Commercial Real Estate Mortgage Brokers

3 Replies

Too vague a question.

There are commercial mortgage brokers who do 1 million dollar deals and those who do 30 million.

Different Universes all together and networks of clients and lenders.

There are point takers in daisy chains that like to hand off people but those are not mortgage brokers.

A great mortgage broker gets a package just right before send off to increase the chances the direct lender feels good about the property and the borrower. I have seen some mortgage brokers that are very good and others than aren't worth 2 cents. Just like every business there is the good with the bad.

@Joel Owens I am mostly curious about the brokers who work in the $1m - $5m space. 

Do the brokers you've had experience work mostly with banks? Do they utilize life insurance companies, CMBS lenders as well? Are their rates/service be comparable to going direct?

Thanks!

Life insurance and CMBS are generally not looking at sub 5 million properties. There are exceptions but most like higher quality assets and larger loans.

Mortgage brokers generally make 1 point on the loan paid when the loan closes. Anyone taking fees upfront run from that person.

There are (lender deposits) that reports are ordered from such as appraisal, phase one, inspection report, ALTA survey, lender legal fees, etc. What is unused from the estimated deposit is usually given back as a credit on the closing settlement statement from the title company. A few states use closing attorneys instead of title.

For multifamily some non-recourse lenders will go down to 1 million loan. For retail properties 2 million loan minimum is what I am seeing and some are at 5 million with rising property values.