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How Residential Brokers Can Profit in Commercial Real Estate Lending

Posted by:  Jim Morstad
2016-09-08 12:23:30

How Residential Brokers Can Profit in Commercial Real Estate Lending

As of January 2015, according to the Federal Reserve, there were over $1.6 trillion in commercial real estate loans under assets held by commercial banks in the United States. [1]. Typically, about half of these funded loans originate from banks like Balboa Thrift and Loan.

Do you think the odds that you and Balboa Thrift and Loan can carve out a piece of this trillion pie together are good? I’d say so.

Commercial real estate loans are built to meet the needs of the borrower and the lender with lending parameters subject to extensive underwriting and due diligence prior to closing. Balboa Thrift and Loan incorporates what is considered in the industry “common sense lending[2] for all loans we review.

the underlying real estate collateral has value, the borrower can demonstrate repayment, and the story makes sense.”[3]

We take into account the story behind each loan and consider all aspects involved in funding a commercial loan - something others banks don’t and/or can’t do.

Commercial real estate loans become more than just a number or a credit score because all loans are reviewed, handled, and underwritten in-house by professionals that understand the unique landscape of today’s commercial real estate lending environment.

But how does any of this help you profit in your business?

In a word, referrals.

The clients you already service on a daily basis could be involved in commercial real estate in various ways. 

  • Maybe you work with a client that runs their business in an owner-occupied capacity and needs help refinancing a commercial real estate loan? We have a cash-out option to qualifying borrowers. Those funds could help with a new home down payment, repay existing debts, and improve your client's financial situation.
  • Are your high net worth buyers also commercial property investors? We offer loans up to $2 million+ on various property types throughout Southern California with flexible, competitive rates with no prepayment penalties. We also offer entity ownership lending.

Often times a referral can come from seemingly unlikely sources. The commonality behind finding these profitable sources of income is simply asking your clients a question:

“Who is helping you with your commercial real estate lending needs?”

Use Balboa Thrift and Loan as your answer and open up a profitable pipeline to increase your income while providing a unique customer service.

Contact us today at your convenience to discuss your clients’ commercial real estate lending needs. You can also sign up on our website to become an approved broker today.

 

Jim Morstad, Vice President of Commercial Real Estate

jmorstad@balboathrift.com

800-809-7044

 

[1] https://en.wikipedia.org/wiki/Commercial_mortgage#Mortgage_brokers

[2] https://www.opusbank.com/ocr/20-michael-allison/480-common-sense-lending

[3] http://www.parkplaceequity.com/park-place-equity-blog/how-to-recapture-commercial-real-estate-equity-with-common-sense-commercial-lending#.VaaydflVhBc

 

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