Doing small balance loans with PSRS

Doing small balance loans with PSRS


What is a small balance loan?

Small balance loans are defined as a loan made between $1-10 million. 

Borrowers typically do not think of life companies as contenders for loans of these sizes, as the perception is that the life companies focus primarily on loans from $5 million and up. Those loan requests then find homes with CMBS lenders, banks, or credit unions, who simply cannot offer some of the value that you will find through life company execution. 

As it turns out, life companies have a significant appetite for your loan requests from $1 million and up.

What are the benefits of working with PSRS to gain access to the life company small balance programs?

Life company execution can provide:

  • Long-term, fixed-rate loans from 10 to 30 year terms, fully amortizing (if desired)
  • Best market rates. Resulting from contracting spreads as treasuries escalate
  • Non-Recourse debt
  • Flexible prepayment options
  • Significant cost savings through due diligence
  • The ability provide you with additional capital throughout the life of your loan. Recapturing some of the equity created, without having to create a 2nd mortgage
  • Local servicing of your loan with the PSRS team
We have 23 correspondent life companies who put their money out through our firm. Their capital is proprietary and can only be accessed through the correspondent system. Southern California is uniquely poised to get best pricing for small balance requests, as So Cal properties demand high valuations and benefit from stellar demographics. 


  • Non-recourse financing
  • Lock rate at application
  • Terms – Floating Rate to 40 Year Fixed
  • Minimal to no reserve structure
  • Current servicing portfolio of $5.5 Billion – Fast servicing decisions
  • Nationwide coverage in the US on all commercial and multi-family real estate
  • Loan sizes from $1 Million to $100 Million+

About PSRS

Founded in 1972, Pacific Southwest Realty Services (PSRS) is one of the largest privately-held commercial mortgage banking firms in the Western United States. Our funding sources include major life insurance companies, banks, credit companies, CMBS and institutional investors.

Access to diverse capital sources insures a high level of success in arranging commercial real estate loans, apartment loans, mezzanine loans, and equity transactions that our clients have come to expect. Our long-term lending relationships give us greater latitude in solving problems and closing loans in a timely manner.  After the loan funds, our experienced, in-house servicing team handles many issues such as assumptions, lease approvals, payoffs, insurance and many other similar matters.

Featured Transactions