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2. Several months later, the same lender asks if the broker can help raise a $5 million loan in two weeks. The broker looks at the property, talks to a short-term lender who can move quickly, calls the bank and agrees to take care of $4 million. This deal also gets done. The bank is happy, the client is happy and the broker is happy after receiving a $60,000 fee.
3. A client walks into the broker’s office with a request to refinance an apartment property in a hurry; another broker had not delivered the loan as promised. The loan needs $1.6 million, and the broker finds what is needed to close it on time. The client is happy, and the broker is happy upon collecting a $16,000 fee.
4. Three years later, the same client returns to the broker to finance $16 million to purchase an apartment property. This loan must close in 45 days, or the client loses $500,000. The broker finds what is necessary to close the loan in 44 days. The client is happy, and the broker is happy with a fee of $80,000.
These examples show what can happen if you act as a commercial broker. In this instance, in a four-year period, just four transactions delivered the broker $177,000.
Commercial loans allow residential brokers to supplement income without increasing their overhead. It may be worth the effort to get familiar with commercial loans and expand your revenue sources.
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