Posted by Patrick S. Lawson on August 26, 2006 at 22:47:39:
It’s not a problem to structure a fee agreement for commercial loans as RESPA does not apply.
If a broker is involved in the loan then you just need to have an agreement for a “split” of the fees charged (30-60%) is reasonable.
If a broker is not involved than just use an agreement between you and the borrower. On a loan of that size a “financing success fee” of .25-.50% is reasonable.
Ed Question and more experienced - Posted by inger
Posted by inger on August 26, 2006 at 21:43:18:
You all have been so helpful in the past I wanted to ask about a finder’s fee. I have a potential deal helping a church refinance with a lender on my team. I am looking to collect a finder’s fee for my work with the lender and the church. What is the most I could charge given its about a 5.4 million dollar deal? Any suggestions would be much appreciated. I would think it would be okay to charge a finder’s fee in the loan and have an written agreement with the lender. But is this all legal
Re: Ed Question and more experienced - Posted by Ed Garcia
Posted by Ed Garcia on August 29, 2006 at 06:09:27:
Inger,
It?s customary when doing a large deal for fee?s or commissions to be pre-determined or agreed upon in advance. To do it after the fact or during could cause some disenchantment between parties.
You mention your team, but a lot would depend how much involvement you actually participated in. did you just introduce party A to party B or did you with expressed knowledge work the deal. If you are not a broker and professionally had an involvement in the deal by assisting in putting together the package or business plans etc. you can still be considered a consultant and be paid accordingly. Fees could range from a ½ point to a point which could be a substantial fee based on the amount of the loan.
Inger, I?d like to reiterate, any fees should have been discussed in advance. If you introduced the church to a lender in good faith, to be a good guy, and then decided that there?s money in the deal and you want to get paid, that?s tacky and both parties will recognize that you?re trying to be an opportunist and are not truly dealing in good faith.
If this is a one time deal, then you?re going to have to get your fee from the church. If you intention is to do on going business, then I?m sure you can work a deal with the lender/broker.
Ed Garcia
Re: Ed Question and more experienced - Posted by rogerdye
Posted by rogerdye on August 27, 2006 at 09:06:16:
Depends on the lender. What lender “looks” like they will be doing the financing? Do you have anything signed betweeen you and the lender or??