Investment lending education

Multi-Family & Small Balance Commercial 101: Bigger Numbers, Bigger Opportunity

Ready to move beyond single-family rentals? This course teaches you how to underwrite 5-20 unit properties and small commercial deals: NOI calculation, cap rate analysis, lease evaluation, and SBC underwriting. Same pricing tools, same LOS, just bigger numbers and bigger opportunity for your business.

Beginner 20 min 9 lessonsLoan ProgramsUpdated 2026-03-14

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Curriculum

3 modules, 9 lessons

Module 1Multi-Family Fundamentals

1Why Multi-Family? The Case for ScaleReading

2Underwriting Multi-Family: NOI, Cap Rate & DSCRReading

3Multi-Family Fundamentals QuizQuiz

Module 2Small Balance Commercial

1What Is Small Balance Commercial?Reading

2Lease Analysis for LOsReading

3Small Balance Commercial QuizQuiz

Module 3Multi-Family Hands-On

1Multi-Family DSCR Calculator PracticeCalculator

2Multi-Family Pipeline WalkthroughInteractive

3Multi-Family & SBC Final ExamQuiz

Why multifamily is the next step for investment brokers

Single-family DSCR is the foundation, but the real volume lives in multifamily. A single 10-unit deal can generate the same commission as five individual rental property loans with less total origination effort. Investors who scale naturally move into multifamily, and the broker who can follow them there keeps the relationship.

This course bridges the gap between residential investor lending and small commercial. You will learn the new metrics (NOI, cap rate, expense ratio) while building on the DSCR concepts you already know.

What you will learn

The course covers two related product areas: multifamily (5-20 unit residential) and small balance commercial (mixed-use, retail, office under $5M).

•Net Operating Income (NOI): calculating true property income after expenses
•Cap rates: what they mean, how they vary by market, and how lenders use them
•DSCR for multifamily: how the ratio calculation changes with multiple units and vacancies
•Lease analysis: evaluating tenant quality, lease terms, and income stability
•SBC underwriting: how lenders evaluate small commercial properties differently from residential
•Hands-on calculator practice with real multifamily scenarios

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Built by the team behind $1.8B+ in monthly investor deal flow.

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FAQ

Multi-Family & Small Balance Commercial 101 FAQs

Common questions about this course topic.

What is NOI and how does it differ from gross rent?

NOI (Net Operating Income) is gross rental income minus operating expenses like property management, maintenance, insurance, taxes, and vacancy allowance. It represents the true income available to cover debt service, making it a more accurate measure than gross rent for underwriting purposes.

What is small balance commercial lending?

Small balance commercial (SBC) covers commercial property loans typically under $5 million. It includes mixed-use buildings, small retail centers, office space, and other non-residential properties that are too small for institutional commercial lenders but too complex for standard residential programs.

Do I need multifamily experience to take this course?

No. The course is designed for brokers who understand single-family DSCR lending and want to expand into multifamily. It builds on concepts from DSCR 101 and introduces the new metrics and analysis techniques needed for larger properties.

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