Commercial Real Estate Loan referral fee

Member since 2019 · 3 posts · 2 votes

This is a question for Commercial Real Estate lenders. What type of referral fee commision is standard these days on a Commercial Real Estate loan? The loan needed will probably be around 5 million.

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Zach Wain

Scottsdale, AZ · Member since 2019 · 434 posts · 248 votes

For that size, I agree 0.5%-1%. I would charge 0.5% in yield spread and keep the up front costs to nothing. Nice and easy.

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Nick Conley
Lender · Dallas, TX · Member since 2023 · 71 posts · 19 votes
3y
Robert,

I am a residential lender but I do have plenty of contacts in that space and I would say to expect .5% to 2% depending on the deal and your relationship.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Robert Johnson:

This is a question for Commercial Real Estate lenders. What type of referral fee commision is standard these days on a Commercial Real Estate loan? The loan needed will probably be around 5 million.

Usually .5-1%. These bigger deals are skinny on the commissions
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Zach Wain
Scottsdale, AZ · Member since 2019 · 434 posts · 248 votes
3y
For that size, I agree 0.5%-1%. I would charge 0.5% in yield spread and keep the up front costs to nothing. Nice and easy.
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Robert Johnson
OP
Member since 2019 · 3 posts · 2 votes
3y
Quote from @Nick Conley:

Robert,

I am a residential lender but I do have plenty of contacts in that space and I would say to expect .5% to 2% depending on the deal and your relationship.

Any Commercial Lending contacts in Texas that you could refer to?
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Nick Conley
Lender · Dallas, TX · Member since 2023 · 71 posts · 19 votes
3y
@Robert Johnson,
I would need to know a little bit more about the deal as a whole for that, when you have a chance feel free to message me directly and I can get you to the right people hopefully.
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Caroline Gerardo
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
3y
.5 - 1 depending on complexity and how fast the borrower is at getting needs list.
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Dennis Muno
Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes
3y
Quote from @Robert Johnson:

This is a question for Commercial Real Estate lenders. What type of referral fee commision is standard these days on a Commercial Real Estate loan? The loan needed will probably be around 5 million.

Like everyone has said here, normally 0.5-1%. Since the loan amount is usually larger normally it isn't more than 1% per lender involved in the deal. If there is say a broker and a lender usually they share the fee for origination
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Adam Bartling
Lender · Rosenberg, TX · Member since 2022 · 286 posts · 130 votes
3y
@Robert Johnson typically for referral I pay 30% of my commission as points can vary on the type of deal. Are you a lender looking for a lender to broker? If you are brokering 1% is normal, but the lenders are all 2-3pts origination to start.
Bartlinglending.com is my commercial site
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