Realtors/Mortgage Lenders Help!!?

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I have a commercial pocket listing. I told a mortgage lender I know that deal in commercial loans and told him if he had someone interested let me know. He calls me the other day and says he has an interested buyer BUT, there’s always a BUT. But, it’s not his buyer, he has another friend that is a commercial lender and it’s his buyer. The buyer does not have an agent so I will be facilitating the deal. The mortgage lender wants a 3% “finder’s fee” and my friend the lender wants 1% of the total purchase price from me (out of my commission, which is 2.5%), or they won’t bring the buyer to the table. Can the buyer’s lender get a 3% commission, my head and R.E. laws tell me NO, I already know I can’t pay my “friend” the lender 1% since he isn’t licensed? I am extremely perplexed by this, he tells me “it’s done all the time” I had never heard of it.

Can the buyer pay them a finder’s fee? My seller thinks they’re nuts, I am inclined to agree

Thanks for the help!

Could someone explain to me a little about mortgage brokers in Canada? I am beginning to look for a bank to get a mortgage through and I was wondering what the benifits / negatives of using a mortage broker are. From what I understand they shop around for you and find the best rates and best loan for you, but who pays them? Do I pay a fee to use there services? Or does the bank pay them a finders fee? Also, where is the best place to look to find a good broker?
Thanks Mister, that’s exactly what I wanted to know!

2 Comments
  1. Reply
    golferwhoworks
    January 27, 2011 at 12:12 am

    laws vary from state to state. In most cases if not a party to the contract they cannot get any funds. It may well be a scam

  2. Reply
    Mister Sarcastic
    January 27, 2011 at 12:23 am

    That’s correct, they shop around for you. You do not have to pay them anything – the bank pays them. They will present you with options from various banks. I went with a mortgage broker called The Mortgage Group several years ago and took a rate that ended up being with Scotiabank. You may be able to get the same deal yourself, but it saves you the hassle of going to the different banks. However, it is also possible that you can get yourself a better deal if you go to the banks yourself and are a savvy customer.

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