Find Value and Success in Small-Balance Commercial Lending


The great Albert Einstein once said, “Try not to become a man of success, but rather try to become a man of value.” While Einstein in his brilliance may be right that value can be greater than success, many have found success by having more value to offer than competitors.

With the current level of uncertainty regarding interest rates and the housing market in general, it’s best that mortgage originators begin to look for other strategies to ensure success for the rest of the year.

Failing to act could result in less money made this year. But if you take on small-balance commercial loans, you can establish a new revenue stream and set your business up for success.

Whether you’re a commercial broker, residential broker, or mortgage banker, there is opportunity to be found in small-balance commercial lending. With small-balance commercial lending and a partnership with Silver Hill Funding, you can diversify your business and offer more value to your current and potential clients.

Commercial Brokers

I know what you’re thinking: “I already handle large-scale commercial mortgages. How will small-balance lending help me?”

Well, did you know the majority of commercial mortgage loan amounts are below $2 million?

You can close more deals in a shorter amount of time by focusing on smaller loans. They may not be as flashy as larger ones, but you will add a new component to your business and generate greater deal flow. By looking for clients and investors who require smaller loan amounts, you will be able to complete deals faster because less work is needed by you.

You already know what all is needed to complete commercial lending transactions, so add value to your business as a commercial broker and work with clients who have smaller loan amounts.

Residential Brokers

If you are a residential broker, you’ve no doubt received plenty of requests from clients asking if you work with commercial real estate as well. Rather than turning them away because you don’t have the means to complete commercial deals, why not turn those requests into a profit by forming a referral partnership with Silver Hill or becoming a broker and offering Silver Hill’s products?

Commercial lending isn’t easy, but simply referring commercial opportunities to a trusted partner is the easiest way to break into the industry. You or your company’s originators will not need any additional training to get started, and your work ends before the commercial transaction begins – meaning you avoid the challenging aspects of processing a commercial loan. All you will have to do is gather some basic information and then simply pass the deal off to Silver Hill to complete.

Silver Hill will treat your clients with the same respect you show them. In the end, you will still have a strong relationship with your client, and you will come out as the hero.

If you decide, however, to go the tougher route of brokering Silver Hill’s products, you could stand to earn more money for your business. While this option might require a little more work and some learning, Silver Hill will work alongside you during every step of the transaction.

Either way, you will be seen as more valuable to your client simply because you made a smart and easy choice to partner with a commercial lending company in order to help your client complete their deal.

Mortgage Bankers

With the uncertainty of interest rates and the housing market in general, the cost to produce loans may rise if your business is not seeing its normal influx. What if there was a way to lower the cost of producing those loan requests you are receiving?

With Silver Hill, there are multiple options to help you achieve this. If your loan officers have the bandwidth and a basic knowledge of commercial transactions, they can broker Silver Hill products.  If they don’t have enough time to broker deals, then you can always choose the referral route mentioned earlier.

Forming a correspondent partnership is another way to lower costs. With a correspondent partnership, you will be able to close loans in your name without needing to have the funds necessary to complete the transaction. This partnership gives your business value, while minimizing risk for your business by keeping the transaction off of your warehouse line.

This partnership type also allows you to maintain the highest level of control over the transaction, ensuring you know what’s going one each step of the way and keeping your relationship with your client.

If you see a regular stream of commercial deals but currently are not able to close as many, becoming a correspondent could be a smart move for your business.

If you want to broaden your lending capability and provide additional income opportunities for your company and originators, then work toward finding value in small-balance commercial lending options and success can follow.

Want to get started with Silver Hill?

Create your free Silver Hill online account and get access to exclusive small-balance commercial mortgage resources, such as customizable flyers, email/phone scripts, and easy access to all the forms you may need to complete a deal.  You can also use our mortgage payment calculator to get pricing info on your loan scenarios.*

Visit our Broker Portal to get started today!


*Results of this calculator and any generated term sheets are intended for estimation only. This is not an approval or commitment to lend and only intended to provide a broad estimation. Actual payments and interest rates will be calculated by Silver Hill after submission of a loan application and all other required documentation.

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