commercial mortgage brokers are constantly wondering whether they should be exclusive relationship with customers, or go the "easy way" and grant an exclusive agreement to not share. What is the difference? What are the advantages and disadvantages of both? This is the point of this short article.
An exclusive relationship in commercial mortgage companies can be thought of as an agreement to list the real estate brokerage side. Or more precisely,The exclusive agreement should be thought of as a tenant representation agreement for those with this agreement.
In essence, the exclusive agreement means that the borrower agrees) to work exclusively with mortgage broker on a base with shopping for lenders, negotiating term sheets and coordinating the processing and closing of the loan (among other legal issues I am not qualified to discuss. The mortgage broker business, dealing withthe entire transaction for the borrower and typically is looking out for the interests of borrowers. A non-exclusive agreement covers many of the same questions, but gives the consumer the right to work with other lenders / brokers. So there is no guarantee that you win the business and received or paid.
The main advantage to the commercial mortgage broker for an exclusive, is that the borrower has with the broker work involved, and at the end of the transactionthe broker is paid. For those reading this article about the deals worked for months with the borrowers and where they lost to know why the fee is 10 basis points or slightly less, how bad can be.
fee agreements cover more exclusive than the issue of exclusivity, supports, costs covered, minimum fees are some of the important issues. For example, a borrower is sent a thousand dollars and owners signed an exclusive agreement, says a lot;he goes on board and work with you.
There are disadvantages, however, go for an exclusive agreement. It 'clear that many borrowers simply do not disconnect on this subject. It can be a hard sell. They want you to "Get it cited" or "see what we can offer" first. Basically, borrowers want to maintain full control and we want to work with you only if you are able to produce the best deal. You are about to lose his job on the deal, if you do not agree. You may know thatperfect for business and banking or simply work on him alone with the hope that a solid relationship on track.
In addition, you may not want to work on the deal on an exclusive basis. Believe me when I say that if the borrower agrees to a contract of 5 pages and sends you a bracket of $ 1000, which they want their money will not come and gone. If it is much weaker and can not get it done, you have to invest much more time in the business as he wanted andor termination of the relationship and risk tarnishing your reputation.
So unfortunately there is no easy answer, whether or not you should go for an exclusive commercial agreement to pay mortgage brokers. But a borrower should have something that you work with him and that you paid to close, said plate.
