203791 Resource 78777 78860 78860 1210620334332 1210620783441 Controlled Commercial Real Estate Loan Brokers Often Pack a Deal to Death

Packing a Deal Means Adding Too Many Loan Fees

<p>Commercial real estate loan brokers usually add a loan fee of one to two points to the fee charged by the bank making a commercial real estate loan.&nbsp; This a reasonable fee.</p><p>Sometimes, however, a commercial real estate loan broker will take a deal to another loan broker, who takes the deal to a third loan broker.&nbsp; Then they will all try to add a fee of one to two points to the deal.&nbsp; When a commercial loan broker, or a series of loan brokers, all try to add a huge fee to the same deal,&nbsp;it's called <strong><em>packing the deal</em></strong>.&nbsp; </p><p>Such deals never close.&nbsp; Usually the banker working on&nbsp;such a&nbsp;commercial real estate loan will just automatically turn the deal down in order to save time.&nbsp; The banker knows from experience that there is no way that any decent borrower would ever take a deal that has been packed with more than one or two loan broker points.&nbsp; If&nbsp;some&nbsp;borrower would ever sit still for three or four broker points,&nbsp;the borrower&nbsp;must either be desperate or just plain stupid.&nbsp; Either way, such a borrower is a poor risk and a waste of time.</p><p>If you're a commercial real estate broker caught in such a <strong><em>daisy chain</em></strong>, you need to recognize that <strong><em><font color="#993333">daisy chains seldom (virtually never) close.&nbsp; </font></em></strong></p><p><font color="#000000">Unless you have the&nbsp;absolutely perfect commercial real estate lender in mind, you should immediately walk away from the deal.&nbsp; If you should decide to tackle such a deal (your chances suck!), you'll first need to convince all of the earlier loan brokers to share&nbsp;between them a referral&nbsp;fee of no more than 33 to 50 basis points.&nbsp; If they want more, run (don't walk!) away.</font></p><font color="#000000"><p /><hr /><p /><p>Do you need a commercial real estate loan?&nbsp; You can&nbsp;submit your commercial real estate loan to 750 different commercial lenders in just four minutes using <a title="Free databank of 750 different commercial real estate lenders." href="http://www.c-loans.com/onlineapp">C-Loans.com</a>.&nbsp; It's free!</p></font> 9 application/xml false commercial financing commercial loan commercial loans commercial mortgage commercial real estate financing commercial real estate loan commercial real estate loans daisy chains Apply to 750 Commercial Real Estate Lenders with Just One Mini-App http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322) 127.0.0.1 127.0.0.1 GBlackburne 69.69.38.83 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web