All Forum Posts by: Eric Schleif

No upfront fees payable to me. I only get paid if and when the loan closes. If the loan doesn't close I don't get paid. On commercial deals there are upfront fees that you have to pay to the lender for third party reports. This is normally referred to as a good faith deposit and they are paid to the lender, not the broker. This is all pretty standard. 

Most people will say that the standard fee is 1%, but in the commercial world those are for deals above $2 million or more. Deals north of $25 million can be less than 1%. 

I rarely place deals that are under $1 million. When I do I usually charge a flat $10,000, so i guess to answer your question about 2 points in your case. It may seem excessive, but these deals are usually the same amount of work to close as a $2 million deal.

Hmmm I see your concern. I'm a commercial broker for a large national firm. Here's how it should work?

1. You call me and provide standard info on the triplex you want to refi. 

2. I go out to lenders and provide with you several quotes. When I do this I usually don't provide lender names especially if you are a new client and this is our first deal. 

3. If you like a quote and want to proceed, we sign a brokerage agreement detailing my fee and the general responsibilities of you and me to protect us both and make sure all parties act in good faith. 

4. At this point you'll execute the term sheet and send cut a check payable to the lender for the good faith deposit. This covers third party reports like the appraisal. 

5. All paperwork and contact with the lender and other professionals flows through me. I work with all applicable parties to move the transaction forward to ensure an execution. 

6. Once the loan closes I get paid from the closing proceeds to cover my fee as outlined in the broker agreement.

This is pretty much it in a nutshell.

Let me know if you have any other questions.

Haven't heard of them/him, but any reason why you're asking? It should be relatively straightforward to execute on a NYC triplex. 

I would suggest contacting some local lenders or a commercial mortgage broker. They should know the area and market and can provide some insight on underwriting and what's available from a financing standpoint. 

Just a few things I'm curious about from your post:

What's the buildings' total square footage? What's the average size of Class B buildings in the market? Any one single tenant lease a large amount of the space? Are the leases NNN? Also what's the average rent per square foot. Your CBRE chart puts the market at $16.72 PSF. How does your building compare? Do the leases have escalations? What's the average lease term for the market? These are the just some of the quick questions I try to answer on deals like this.

You point out the quick lease roll time, which is a concern. But this is the norm in certain markets. We are about to close an office deal in the northeast where all the leases are 3 - 5 years. That's just the norm for the local market and there are local lenders that will understand that.

Best of Luck.

My apologies. I quickly read the post. Yes they would have to be secured by the property. Closing time is 1-2 weeks. Sounds like that won't accomplish what you are looking to do.

Just throwing this out there...Another way to go is with a revolving credit type product. It sounds that would check off a lot of your boxes. 

We do these all the time. You need to provide more details. Asset type, location, maturity date, loan balance, loan terms you are seeking, etc. When does your payoff period open? Defeasing CMBS loans can cost a fortune. We usually start up to a year out to forward rate lock loans to coincide when the prepay opens.