Hello Everyone,

I have a net branch, and want to expand into commercial lending. My background is in accounting and I enjoy the business to business environment. I am also in the process of relocating, our home is scheduled for completion this month. Therefore I decided to seek someone I could co-broker with, so I could learn and it would take some of the pressure off, until I moved. To me the person I found wants to pay a commssion that does not equal out fair. If I just turn the client over it is a comission of 1/2 point, if I submit all the documents it is 15% of 4 points. Am I wrong? What is standard? Thank you.

ugggh thats what you call highway robbery. if youre doing commercial loans then the split should be at least 60% him and 40% you of the whole commission pay. if its a residential deal, well that we would have to speak about because that is a bit trickier. by the way on a commercial deal you should also sign a co broker agreement to protect yourself.
Joe Pagan
Loan Officer

ok, so you are saying that if say, i have an 18 mil loan commercial that is and i bring it to a commercial broker i should expect to receive 40% of the transaction? most of what i see on residential is split fees down the middle, but i am a little lost on commercial, it seems that maybe the commercial brokers need to have alot more knowledge on the subject than i probably have.

say, it is my first commercial deal at 18mil for an office building, what should i expect? thanks

I"m new to to this forum, but wanted to reply to this posting. I work for a commercial brokerage and the split to associate broker goes anywhere from 10% to 40% on a case-by-case basis. The reason for this is the neophytes that have a client, but have absolutely no idea of how to proceed in terms of documents, structure, agreements, lenders. The more work we perform the less the percentage the "broker" receives. Pretty much these days you can throw a stone and hit a comercial loan request - but knowing what to do with it is the tricky part. There's just no way I would pay anyone 40% - 50% just for the fact that they say they know someone who needs a loan.