[abfunders]

So I made an honest mistake. I thought that a funder that I worked with (who's on the forum - don't reveal yourself!) paid same-day commissions. Turns out they wait a few days, which is 100% legitimate. However, I agreed to pay same-day commissions.

I co-brokered the deal. The other broker insisted that the rep needed to get paid IMMEDIATELY and that I was holding back the commissions, and they sent me all sorts of screenshots to prove it (as if her requesting that I look back at my emails wasn't enough). So I sent the commissions without much fighting, and it also wasn't that much money, and I'm not concerned about her stealing from me if it defaults, which I'm confident that it won't.

However, is it unprofessional or unreasonable for me to request that I get paid only AFTER I get paid on the file? Is it right for the other broker to insist on getting paid immediately? Any other thoughts on the matter? (Remember, people don't remember what they read a minute ago and just type a response to what they think that I wrote: I already paid them on the deal.)

[SendDocsPlox]

So I made an honest mistake. I thought that a funder that I worked with (who's on the forum - don't reveal yourself!) paid same-day commissions. Turns out they wait a few days, which is 100% legitimate. However, I agreed to pay same-day commissions.

I co-brokered the deal. The other broker insisted that the rep needed to get paid IMMEDIATELY and that I was holding back the commissions, and they sent me all sorts of screenshots to prove it (as if her requesting that I look back at my emails wasn't enough). So I sent the commissions without much fighting, and it also wasn't that much money, and I'm not concerned about her stealing from me if it defaults, which I'm confident that it won't.

However, is it unprofessional or unreasonable for me to request that I get paid only AFTER I get paid on the file? Is it right for the other broker to insist on getting paid immediately? Any other thoughts on the matter? (Remember, people don't remember what they read a minute ago and just type a response to what they think that I wrote: I already paid them on the deal.)

As the Superbroker you get the set the pace, if they don't like it they can get bent. It's your reputation it's your funder stats.
IMO make it clear that next time they get paid when you get paid, if they dont trust you they can find another shop to work with and for anyone else in the future make it clear off the jump

Assuming I understand

[ridextreme]

If that was me I wouldn't pay him until I received the commission. If they don't understand that, it's probably someone I wouldn't wanna do business with again. Also, the broker's rep insisting he gets paid immediately (it's probably the broker using that as an excuse) is a red flag on it's own. I'd be alil more careful instead of risking being cut off by the funder if something shady's going on.

[brokerCompany]

I dont pay until I get paid, there may be delays on occassion out of my control. If the other broker does not understand I wont deal with them again. If they are desperate and cannot wait a few more days for some money then that desperation will lead to shady stuff. Its your relationship on the line with the funder/lender. You have the power.

[BR-Nightmare]

So I made an honest mistake. I thought that a funder that I worked with (who's on the forum - don't reveal yourself!) paid same-day commissions. Turns out they wait a few days, which is 100% legitimate. However, I agreed to pay same-day commissions.

I co-brokered the deal. The other broker insisted that the rep needed to get paid IMMEDIATELY and that I was holding back the commissions, and they sent me all sorts of screenshots to prove it (as if her requesting that I look back at my emails wasn't enough). So I sent the commissions without much fighting, and it also wasn't that much money, and I'm not concerned about her stealing from me if it defaults, which I'm confident that it won't.

However, is it unprofessional or unreasonable for me to request that I get paid only AFTER I get paid on the file? Is it right for the other broker to insist on getting paid immediately? Any other thoughts on the matter? (Remember, people don't remember what they read a minute ago and just type a response to what they think that I wrote: I already paid them on the deal.)

Micah,

Nothing wrong holding your ground to pay when you got paid. Ultimately they are using you to assist them in funding the deal. It's only right that they wait.



Happy Hanukah to you and all those who celebrate.

[dailyfunderppt]

It's a sad situation, because you want to keep them to keep working with you but at the same time protect your interest. I agree with letting the broker know off the rip.

Happy Hanukkah!

[MichaelP]

It sounds like the only issue here was that you told them they would get paid same day (because you thought they would) which was an honest mistake. If it was me I would explain to them the mistake that I made. Show them a screenshot from the funder stating when I would get paid and then proceed to pay them after I had received payment.

[Olderguy]

What happens if there is a clawback?

Brokers contact me all the time and the few I do as emergency fundng, I pay when clawback period is over.

Most can't live with that.

I'm not taking the risk.

[abfunders]

Thanks everyone for your assessments. Every single one of you had a good point to add or make clear what I had thought. Relationship building, honest mistake, happy Hanukah wishes, etc. (Except the one that starting asking "but what about clawbacks? That wasn't the issue here, I made that clear that it wasn't the discussion.) This was mainly for the other broker to see that I'm not unreasonable or unprofessional. There was a true ISO agreement I have that would have taken care of this, but whatever. All good, hope to fund more with them, but it's gotta be on terms that make sense.

[m1641]

It's your word. You made the mistake, pay the person what you promised when you promised.

Everyone else saying they would renege is the reason why this industry is so scummy.

Next time, pay attention to all of the facets of the deal, then make agreements on the rates/terms/commissions.

[MichaelP]

It's your word. You made the mistake, pay the person what you promised when you promised.

Everyone else saying they would renege is the reason why this industry is so scummy.

Next time, pay attention to all of the facets of the deal, then make agreements on the rates/terms/commissions.

You think it's reneging on the deal to say "Hey, it turns out that this particular funder pays X amount of days after funds are wired. My apologies for the confusion I will send out the commissions on X date"??? It is not common practice to pay someone before you get paid and in a situation like this it seems so obvious that it was an honest mistake. As long as commissions actually get paid, I can't see any serious broker who funds consistently having a problem with this scenario. You're right that you should have all the facts straight about a deal beforehand and it's important to make sure everyone is on the same page, but in a fast paced industry like this sometimes things get overlooked. To say paying the commission after it gets paid out in this situation is the reason the industry is so "scummy" is a really hot take.

[Michael I]

it goes by what you made up , makes no difference what's happening on the other end . I will take it one step further , even if the funder screws the middleman and just doesn't pay him he is still responsible to pay the iso . risk of being a middleman without saying everything is based on funder . What ever you make up is what you are responsible for regardless what else happens

[MichaelP]

it goes by what you made up , makes no difference what's happening on the other end . I will take it one step further , even if the funder screws the middleman and just doesn't pay him he is still responsible to pay the iso . risk of being a middleman without saying everything is based on funder . What ever you make up is what you are responsible for regardless what else happens

I don't super broker. If I did I would have an agreement and in the agreement there would be language around payments. You get paid if and when I get paid etc. Outside of an agreement like in this situation which it sounds like was a small deal(and probably the reason there was no agreement) It's hard for me to wrap my head around demanding the payment before the super broker got paid and not listening to the reasoning from the super broker, unless I had a reason to believe I would get screwed in which case I wouldn't have submitted the deal to the super broker in the first place.

I understand standing on your word, especially if your livelihood depends on people sending you deals, and if I was a super broker I might feel the same way about paying regardless of getting paid and taking a loss so as to keep the relationship, but I just can't imagine demanding that as the broker.

[closer129]

I don't super broker. If I did I would have an agreement and in the agreement there would be language around payments. You get paid if and when I get paid etc. Outside of an agreement like in this situation which it sounds like was a small deal(and probably the reason there was no agreement) It's hard for me to wrap my head around demanding the payment before the super broker got paid and not listening to the reasoning from the super broker, unless I had a reason to believe I would get screwed in which case I wouldn't have submitted the deal to the super broker in the first place.

I understand standing on your word, especially if your livelihood depends on people sending you deals, and if I was a super broker I might feel the same way about paying regardless of getting paid and taking a loss so as to keep the relationship, but I just can't imagine demanding that as the broker.

I would not trust that broker if they are demanding to get paid right away. I would think that something shady went on and the deal might go bad and they wont get there money. If they had work together before and they know they will get paid why would they be demanding to get paid right away. Even if they were told they would be mistakes happen especially when you are working with a new funder and they have different guide lines.

[ridextreme]

It's your word. You made the mistake, pay the person what you promised when you promised.

That doesn't really sound too logical. If someone tells you "The deal funded, I'll wire your comm tomorrow" then when tomorrow comes he tells you "I didn't get my commission yet so I'll send it as soon as I get it" and you say "BUT YOU PROMISED ME YOU'LL PAY ME TODAY!!!", you might be a lot better off working a non-commission based job with a regular salary and paychecks every Friday.

[DonMcGrath]

So I made an honest mistake. I thought that a funder that I worked with (who's on the forum - don't reveal yourself!) paid same-day commissions. Turns out they wait a few days, which is 100% legitimate. However, I agreed to pay same-day commissions.

I co-brokered the deal. The other broker insisted that the rep needed to get paid IMMEDIATELY and that I was holding back the commissions, and they sent me all sorts of screenshots to prove it (as if her requesting that I look back at my emails wasn't enough). So I sent the commissions without much fighting, and it also wasn't that much money, and I'm not concerned about her stealing from me if it defaults, which I'm confident that it won't.

However, is it unprofessional or unreasonable for me to request that I get paid only AFTER I get paid on the file? Is it right for the other broker to insist on getting paid immediately? Any other thoughts on the matter? (Remember, people don't remember what they read a minute ago and just type a response to what they think that I wrote: I already paid them on the deal.)

Its not unprofessional or unreasonable for you to request that you get paid only AFTER you get paid on the file. It's also standard practice to get paid within 24 hours after a deal funds. However, it is a matter of a lack of communication, and disappointment due to unmet expectations.


Both you and the co-broker are simultaneously correct in your lines of thinking; but it's like that line about how people should just use more common sense... but the same good decision made in a 1st world small town suburb, can get you in trouble in an inner city project, and will likely kill you in a 3rd world tropical rain forest.

I don't think you really need any advice, because I bet next time you'll never make that mistake again and you'll always know when a deal pays out.