Many mortgage brokers choose to focus purely on residential real estate transactions due to the higher number of clients, and therefore transactions, in any given period. However, brokers who spend all their time gaining expertise in residential-only transactions miss out on the huge profit opportunity commercial real estate offers. Commercial real estate is one of the most overlooked profit areas for the typical mortgage broker.

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Brokers interested in adding commercial loans to their portfolio will be glad to learn that their expertise in residential mortgages will translate to the world of commercial real estate. While the similarities are significant, there are a few differences a broker will need to learn to become both proficient and profitable in the commercial real estate sector. 

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Multiple training options are available for brokers looking to cross-train from residential loan products to commercial loan products. Besides commercial broker training classes, self-paced training toolkits are also available to experienced residential brokers. The toolkits include sample documents, templates, and applications needed for a business to apply for a commercial loan. With these tools, a broker will learn the requirements for each type of commercial loan that a client must have to be eligible for consideration, as well as the products that might be best suited for their client’s business. 

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Like residential lenders, commercial lenders have various loan products to choose from and specific qualifications a business must meet to be considered for a loan. With toolkit training, brokers will get to see a variety of loan applications, sample commercial loan products, and a list of the top lenders in the industry. With some time and effort, any broker can quickly learn the ins and outs of commercial lending. Similar to residential loans, a commercial broker will facilitate the loan documentation and agreement between a business and lender. 

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Once familiar with the variety of products available to commercial clients as well as the specific requirements for each product, a commercial lender can efficiently and expertly recommend a top-notch loan product for almost any business regardless of the business’ financial situation. This in-depth understanding will save your commercial clients time and money in the long run on their transactions. Most commercial loans have terms as low as five years compared to typical residential loans. Depending on the lender, most commercial loans may have up to a 90-day cure period while applications and documentation are reviewed for loan approval. 

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Brokers interested in adding commercial real estate to their knowledge base will see that while these clients may not be as frequent as residential clients, they often come with higher property values, shorter property turnovers, and increased potential for secondary property purchase. This often translates to larger commissions and more repeat business in a shorter period of time. Getting a commercial loan toolkit can prepare any residential broker to add this lucrative aspect to their business in a short amount of time.