Resi Mortgage Brokers: Grow Your Business with SBC Loans

Posted by Mike Langolf on Sep 30, 2020 9:00:00 AM

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If you are a successful residential mortgage broker, you need to add Small Balance Commercial (SBC) lending to your tool kit. I will tell you why – SBC is upwards of a $200 B (yes, as in billion) a year market.

Including SBC loan products into your repertoire should be on the top of your list for expanding your business and profitability. The great news is that your existing customer base is more than likely to be a good source of SBC business.


One thing that is clear in our current economic environment is that successful businesses pivot on a dime. Businesses must quickly re-engineer delivery of their products and/or offer new products to meet rapidly changing customer needs. For example, restaurants during this pandemic. Some have transitioned from dine-in to delivery, others have modified their menus to make cuisine travel-friendly while maintaining quality, while others evolved their restaurants into makeshift grocery stores. These businesses are open and flexible to change and you should be too.


To that extent, Visio Lending is going to publish an ongoing series of blogs designed to help educate those not familiar with SBC lending. Topics will include: differences between SFR and SBC loans, what is required (i.e. rent roll, operating statements, etc.) to submit an SBC loan to Visio Lending, along with an educational series designed to help you understand concepts and terms of SBC lending (including how to calculate various ratios). Our goal is to help educate you and your team so you add another arrow in your quiver for when the historic refinance boom recedes.


While we understand that the SBC market is adapting to the “new normal,” the SBC team at Visio Lending is excited to embark on this series and remains available to answer any questions you may have regarding SBC lending.


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Topics: Small Balance Commercial