Mortgage Grapevine

Commercial Loan Question???

So I have come upon a great commercial loan. I have found a lender that will fund the loan. However they don't work with brokers. I spoke with my client and we have come to an agreement on how much he will compensate me for the help. As I understand it, I need to have him sign a contract. Do any viners have a simple contract they would let me use or follow in creating my own.

Peace
by PortlandLoanGuy November 3, 2009 1:06 PM

Screw the fee agreement and NCND contracts. You have to take them to court to collect.
If the lender won't work with you, they are going to try to middle you out for sure.
Open an account with Safefunds.com they are out of Indianapolis, Indiana. After you register with them, send your client there to deposit your agreed upon fee. It is 100% legitimate. Have your lawyer or your clients lawyer check them out first if need be. They will protect you, protect your client, and will release your fee only when your client gets his/her funding. It is by far the best way to protect yourself and your client.


by Seabiscuit November 3, 2009 1:18 PM

I would agree with the above.
If your lender will not pay you at closing you are rolling the dice to determine if your client can pay you out of loan proceeds. Yes a fee agreement will help but borrowers can be tricky. If not find another lender that will pay you at closing.
If you still want a fee agreement and you dont have a lawyer to pay try to look some up on the internet. There are some decent one. BUT you are better off having an attorney draw one up for you to use on this and future deals.
by pels November 3, 2009 1:39 PM

In the position you're in, I would have a lawyer draft up an air tight agreement. It's worth the money since you may loose everything if you use someones half-cocked agreement they created after a night of drinking.


by TheMaineEvent November 3, 2009 2:23 PM

But remember any agreement may still have to be enforced in court of law. So either get it in escrow or move to another lender. Surprised as most lenders will pay out of proceeds your fees.
by pels November 3, 2009 2:28 PM

100% agree. My borrower is trying to screw me out of over $100K (.5% fee). They were suppose to wire the funds on Monday and sure enough the borrowers attorney advised him he did not have to pay cause of some loophole he found on the contract. Never did I think it would be my client who would screw me out of the deal. The guy cashed out over $10M and can't honor the fee agreeement.

Again if this is a big transaction then their attorney will revise your fee agreement to benefit them or give them some type of loophole. Client wanted to offer me less than 25% of the fee agreeement in 'Good Faith'. Now I will have to waste so much money on attorney fees and this could take years if they go to court. Most likely they will settle but that will be later down the road. Unfortunately, not only me will be hurt in this ordeal as jobs will be lost once we start to subpoena the bank records. Everyone who helped my client get the loan closed will come out losing.

YOu cant trust no one; very sad.
by mike- November 3, 2009 2:31 PM

I'll say it again, screw the fee agreements and money for attorneys. Especially, if the deal doesn't fund my friend. Have the funds already in a "escrow like" special funds account. If it doesn't fund, your client gets all his/her money back except a small 10.00 nominal fee. You don't have to use Safefunds.com. There are other ones out there that are similar. If your going to spend money on an attorney, do it to check out the validity of what I'm referring to.
You'll spend more money on paying them to draft a fee agreement than you would to have them do the due diligence and then you'll have to pay them again to go to court and collect if they don't pay. A special funds account is the way to go. On commercial deals they have to have a certain amount in reserves and net worth to begin with.

You can also look for another commercial bank. But if you are not well seasoned, they most likely will try to screw you too.

Escrow "like" special funds accounts is where it's at.
by Seabiscuit November 3, 2009 3:27 PM

Go to c-loans.com. George Blackburn, the guy behind that company has what he says is an airtight fee agreement on the sight. He charges for it, but he is also an attorney and will help you collect if necessary.
by Vinnie The Leg Breaker November 3, 2009 3:30 PM

Thanks for all the suggestions.
by PortlandLoanGuy November 3, 2009 4:40 PM

PLG, actually you should get both a fee agreement and some sort of consultant fee on the side. It's really not an either/or proposition. But if you had to go with just one, go with the special funds account somewhere. Try for both though.





by Seabiscuit November 3, 2009 10:23 PM

Been there, Done That, got the T shirt. And, Several MM Fees, not Collected.
Last one, and that was Years ago, $1MM.

HAVE Closed 8 Figure deals and was the first on California to do so ( as an Individual). First one was brought to me, Impossible deal supposedly, through a Friend, never thought he would screw me, he kept 2/3rds of the fee, I got 1/3rd. East Coast Bank( my side), Petaluma California property, S. Cal Developer.

Made History and $35,000.

He made $300,000. Including his RE Fee.
WEnt on, To Embezel Millions. TWICE!!!! in 20 years, from Investors here. Man, can that guy talk.

I have always charged a portion fot he fee, up front, in cash, and put same in my Escrow Account. THe Contract reads, and it is out of date and I sell it for $5000. anyway, since I have seen it used by Strangers in a Court of Law, people begged it off me, THEN SOLD IT to other mortgage brokers around the State.
Anyway. Get a Portion in cash, up front, friend r not, witht he proviso, that hte funds are Totally Refundable
Unless you deliver a Tenative Loan Committment, on the written or similar Terms and Conditions. Make it specific to ONE LEnder.

The rest is up to your Attorney.


Above Grammer/Spelling/Punctuation and any other errors are a result of speed and are not necessarily typical of the OutPut of the Author. although they may be.
Your Mileage may vary.
by Commercialmoney4u November 4, 2009 11:26 AM

I spent 6 months in a legal battle with a cutomer I saved from Foreclosure on his Hotel in Northern Kentucky. We got the deal done and saved his property then he decided to not pay us at the closing. We won the settlement but only recieved half of what we were owed.

Two things:

1. It needs to be a nationally recognized commecial lender or life company.
2. You need an iron clad contract prepaired by an attorney.

My advice, work with a lender that will protect your interest and theirs on one agreement.
by hymie2009 November 4, 2009 4:20 PM

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