| Now having a good commercial mortgage broker | | | | example it's very rare that a smaller bank will pay |
| agreement in place with your borrower is more | | | | rebate or ysp. Once in a while you may find a bank |
| important than ever. As CMBS lenders like Lehman, | | | | that will pay a .5% or 1% referral fee, but that's it and |
| Silver hill, etc have been taking the worst of it, we as | | | | it's rare to find. |
| commercial mortgage brokers are now forced to | | | | Rather many of these banks expect you to get paid |
| originate our commercial mortgages through traditional | | | | on top of their 1% bank fee. Or worse many of them |
| sources, i.e. regional or smaller banks. | | | | will want you to make your fee outside of close... |
| These banks that for years saw their market share | | | | When was the last time you chased a borrower for a |
| shrink are now in control. Many of them never | | | | $15,000 commission? If you don't have it set up right |
| bothered to increase their risk thresholds and or | | | | from the beginning you will have a difficult time ever |
| change their underwriting guidelines to stay competitive. | | | | collecting. And besides collecting you will have a hell of |
| They are now reaping the rewards of that prudence. | | | | a time competing on the deal. |
| Bottom line, they still have money to lend and many | | | | So the point here, besides that this current market |
| times their rates are considerable better than the rest | | | | reality is not a lot of fun, is that if you think you'll have |
| of the market. | | | | to take your deals to a local banks, you'd better have |
| The challenge however for commercial brokers is that | | | | your commercial mortgage broker fee agreement |
| most of these smaller banks are not broker friendly. Or | | | | signed and in place before you bother to work on the |
| more accurately stated most of them are not set up | | | | deal. |
| to work with brokers like the CMBS lenders. For | | | | |