By: Chris Santo (Chris has been in the commercial lending field for many years and is currently responsible for supporting clients who use their origination and underwriting software for the commercial lending industry. In 2002, Chris has consulted on over $500MM in commercial mortgage deals. Visit his Website at www.LendingApps.com or email him at csanto@LendingApps.com)

While it is true that a person who needs a commercial mortgage can contact a local banker friend with whom he plays golf with on weekends and obtain a commercial mortgage for their commercial property, what that person may NOT know is that he may be able to obtain more attractive and more suitable financing (e.g. longer term, fixed rate versus adjustable rate, less equity or money down) at a more competitive rate by working with a mortgage broker versus the local banker.

The key to originating commercial mortgage business is to understand the value you bring to the transaction. Finding the potential "client" who needs a commercial loan (another topic which we will address in greater detail in future articles) can be easily research by reviewing your own files. The 1003, page 3, Real Estate Owned section will tell you who owns commercial real estate. You can work with a commercial real estate broker, attorney, and financial advisor or search public records—just like you would research for "residential" mortgages.

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