Commercial Loan Broker Fee Agreement
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"Bottom line, if you're
working on deals
without a fee
agreement, you will
get screwed."
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Attention - Commercial mortgage brokers, commercial loan officers, residential loan brokers and residential loan officers:
Imagine no more games or worries about being paid on commercial loans. Nothing stings quite like NOT being paid on a commercial mortgage after you've put months into it and succuessfly delivered for your "client" to have either them or the LENDER screw you. You've got to have a your commercial loan broker fee agreement in place.
Have you heard banks say to you "oh, we don't have formal agreements with brokers, but we'll pay you your fee outside of closing." Or how about this one "Why would we not pay you? You're a valuable source and we what to keep you around?" Or how about a more tricky one - they send you an agreement but "forget" to sign it and or act annoyed when you ask them about it.
Commercial Loan Broker Fee Agreement
Or heres one I used to hear all the time from borrowers, after submitting a term sheet that fits exactly what they wanted and what I quoted "oh, we know xyz bank... not to be rude by why do we need you?" Or how about this one "Jeff (me) we've known each other for years, I will pay you. But, the last thing I want to do is get my attorney involved in reviewing or writing some kind of fee agreement. It will cost me hundreds if not thousands of dollars. Lets get this thing going first, than we'll take care of you at the appropriate time."
Bottom line, if you haven't been screwed by either a borrower OR a lender, than you're probably not doing as many deals as you want. If you are not protected you will get screwed, it is just a matter of time. There aren't a lot of words more frustrating to hear than "well, what do you have in writing?" after diligently working on a file for months, only to realise that you will not get paid or only get paid a percentage of what you were originally quoted. Or have to take someone to court with weak documentation. You have to have your commercial broker loan contract signed and in hand.
Fee Agreement for Commercial Loan Brokers
Believe me when I say that we have learned this lesson the hard way. It has happened to us on multiple occasions where well known "reputable" banks simply changed what they said they would pay us on ysp. Many times internail emails won't cut it either. Or, borrowers will try to give you a sob story on why you'll have to wait or worse "what do you mean, I thought the bank pays you".
You got to have it in writing or you are at their mercy.
Quick story here, I had three loans in process with a very well known small balance lender (That I would like to name but won't). We had done multiple transactions with this lender and felt confident this issue would never come up. Surprisingly, our BDO (business development officer) was fired and our files in process where given to another BDO that we did not know. All three loans closed within one week of each other. When we received our check it was 30% lower than what we originally agreed with the previous loan officer. When we called both the new BDO and his bosses they all said "well, what do you have in writing". And yes, we ate it.
Commercial Loan Broker Fee Agreement
We spent $750 for our attorney to write this commercial mortgage broker fee agreement. It has protected us well and stood up in court three times. One of the disputes was on a $8,000,000 hotel deal and a $80,000 fee. And yes, this time we got our money. You can alter it for real estate, equipment or business acquisitions and or a combination of all three. Also it can be easily change from exclusive to non exclusive representation.
We are giving it away for $29.95, until July 1, 2008. At that point it will go back to $49.95. And yes, we offer a full money back guarantee for those of you that are as paranoid as I am.
Jeff Rauth
President
Ps: Remember, YOU risk nothing. I'm giving you a 100% MONEY BACK GUARANTEE and am taking all the risk. Why would I do this. Because I know the day will come when you will be stuck on a deal and will want to co broker it with us or submit a deal for us to act as the lender and you will not want to burn any bridges with us a viable source. So buy it now! and protect yourself and your interests. Don't let yourself get taken advantage of.
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