Advice Needed: Transitioning Away from a Hard Money Broker

[James Jackson]

Hey BP Community,

I’m in a situation with my hard money lender that I’d love some advice on.

Currently, I’ve been working through a hard money broker to secure funding for my deals. However, I’d like to work directly with the lender moving forward to streamline communication and save on broker fees.

There’s no legal agreement binding me to the broker. However, the lender is hesitant to work directly with me because they’re worried about damaging their relationship with the broker, who could potentially take business elsewhere.

Has anyone dealt with this type of situation?

• How did you approach the lender to convince them to work directly with you?

• Any tips for maintaining good relationships while making this transition?

• Am I missing any ethical or reputational concerns I should be aware of?

I appreciate any thoughts or experiences you all can share.

Thanks in advance!

[James Jackson]

Quote from @AJ Exner:

Do you mind sharing what the broker is charging on average? A lot of brokers will work wholesale with the lender so you shouldn't be paying too much more than even if you went direct. 

 There is not a set fee honestly. It fluctuates based on the loan amount. I get his with three fees. Broker fee, broker liaison fee, broker doc processing fee. I am also paying double for the appraisal. I can PM you a real number if you want to see it.