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Mixed-use property purchase on Main Street in Manayunk.  Loan amount: 275,000 Credit Score: 570      Purchase of a garage in Trafford, PA. Loan amount: 41,250 Credit Score: 700      Single Family home rehab in Philadelphia. Loan Amount: 254,000. Credit Score: 720      Purchase of Mixed Use property on Girard Ave in Philadelphia. Loan Amount 525,000. Credit Score: 724      Refinance of Store front Totowa, NJ. Loan Amount: 65,000. Credit Score: 606      Purchase of commercial property in Donora, PA. Loan Amount: 71,750. Credit Score: 708      Land purchase in Newark, NJ. Loan Amount: 115,000.  Credit Score 672      Purchase of commercial property in Irvington, NJ.  Loan Amount: 275,000.  Credit Score: 604      Mixed use property purchase in West Philly.  Loan Amount: 81,400.  Credit Score 545      Purchase of 7 unit property in Union, NJ.  Loan Amount: 280,500.  Credit Score 761
   

Where can I find small commercial deals?

Everything about small commercial lending sounds great:

Very little competition from other brokers
Borrowers aren’t has rate sensitive
You can make more money
No predatory lending, covered loans or section 32s
The lender takes care of most of the processing – all you have to do is find the deal

The big question is “what do you do now?” Where do you find all of these small commercial loans and start making your fortune. I’ve got some ideas.

Self-employed past customers – Most self-employed customers either own or would some day like to own a small commercial property. Since they already know and trust you, they should be very receptive to hear what you have to say about commercial financing.

Real Estate Investor past customers – Most real estate investors don’t care if they buy a residential or commercial properties as long as they’re getting a good deal. The generally limit themselves to residential properties, because they don’t think that they can get commercial financing.

Accountants – Most small accountants specialize in self-employed borrowers. Set up an appointment and ask them they would recommend your services to their small business owners.

Small Commercial Realtors – There aren’t many brokers who handle small commercial loans. Look in the newspaper for the realtors that specialize in them. Since they’re ignored by most of the other loan officers, they’ll be happy to talk with you.

Chamber of Commerce – Most people that join the Chamber of Commerce are small business owners. Start going and spread the word around that you finance small commercial & mixed use properties.

Business Associations – Local business associations are made up of what kind of members? You guessed it. Small business owners who either own or would like to own a small commercial property.

Direct Mail – Buy a list of small commercial properties and let them know what you do.

Tele-market – Start calling the local business owners and let them know that finally someone is here who understands their needs.

Stop by & walk in – every restaurant, pizza place, Chinese food restaurant, bakery, bagel store, bar, tavern, nail salon, barber shop, hair dresser, tattoo parlor, mom & pop store, deli, jeweler, dry cleaner, laundry mat, insurance agent, used car lot, auto tags store & convenience store between your office and your home. Since most of these stores tend to be on the same streets, it makes your job that much easier. Have you ever been any of these places?

Now that you have all these new ideas about where to get small commercial loans, go do what you do best. Go find some deals.



Published in The Mortgage Press in October 2005

Ari Miller is Vice President of Gelt Financial Corporation, a private portfolio lender in Pennsylvania. Gelt lends in PA, NJ, DE & MD.  You can contact Ari at (215) 357-4955 ext. 275 or AriMiller@GeltFinancial.com.

 



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