent your business premises?” If they say they own, ask if they plan to move,
expand or need cash for any reason — or if they
would be interested in looking at a refinance. If
they rent, ask if they would be interested in owning.
With U.S. Small Business Administration-backed
commercial loans, for example, borrowers often
only need to put 10 percent down — sometimes
less — when purchasing a building that they plan to
occupy, and the monthly loan payment often will
be less than the lease rate.
■ ■ Look at every residential loan application and set
of tax returns you run across to see if there are rental
properties referenced. On the tax returns, look at
Schedule E. Clients who are investors are often in
the market to buy more property, to refinance existing holdings, to improve cash flow, or to pull out
cash for improvements or further investments.
■ ■ Capitalize on networking opportunities. As you
talk with colleagues and clients, and get to know
about them, commercial lending opportunities are
likely to present themselves, if you are paying
attention. This approach also will help your residential origination prospects as well.
These strategies will help you to cultivate commercial
loan deals with minimal disruption to your current
activities. Once you begin to see these opportunities,
you will be like the child who loves balloons: You will
begin to see them everywhere. ■
Commercial Loans Are
a Golden Opportunity
To capitalize on that business, residential originators
must first recognize the potential deals all around them
By Joe Mardesich
Joe Mardesich is a commercial lending expert and consultant to the mortgage industry. He has been in commercial
lending for more than 16 years at banks and brokerages,
has taught commercial lending and brokerage to numerous
individuals and companies, and previously served as CEO
of Nationwide Commercial Funding/National Apartment
Finance Inc., a commercial mortgage banking company catering to residential and commercial mortgage brokers. Reach
Mardesich at (801) 822-6301 or firstname.lastname@example.org.