Farming for prospects is another tactic you might want to try. The key to farming is to narrow down your search criteria as much as possible to find exactly the right type of customer that will fit the profile. Lists are always available for purchase from title, insurance or market-research companies that help you search for customers who purchased an apartment building with more than five units in the past two to five years. The more information you can get, the better.

Unless your message is compelling, you can kiss your campaign goodbye. Part of your job as the expert on apartment lines of credit is to anticipate and meet your customers’ needs with solutions for their business. Start with the top three reasons to get a line of credit.

• Reason No. 1: Make renovations and repairs on the property. Is your investor looking to upgrade the property? Sometimes all it takes is some paint, some crown molding and a few small repairs or amenity additions to turn a B-grade property into an A-grade property. Whether they’re looking to get the property ready to sell or just to increase revenues, the best way to justifiably raise rents is to make apartment improvements. An apartment line of credit makes it easy to tap into existing equity.
• Reason No. 2: Free up cash flow. Property taxes hurt your customers’ cash flow. If your customers are in the middle of improvements or another property purchase and need some extra cash, a line of credit could be just the thing they need. The interest-only feature is particularly beneficial in this scenario, as the tax deductibility makes it even easier on cash-strapped borrowers. Of course, you should be sure to point out that discussions about tax deductions are best left between your borrowers and their tax advisers.
• Reason No. 3: Purchase another investment property. The apartment-lending industry is booming right now, spurring many investors to expand their real estate portfolio. If your customer already is interested in another building but unsure where to get funds for the down payment, leveraging equityto build more equity can be a wise investment. Choosing a full-service lender that also offers assistance with 1031 exchanges is a good idea.

Be sure that you’re targeting the right customers with the right reasons. By demonstrating how well you understand their business needs, you’ll be proving yourself as a worthy contributor to their real estate portfolio. The name of the game is relationships. You’re looking to deepen your relationship with your existing customers to ensure that you have a steady stream of business coming your way now and in the future.

Apartment lines of credit probably will not be your bread and butter. But if they’re what your customers are craving, it’s in your best interest to be the broker who serves all borrowers. If you can give them solutions, not just loans, they’ll remember you for their next loan, their colleagues’ next loan and so on. With each successful equity loan, you’re building your brand equity in your customers’ minds.

Michelle Edwards is the assistant vice president of mortgage originations for Technology Credit Union, a full-service financial provider with more than $1 billion in assets. Edwards has leveraged her vast mortgage sales and operations expertise to build Tech CU’s hassle-free, wholesale ALOC product suite to simplify the commercial (more than five units) apartment-lending process for broker customers. Contact her at medwards@techcu.com. Visit www.techcu.com for details.

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