In my weekend reading I come across different ideas that enable proactivity which is really one of the keys to success. This type of reaching out for commercial refinance opportunities has merit. As always, if anyone needs assistance in commercial mortgage funding or training, we are here to help.
Finding Commercial Refinance Borrowers
One key difference between Commercial and Residential Mortgage lending is that there are always Commercial borrowers that need money. The need comes from a balloon payment coming due, a tax payment due, partnership dissolution, or a sale. These needs are outside the ups and downs of the residential refinance cycle. Therefore while the residential market is currently in a downside cycle, commercial is steady.
File Reviews
- Existing Customers
- Dead Files
- Closed Files
- Old Files from Loan Officers no longer with your firm
What to Look For on the 1003:
- Look on the Real Estate Owned Section for Commercial Properties owned
- Look for Self Employed Borrowers (the self employment box is checked)
- Call and ask if they are interested in refinancing their commercial property.
Be assumptive, assume they own commercial property. If they don't they will tell you.
Reminder: A borrower that said no last time may say yes this time. Some borrowers may have pulled all the equity from their homes. However business property owners will need capital to expand or may have a balloon due.
Self Employed Borrowers:
Is there a Self Employment letter from an accountant or CPA?
Call and let them know you closed a loan for their client, and that you can close commercial properties.
Call the Insurance Agent on the binder and let them know what you do.
If you call an accountant or insurance agent, make an appointment to have coffee, or a meal with them if they are within driving distance. Explain what you do and ask for referrals. Reminder: While RESPA bans referral fees, it does not cover Commercial transactions. You can legally pay a referral fee to other professionals (with full disclosure).
Michael Haltman, President
Commercial Capital Alliance/Exeter Commercial LLC
131 Jericho Turnpike, Suite 202
Jericho, New York 11753
516.741.8880 (O)
516.741.6838 (F)
haltman@easycommercial.com http://www.easycommercial.com/ http://www.thecommercialcapitalmortgageseminar.com/
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