Newbie's Question:
Why need commercial broker? Borrowers can directly go to lenders and deal with lender's LO, now there are so many web sites that provide free searching for loan programs and lenders.
Based on my understanding, the broker commission is paid by borrowers, if borrowers directly go to lender, that will save money, is that true?

From lender's point, do they make same commission with or without broker? or less commission with broker?

Thanks in advance for any advice

any suggestion?

The same thing could be said about a residential broker…. Why do you need any brokers at all?

I think it comes down to a few things.

Brokers do serve a purpose in commercial lending specially if you are inexperienced in finance. They can leverage their network of contacts, and a good one will help put your request in the best possible light in front of the lenders that might be interested in doing the deal. The problem with commercial loans is that there are no standards. And by no standards, I mean no standards in structure, fees, rates, and appetite of lenders for a particular type of loan, property or location.

They can save you time since you will more than likely won’t have the access to as many sources of funding as possible. They could theoretically save you money as far as rates by providing you more options than you could get on your own.

Residential and commercial are different.

Residential lenders give brokers wholesale rate and brokers can provide rates that are often better than banks, also brokers can get rebate from lenders

Commercial lenders don't have wholesale rate, and commercial brokers have to charge clients fee, and the rate is not getting better than direct lender.