Rental Property Investor · Scottsdale, AZ · Member since 2016 · 184 posts · 223 votes
8y
for those of you who can't see the doc, try right-clicking the broken image and either "view image" or download it.
@Jeff Shelton like I mentioned, paying 2 origination fees is unusual. Is comland a mortgage broker? Usually they take their cut by charging points or by taking a kick-back from the lender. I'm not sure I've seen one which takes an origination fee, processing fee and underwriting fee. That just seems excessive.
The appraisal fee seems very high, but I don't know the market. however, 500 to review the appraisal seems unreasonable.
That all said, if you have a hard-to-fund deal with special circumstances (OOS investor, condos, 8 unit), you'll have to go with unconventional financing so you're really at the mercy of your lenders. They can charge you whatever they want, and it's up to you to either try to negotiate or find better terms elsewhere. If you can't, then plug the numbers into your model, and make sure the deal still makes sense.
It looks like you're pretty far along this deal, since it's supposed to close in 3 days, so i'm guessing you're in a take-it-or-leave-it situation. After this deal, you're going to want to make it a priority to find and establish relationships with local banks who deal with OOS investors, so you have more than 1 lender.
One thought: are the units individually parceled (i.e. do they have their own parcel number?) If so, you can take out up to 8 residential loans instead of a single commercial loan, although I don't know if that would make your fee situation better or worse, but at least you could shop them.
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
8y
@Jeff Shelton if there's a document in there you want us to look at, I can't see it. I always expect lots of fees at closing. If there are some that are outrageous I will usually hear about it from one of my trusted advisers like RE agent, attorney, insurance agent, inspector. Of course, most of the fees are going either to my trusted advisers or some government entity.
You can't do anything about the government and the service providers are worth whatever they are charging if they are good at what they do.
Investor · Chula Vista, CA · Member since 2017 · 38 posts · 1 vote
8y
I tried several banks and my guy at comlend was the only one that worked out, I didn’t know about Washington fed until my guy used his “connection” there to secure a loan. I don’t like the double origination either, sucks because that’s my equity their taking and less cash out for me
Rental Property Investor · Scottsdale, AZ · Member since 2016 · 184 posts · 223 votes
8y
for those of you who can't see the doc, try right-clicking the broken image and either "view image" or download it.
@Jeff Shelton like I mentioned, paying 2 origination fees is unusual. Is comland a mortgage broker? Usually they take their cut by charging points or by taking a kick-back from the lender. I'm not sure I've seen one which takes an origination fee, processing fee and underwriting fee. That just seems excessive.
The appraisal fee seems very high, but I don't know the market. however, 500 to review the appraisal seems unreasonable.
That all said, if you have a hard-to-fund deal with special circumstances (OOS investor, condos, 8 unit), you'll have to go with unconventional financing so you're really at the mercy of your lenders. They can charge you whatever they want, and it's up to you to either try to negotiate or find better terms elsewhere. If you can't, then plug the numbers into your model, and make sure the deal still makes sense.
It looks like you're pretty far along this deal, since it's supposed to close in 3 days, so i'm guessing you're in a take-it-or-leave-it situation. After this deal, you're going to want to make it a priority to find and establish relationships with local banks who deal with OOS investors, so you have more than 1 lender.
One thought: are the units individually parceled (i.e. do they have their own parcel number?) If so, you can take out up to 8 residential loans instead of a single commercial loan, although I don't know if that would make your fee situation better or worse, but at least you could shop them.