Many years ago, before banks were allowed to compete for deposits by raising the interest rates on their certificates of deposit ("CD's"), many good commercial real estate loans didn't get made because the nearby banks didn't have enough money. For example, suppose you owned a small commercial bank in Iowa, and a local manufacturer of farm implements came to you for a $2 million construction loan to build a new plant in your town. The deal might make sense, but if your bank was out of lendable funds, your bank couldn't make the requested commercial real estate loan. An industry therefore developed where an investment banker would bring an investor to the bank, and the investor would buy a $2 million certificate of deposit that would be coterminous (mature at the same time) with the proposed new construction loan. The bank would then be able make the new commercial real estate loan, and the investment banker would earn a fee for bringing in the depositor. But folks, this business started to disappear with the introduction of Regulation Q twenty years ago, which allowed banks to raise their deposit interest rates to attract new deposits. Banks now can easily raise all of the money they need to make good commercial real estate loans. I have never known one of these deals - where some alleged investment banker promises to provide CD's to the lending bank - to ever close. Maybe some of these deals closed in the past, but if you see a scheme like this modernly, you would be wise to run for the hills. There is a very real chance that the whole charade is just a scheme to steal the huge advance fee money that the "investment banker" will always demand. If you need a commercial real estate loan, why not work directly with over 750 banks by using C-Loans.com? It's free. | 
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