[Shokunin_America]

I am a licensed commercial real estate broker, business broker, finance specialist, and certified exit planning advisor. While I work larger success-fee-based deals for CRE/Business, I sell operating capital loans and revolvers as a way to normalize my income stream since brokerage can be feast or famine and take-3-9 months to close.

I have a small staff including a seasoned executive assistant, bookkeeper, senior financial analyst, social media person, and an IT person to help me automate our Zoho CRM system.

I'm getting ready to hire a coordinator to help with the client handoff once a client engages in our services.

I was curious to learn about worthy referral programs to offer clients so they'll become a great marketing resource for the business.

I don't see offering a fee discount as something very motivating. Are you offering cash? AMEX gift cards? Trips?

What is working these days?

Thanks for your input.

[Olderguy]

I get all my files from brokers and past clients.

I usually split commissions with brokers and have them handle the paperwork.

In most cases I'll talk directly with the client as the brokers have limited knowledge about loans ouside the MCA arena.

I will suggest a broker set up an initial conference call with me and the client introducing me as the underwriter. Then the broker can learn about how I go through discovery to determine what loan they might qualify for.

Usually I then tell the broker to just go sell the MCA's and I'll handle the SBA or hard money property loan or equipment loan.

In some instances where I do a LOT of heavy lifting ($6.4M hotel) I'll pay 25%.

But I treat it as far as possible and sometime just can't assume a referral rate until I get involved and advise the person accordingly.

I just paid a broker 50% but deducted 25% of that and paid the processor independently as the processor claimed they weren't getting paid.

[Michael I]

I get all my files from brokers and past clients.

I usually split commissions with brokers and have them handle the paperwork.

In most cases I'll talk directly with the client as the brokers have limited knowledge about loans ouside the MCA arena.

I will suggest a broker set up an initial conference call with me and the client introducing me as the underwriter. Then the broker can learn about how I go through discovery to determine what loan they might qualify for.

Usually I then tell the broker to just go sell the MCA's and I'll handle the SBA or hard money property loan or equipment loan.

In some instances where I do a LOT of heavy lifting ($6.4M hotel) I'll pay 25%.

But I treat it as far as possible and sometime just can't assume a referral rate until I get involved and advise the person accordingly.

I just paid a broker 50% but deducted 25% of that and paid the processor independently as the processor claimed they weren't getting paid.

So someone sold you a story and you screwed the broker by paying them less ?

[Olderguy]

So someone sold you a story and you screwed the broker by paying them less ?

The broker was screwing the processor and I took care of it....and sent the broker a cease and desist letter from my lawyers and if I had your information I would do the same to you

Go ask Elon as he can verify the broker screwed the processor.

[Olderguy]

So someone sold you a story and you screwed the broker by paying them less ?

Please ban this guy.

[Michael I]

The broker was screwing the processor and I took care of it....and sent the broker a cease and desist letter from my lawyers and if I had your information I would do the same to you

Go ask Elon as he can verify the broker screwed the processor.

Haha a cease and desist letter for what ?asking you a question on a public forum? I am just trying to understand what you wrote.
So I went into the plumbing supply store last week to buy a water filter replacement that was about $100 .the owner had his teenage kid working there in the summer for free should I have paid $50 for the filter and given the kid $50 in cash for his pocket ? Again trying to understand the logic

[Olderguy]

Haha a cease and desist letter for what ?asking you a question on a public forum? I am just trying to understand what you wrote.
So I went into the plumbing supply store last week to buy a water filter replacement that was about $100 .the owner had his teenage kid working there in the summer for free should I have paid $50 for the filter and given the kid $50 in cash for his pocket ? Again trying to understand the logic

broker wasn't going to pay the processor...so I paid him and took his pay out of the broker's cut.....guess yoiu wouldnk't understand that huh.

[RickyR3712]

broker wasn't going to pay the processor...so I paid him and took his pay out of the broker's cut.....guess yoiu wouldnk't understand that huh.

Was robin hood a theif or a hero?

[Michael I]

broker wasn't going to pay the processor...so I paid him and took his pay out of the broker's cut.....guess yoiu wouldnk't understand that huh.

I do not , if you owe someone money you need to pay him , what he owes to other is between him and them. Funders deal with this daily , where a broker will call them and say they are the broker and the other broker is screwing them etc. I do not know one funder that goes and pays anyone else but the one who submitted it

[goatFunding]

broker wasn't going to pay the processor...so I paid him and took his pay out of the broker's cut.....guess yoiu wouldnk't understand that huh.

okay.. I am officially going from neutral on all this talk about you... to thinking you should be the one banned.

[abfunders]

I do not , if you owe someone money you need to pay him , what he owes to other is between him and them. Funders deal with this daily , where a broker will call them and say they are the broker and the other broker is screwing them etc. I do not know one funder that goes and pays anyone else but the one who submitted it

To be compliant, I side with Michael as accurate. You cannot just pay someone else because he said so. The only scenario that this works is if you were being legitimately threatened by a lawsuit by the "processor" to your own money, in which case you I would put the money in a separate account until their lawyers work it out. If I weren't being sued and I heard the story, then I would utilize the situation to step in a mediate, since the money is with me. If the submitting broker is screwing over the "processor" then don't work with said broker again, and create the relationship with the processor directly and apologize.

In general, the relationship in a broker-funder relationship is direct, nobody else mixed in unless told otherwise. The broker-broker relationships can get more complicated, but I personally treat them the same and say up front that "I don't split commissions 3 ways, you guys take care of it." They can generally be worked out with finesse. Most of the time we all just want to get paid especially if it's a "throw it over the fence" scenario.

Maybe Elon can jump in here and give some color? Explain why this was a warranted response, when legally it appears like Steve is admitting 100% wrong-doing.

[Olderguy]

according to my attorney broker released his claim on the commission:

"We are no longer moving forward in Steve’s direction as there are a lot of inconsistencies and lack of communication and transparency.

We will get our assurance with our in house funder which was our original plan. "

Client blocked broker's number....that and above releases your claim to this company.

And:

"Please cease to contact any of my clients as I will be continuing to work with them personally. Therefore, do not contact or communicate with them in any way shape or form please.

Thank you for understanding,"

Client chose to work with me and not with the broker....

Both clients contacted me directly....

Client violated the law charging lender search fee for mortgage which is against the law for unlicensed broker.

Bottom line, broker is a lying SOB and I believed the processor that they were not getting paid.

[mistamca]

according to my attorney broker released his claim on the commission:

"We are no longer moving forward in Steve’s direction as there are a lot of inconsistencies and lack of communication and transparency.

We will get our assurance with our in house funder which was our original plan. "

Client blocked broker's number....that and above releases your claim to this company.

And:

"Please cease to contact any of my clients as I will be continuing to work with them personally. Therefore, do not contact or communicate with them in any way shape or form please.

Thank you for understanding,"

Client chose to work with me and not with the broker....

Both clients contacted me directly....

Client violated the law charging lender search fee for mortgage which is against the law for unlicensed broker.

Bottom line, broker is a lying SOB and I believed the processor that they were not getting paid.

This is like the 5th or 6th time you have mentioned that a broker decided to stop working with you. At what point do you take a step back and look into the mirror? Maybe vet your referral sources before starting to do business? Maybe don't change money terms after the dust settles?

[Olderguy]

This is like the 5th or 6th time you have mentioned that a broker decided to stop working with you. At what point do you take a step back and look into the mirror? Maybe vet your referral sources before starting to do business? Maybe don't change money terms after the dust settles?

The broker wanted to charge a PSF. Client balked. I closed the deal without the PFS, broker came unglued, client blocked the broker. Broker said they no longer want to do business with me. I have over $10M of their clients in process. None of the clients are dealing with the broker ever again. I do what is in the best interest of the client, not what makes the most money for the broker. Broker still makes money, just not stupid money. Broker refuses to do deals wthout a PSF. That's a lot of lost deals. Is that really the right way to run a business. $6.4M deal. Broker said if they don't get their 1.75% PFS, they aren't doing the deal, I did the deal without it. So who wins and who loses? Client said fawk the broker and their PSF.

[RickyR3712]

You got to hand it to Steve for being honest about being dishonest. He is agreeing that he gets the merchant to work with him over the broker. I hope whoever the broker out there is, takes screenshots before he come to his senses of what he is actually writing.

[abfunders]

So this begs the question. What do you do if a broker claims ownership on a client? I know LOTS of brokers who claim ownership. But what happens if that client, who was working with the end broker (in this case Steve), wants to continue despite the "submitting" broker? I have had deals like this before where the middle broker tried to stop the deal, but they had already "handed off" the client to me. They were willing to let the deal DIE and let the client lose his business and go BK just because they weren't going to get their 10% PSF and 10% in company shares. I continued working the deal because what was I supposed to do? I funded the deal, and then notified the referring brokers directly that I got paid and then paid them the full amount to prevent hard feelings and to keep the relationship. Of course they used it against me afterwards, but I proved them wrong in a mediation, renewed the friendship, and they still work with me (but I have to be SUPER cautious and get lots of information up front).

So what does a broker do? Let the submitting broker "CONTROL" the file and hold everyone including the merchant a "hostage" to demands for frees? Who are we as brokers if not matchmakers? Does a father who contacted a matchmaker get to break off the marriage of his daughter who found someone to marry? Honest question here, I hear where Steve is coming from, but you have to be able to finesse the relationships and not just throw it out because "lawyers."

[Olderguy]

Micah:

I've had brokers who were complete ass wipes try as best they can to steer the client away from me as they think they can go to a direct lender and not share the commission with me.

None of these brokers know anything about SBA or hard money loans.

It depends on the level of harassment ... I'll still do a 50% split. But if the broker goes beyond and starts getting into disparaging me and my reputation, and outright lying, that's when I'll charge a 25% harassment fee and cut their commission to 25%.

If the clients comes to me more than 30 days after the initial contact, then it's my client and I've had many do that.

I have one guy tell the broker to fawk off. Said he was going to talk to other lenders. Wasn't going to pay any PSF. Then he came back to me a month and a half later and said he wants to do business with me. Do I owe the broker anything? Good question.

[Zonefund]

Please ban this guy.

Michaels been on this website before you posted here probably or sold your first mca.

Im sure youve double funded over 10 deals as were just starting august.