- Hand over direct contact with the client immediately
- Do not have Non Circumvent/Non Disclosure Agreements with clients being referred to me
- Have existing Broker Fee Agreements in place (especially in excess of 1%)
- Do not properly screen clients to make sure they qualify for financing
- Expect to be paid any fee amount greater than what I earn
Not sure what a Broker Chain is? Simple, it is a line of contact from us to the end client that has to go through more than 1 additional Broker or Referral source, all who want a piece of the commission.
Many of our Lenders have strict restrictions on the amount of Broker Fees that can be charged especially if they impact the financial viability of the client's loan request. Also they will NOT accept or honor any Broker Fee Agreements other than our own, so it will be best to not waste your time having the client sign any as we will negotiate these directly with them.
Because of these restrictions and to ensure that projects can be closed with out problems related to Broker Compensation we will typically split 25% to 50% of the Net Fees paid to us by the lender and the final amount will be determined prior to closing once the lender has determined how much will be allowed for total Broker Compensation.
As for Broker Chains or Networks, we prefer not to work with any but if you have a good and strong project that we would be interested in, you and any other parties behind you will be required to split the 25% to 50% amount paid to you and direct contact with the client will be given to me immediately, NO EXCEPTIONS!!!
Also it should be noted that any party that is providing consulting or other services for the client other than acting as a Broker should have their fees factored into the project as a line item soft cost rather than as part of the Broker Compensation. Anyone referring a client that is charging for other services that expects or demands a cut of the Broker Compensation should also expect to split an equal percentage of their fees to us in all fairness since "Double Dipping" will be looked at as a sign of greediness which we greatly frown upon.
One last note in regards to compensation, depending on the lender commissions maybe paid in one lump sum at closing or with each draw. This payment structure is non negotiable as we have no control over this requirement which is set forth by the respective lender and any referral source will be required to accept the pay out structure.
Any one interested in working with us must be willing to sign my NCND, Co-Brokering/Referral Agreement and to work with our required processes.