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11-20-2014, 07:12 PM #1
- Join Date
- Jul 2014
- Posts
- 74
Commercial Real Estate Loans
How many points are lenders paying for these types of loans?
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11-21-2014, 09:24 AM #2
- Join Date
- Aug 2014
- Posts
- 28
It really depends on the lender. If it is a solely private deal, probably 2-3 points. If it is a licensed entity, you will have to have the client sign a contract to pay you directly due to legal restrictions. At that point, it is up to you to negotiate with them. I have seen clients who will agree to pay as much as 7 points. Also, some of these deals may include refinancing, be aware that you can probably only charge points on what the client nets. For example, I've seen a deal in the range of $1,000,000 but the client only nets $150K. The rest just reduced his overall mortgage rate by 3/4 of a point. Each deal will be unique, there is really no formula here.
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11-21-2014, 10:22 AM #3
On large commercial this platform is all over the place when it comes to commission - and better served with a non-circumvention agreement in place. It's not unusual to get bargained down at that table to make the deal work for all parties, so be sure to have a good relationship with your Lender, so as not to be blindsided by this.
Reach out with any questions...Joe EsparzaFUNDKITE"FinTech High-Risk Funding Table"joseph.e@fundkite.com | 929.999.2700x1008
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11-26-2014, 02:46 PM #4
Commercial Real Estate Loans
Joseph, if you're open to it, I'd like to ask a few questions.
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11-26-2014, 03:44 PM #5
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