FUNDING
MORTGAGE BROKERS
Should You Consider Partnering with a Commercial Mortgage Broker? AN ARTICLE SERIES ON NAVIGATING THE PRIVATE LENDING WORLD
by Damon Riehl
f you are like most real estate investors, you have a relationship with an insurance broker who is part of your core team of partners. Your insurance broker makes sure you have the right coverages at the best price for your properties by searching the marketplace and negotiating the best deal for you. You count on them to contact several insurance companies to find the offer that fits your needs. This is what enables I
them to create value for you: They save you time and money. In the world of finance, commercial mortgage brokers deliver the same benefits to real estate investors.
direct lenders simply provide the same rates to brokers as they do real estate investors who contact them directly. Most top private lenders, however, have wholesale rates that are discounted to allow commercial mortgage brokers to be highly competitive with a lender’s retail rate sheets. They know the brokers are handling the borrower’s marketing, managing the paperwork, relationship, and communications.
WHAT COMMERCIAL MORTGAGE BROKERS DO
Many real estate investors assume commercial mortgage brokers are more expensive to use. They assume
58 | think realty magazine :: january – february 2023
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